💼 Business Model & Marketing Strategy
The Business Model Canvas
The Business Model Canvas is a one-page tool with 9 blocks that describes your entire business model:
1. 🎯 Value Proposition
What problem do you solve? Why customers choose you.
2. 👥 Customer Segments
Who are your customers? Be specific about your target audience.
3. 💰 Revenue Streams
How do you make money? (Subscription, one-time sales, ads, etc.)
4. 📢 Channels
How do customers find you? (Website, social media, stores, etc.)
5-9. Supporting Blocks
Customer Relationships: How you interact
Key Resources: What you need to operate
Key Activities: What you do daily
Key Partners: Who helps you
Cost Structure: What it costs to run
🎯 Exercise
Sketch out these 9 blocks for your startup on paper. Start with Value Proposition and Customer Segments.
Revenue Models
Common Ways to Make Money:
- Subscription: Monthly/yearly recurring fees (Netflix, Spotify)
- Freemium: Free basic + paid premium (Dropbox, LinkedIn)
- Marketplace: Take % of transactions (Uber, Airbnb)
- Advertising: Show ads to users (YouTube, Instagram)
- One-Time Sale: Pay once, own forever (Apps, courses)
Pricing Tips:
- $99 feels cheaper than $100 (odd pricing)
- Offer 3 tiers (Basic, Pro, Enterprise)
- Make sure price reflects the value you create
Marketing Essentials
The Marketing Funnel
Awareness → Interest → Consideration → Purchase → Loyalty
Top 3 Marketing Channels for Startups:
1. 📱 Social Media
Instagram/TikTok for visual products, LinkedIn for B2B. Post 3-5x per week, engage with your audience.
2. 💬 Word of Mouth & Referrals
Make it easy for users to invite friends. Give rewards to both referrer and referee.
Dropbox example: "Invite friends, both get free storage" → 35% of signups from referrals!
3. 📝 Content Marketing
Blog posts, videos, tutorials that help your audience. Builds trust and brings people to you.
Start Small
Don't spend big on ads until you've validated your product. Start with free channels first!
Key Metrics to Track
| Metric | What It Means | Good Target |
|---|---|---|
| CAC | Cost to acquire one customer | < 1/3 of LTV |
| LTV | Lifetime value per customer | 3x CAC or more |
| Conversion Rate | % of visitors who sign up/buy | 2-5% |
Golden Rule: LTV > 3x CAC
If a customer brings you $300 in value, you can spend up to $100 to acquire them.
Your Action Plan
🎯 This Week's Assignment
- Fill out the 9-block Business Model Canvas
- Choose your revenue model and pricing
- Pick 2-3 marketing channels to focus on
- Set up tracking for CAC and conversions
- Create a 30-day marketing plan
🎓 What You've Learned
- ✅ The 9 blocks of Business Model Canvas
- ✅ Common revenue models and pricing strategies
- ✅ Top marketing channels for startups
- ✅ Key metrics: CAC, LTV, Conversion Rate
- ✅ How to create a go-to-market plan