j2r business model canvas ebook

JourneyToRemarkable.com presents

This is a field guide for anyone who has ever wanted to create a meaningful, remarkable, & profitable business!

TABLE OF CONTENTS

1.  INTRODUCTION

2.  STARTING FROM SCRATCH

3.  CANVAS CULTURE

4.  THE J2R BMC

5.  J2R BMC ANATOMY

6.  J2R BMC DETAILS

7.  BMC OUTCOMES

8.  PUTTING IT ALL TOGETHER

9.  NEXT STEPS

10.  ABOUT THE AUTHOR

2 JourneyToRemarkable.com

INTRODUCTION

Wouldn't it be nice to create your own business and reap the rewards so many others have achieved?

We read and hear about amazing businesses everyday on the news or by word of mouth. So and so made millions dollars with their business, or brand X is the next hot thing in the marketplace.

But let's face it, business is not easy. In fact, we know that most businesses fail-‐-‐and when I say most, I mean over 90% of them.

Who would take that level of risk?

I'm hoping you will if I show you how to minimize your risk and create a business model that is intelligent and strategic at every turn. I call this the J2R Business Model Canvas (J2R BMC).

I will guide you through the 12 basic components every business must have to succeed. EssenQally, these are 12 “buckets” that businesses have to fill up to be feasible. The J2R BMC is a handy way to chart this.

Once you have started the process of refining these components, you will have the best shot at making a profitable business—someQmes within days!

But it’s not only about profit, it’s about creaQng a business that is also meaningful and sustainable.

Are you ready to join the ranks of self-‐made entrepreneurs and small business owners? Let's go!

CHAPTER ONE


“ We are all authors and heroes in our own journey to remarkable. -Arlie Peyton


STARTING FROM SCRATCH

Before we get to the J2R BMC, remember that it’s just one element of creaQng a business from scratch. When you start a business, you start a unique process too. There are five steps you should follow:

①  RESEARCH: First do research with the target market you wish to serve. In a brief survey with open-‐ended quesQons, unearth some of the pains or problems in the industry. Be curious and try to get some observaQon Qme in.

②  INTERPRET: Interpret the data to create your hypothesis. Here is where a business idea or product might come up. Not beginning your company with a product or soluQon is ideal.

③  RESPOND: With your best soluQon to the pains or problems your market outlined, go back into the field and get feedback on it. This is ocen just a blueprint.

④  CREATE: The creaQon phase is where your ideas and experiments come together to form an actual product to sell. Create a prototype and test it out. With a refined version, try it out with your audience and consider gedng pre-‐sales to achieve greater validaQon (Kickstarter and Indiegogo are plaeorms you can set up to do this).

⑤  GROW: In this phase, you should have several versions of your BMC filled out by now. You begin to see pagerns and a clear path to progression. Your next steps should be clear.

CHAPTER TWO


STARTING FROM SCRATCH

As you can see, starQng a business can be a tough process to document. There will be lots of interviews, surveys, data points, charts, research, reports, facts, etc. This is where a good business canvas comes in. BMCs are a nice one-‐page quick shot of how your business is moving along.

Remember, you should have several dracs of your BMC. They are meant to be updated and reconfigured over Qme. In every stage of this process you are adding, taking away, and refining your canvas. This is why people make big poster-‐sized versions of the BMC where they use sQcky notes to change up their entries.

Take note or take a picture of each change—even small changes—so you can reflect on the direcQon your company is going.

Like an art canvas, you can change things, start over, focus on certain areas, or step back from it to analyze your masterpiece. Crea4ng value is done by ar4sts, and the science is the business model canvas.

CHAPTER TWO


CANVAS CULTURE

In the last few years, we've learned that business plans are pracQcally useless when creaQng a new business. They're ocen wildly opQmisQc with their profit forecasts and there are too many assumpQons from the out start.

Instead, one-‐page business models worksheets or "canvases" are being used to quickly iniQate and plan a business concept.

The invenQon of the Business Model Canvas (BMC) has been invaluable for individuals and teams to visualize and analyze businesses today. At its core, it's basically the scienQfic method applied to building a viable business. With that, several different types of BMCs have been developed.

The BMC that started a movement was the original Business Model Canvas by Alexander Osterwalder (2010). We have found that it's a great tool for more established companies. The Lean Canvas by Ash Mauyra is the best choice for tech start-‐up companies (2011). The Crea7ve Canvas by Jen Nesbit is your best bet for starQng arts, cracs, and design businesses (2014).

CHAPTER THREE


THE J2R BMC

The J2R Business Model Canvas (J2R BMC) is different!

It is more general than all of the above, and it will work for any kind of business: startups, micro-‐businesses, and large companies.

Furthermore, the J2R BMC quickly gets you to think about your business journey as a process and remarkable story in the making.

J2R stands for “Journey To Remarkable”, the flagship company that created it.

And like a story, it is the hope that people build amazing products that provide remarkable value to others. And in this process of building a company, founders embark on a heroic journey of learning and growth.

CHAPTER FOUR


THE J2R BMC

CHAPTER FOUR


THE J2R BMC ANATOMY

To help recall all 12 components of the canvas grid, they are grouped in 3's. In the BMC grid, these groups spell the word "SUMS" verQcally. They are also numbered in the order that you should do them, or top-‐to-‐bogom and lec-‐to-‐right.

RED: Components in the red row all begin with the leger "S" and they're very important. If you don't get these three right first, nothing else will mager.

BLUE: Components in the blue row all begin with the leger "U". The focus is on the posiQoning of your product and company. These components are crucial to gedng and keeping your edge in the marketplace.

BLACK: Components in the black row all begin with the leger "M". SaQsfying these components give your company focus and clarity.

GREEN: Components in the green row all have a key word that begins with the leger "S" again. These are the components that must add up to progression in your business-‐-‐financially and visually. Investors like to see that hockey sQck formaQon on profit growth charts: that’s the goal here too. The odd man out here is "Story" because hopefully your business is more than just making money. This whole process is a journey and story Qes it all together.

CHAPTER FIVE


J2R BMC DETAILS

1. Segment

Start your canvas by deciding on what industry you want to be in first. This is aligned with your interests, purpose, and passion. This will point you toward general customers you'll have to reduce to specific segments. These segments, or tribes, are people you want to solve problems for. Make sure this segment is a good size and has plenty of money to spend.

Ques%ons: What industry do you want to be in? Where are profitable and underserved segments you can see yourself working in?

Example: Female, Lacrosse Players, Ages 15-‐25, HS-‐College educated, $60-‐110k household income, USA.

CHAPTER SIX


J2R BMC DETAILS

2. Sizable Problem

Scratch a big itch, not a ligle itch. Interview people to discover your customers and their biggest unsolved problems. Customers ocen point to the problem, someQmes no product idea is necessary. You want to solve a big problem they will pay to alleviate. Make sure the TAM (Total Addressable Market) is large enough to make good money and possibly scale. Use Google, industry organizaQon figures, government data, and sites like StaQsta.com to get started with TAM.

Ques%ons: Are you scratching a big itch or liDle one? Is this a problem for the few or the many? What is your (TAM) worth?

Example: Get the most out of pracQces as a team and individually, based on team and player weaknesses. Youth Sports is a $7B market, with an equipment sales over $105M in 2014. At the college level, there are more women's teams than men's teams.

CHAPTER SIX


J2R BMC DETAILS

3. SoluQon

SoluQons are a combinaQon of what you've learned from customers and your ideas: in that exact order. Provide a unique and effecQve soluQon set to the customer's problem. Consider if this soluQon is easier, cheaper, cooler, or quicker than the compeQQon.

Ques%ons: What are the top three features and benefits of your solu7on? Has this solu7on already been done?

Example: 1. Digital Planner and Lacrosse Drills App. 2. Custom coach-‐assigned drills for each player to pracQce. 3. Also keeps team and player stats.

CHAPTER SIX


J2R BMC DETAILS

4. Unique Selling Point

This is what makes your product or service more valuable and different than the compeQQon.

Ques%ons: Why would a customer choose your solu7on over others? What makes yours so different?

Example: App and Online-‐based socware that can be accessed anywhere. Focus for each player and grouping. Mastery-‐based approach with gamificaQon features.

CHAPTER SIX


J2R BMC DETAILS

5. Unfair Advantage

This protects you from copycats and it's a feature that helps you do things incredibly well. UA's include specialized knowledge, money, influenQal networks, technology, patents, skill sets, degrees, plaeorm, etc.

Ques%ons: What resources do you bring to the table that makes this business possible? Why are you the perfect person to do the job?

Example: Founder is a coder and has 10 years experience making socware. Founder is an organizer of several start-‐up compeQQons.

CHAPTER SIX


J2R BMC DETAILS

6. Unique Lead GeneraQon

Failure to get a steady stream of new prospects into the sales funnel is one of the leading causes of business failure. You need your target demographic to noQce you and begin the sales process. What incenQves or ethical persuasion tacQcs could you include?

Ques%ons: Do you have a unique system that exposes your poten7al customers to your product or service en masse? Can this system con7nually provide you quality leads? Is this system cost effec7ve?

Example: Early Adopter incenQve: 50% discount. Once beta is done, full price for everyone else. Recommend full teams to sign up, first month fee is FREE.

CHAPTER SIX


J2R BMC DETAILS

7. Minimum Viable Product

MVPs keep your company from burning through money and Qme. It serves as a good soluQon in the first stages of product development. More advanced or extra features come acer you've validated and refined your MVP.

Ques%ons: What is the one thing your product or service must do right and very well? Does your MVP solve the major problem of the customer?

Example: Once entered, all data must sync for all to access. Customizable drills sets.

CHAPTER SIX


J2R BMC DETAILS

8. Metrics

Key metrics are the performance categories you should be focusing on the most. This could be sales, downloads, space usage, sign-‐ups, speed, customer saQsfacQon, etc. Pick 3-‐5 and just focus on those unQl the company takes shape. You can easily monitor these levels, so you can agend to anything that might go wrong.

Ques%ons: What are the most important ac7vi7es should you be measuring right now? What are good levels and bad levels for each category? What are the top 5 things you should be doing that will generate the greatest targeted results?

Example: Page Views, Team Sign-‐Ups, Usage Time, Upgrades

CHAPTER SIX


J2R BMC DETAILS

9. Mantra

Your brand mantra is derived from and the essence of your Purpose, Value, Mission, and Vision. Dwindle these five descripQons into one sentence or one word each. Combine the best parts of the aforemenQoned components to create your brand mantra in one word or phrase. This will help with branding and keep your daily focus. Put this mantra up in a place where you will see it every day. Say it ocen and use it in your markeQng copy.

Ques%ons: What is your company Purpose, Value, Mission, and Vision? When you combine all those statements into a one word Mantra or phrase, does it truly resonate with what you're trying to do with your company.

Example: “Data For Winners” Purpose: To help people enjoy sport more. Mission: To help athletes win and communicate through data and mobile tech. Vision: To be the top mobile app and socware company for team sports.

CHAPTER SIX


J2R BMC DETAILS

10. Cost Structure

Cost Structure accounts for all your expenditures. What does it cost to run your company? It may include raw goods, employee salaries, equipment, rent, electricity, water, heat, markeQng, Internet, servers, socware, permits, business fees, agorney fees, patent fees, taxes, etc.

Ques%ons: What are the basic itemized costs for your business? What expenses should you keep a close watch on?

Example: Servers, HosQng, Coders, Designers, Studio, MarkeQng, LLC, Technology Fees.

CHAPTER SIX


J2R BMC DETAILS

11. Revenue Streams

Each disQnct way your company makes money is a revenue stream. Selling products is one collecQve stream. Other streams might include non-‐product items like consulQng services, repair services, adverQsing space, or affiliate offerings.

Ques%ons: Where does the bulk of your revenue come from? Are other streams of revenue feasible at this 7me?

Example: 1. Upgrade for full suite of opQons (community chat, messaging, group assignment drills, video uploads, custom dashboard, branded team site.

CHAPTER SIX


J2R BMC DETAILS

12. Story

There are several key stories that you'll need to work on over Qme. They are your Customer Story, Brand Story, Personal Story, Product Story, Company Vision Story, Sustainability Story, and Data Story. First, focus on a concise Customer Story to nail the problem and soluQon. You will use this to communicate your company to others. What magers most in the beginning are stories that communicate the Triple-‐Bogom Line: a win for the customer (soluQons), the company (profit), and society (social equity).

Your Story and Mantra components take the longest to complete, so do what you can and move on. Lastly, in a meta sense, the several versions of your canvas you modify over Qme will tell a story as well.

Ques%ons: Do you have a good customer story that connects with your target demographic? Can you reduce it to a few lines and then one line? Does this story start with a problem and end with your solu7on? What is the business canvas story of this company so far, and how has it evolved?

Example: (Customer Story) "This company was started to help athletes achieve greater results and enhance the game. It began when I coached soccer and saw so many players struggle with . . ."

CHAPTER SIX


BMC OUTCOMES

Quite simply, there are three major outcomes to each tested canvas: 1) IteraQons, 2) Pivots, or 3) Quidng.

!  Itera%ons are small changes to your canvas (like a Qny price adjustment).

!  Pivots are big changes that will affect the enQre business (like discovering that you should focus on women customers instead of men). A Pivot is like a major turning point in a story: the hero might be compelled to move in different direcQon to keep progressing.

!  Qui0ng is what you do if you've gone through several IteraQons and a few big Pivots-‐-‐and you sQll can't get tracQon. It's where the story pre-‐maturely ends. It’s called an “exit” if you cash out, IPO, merge, get acquired, etc. These kinds of exits are posiQve, and they are also the beginning of something new.

Business Model Canvases can tell the story of a company, usually by trends. These trends point to progression, regression, or failure. In business, the big and ligle things move us toward that moment of truth. Since business is ocen unpredictable, all three outcomes are expected to happen, even for the most experienced entrepreneur. In every outcome, there is always something to learn.

CHAPTER SEVEN


PUTTING IT ALL TOGETHER

!  Most businesses fail so we need a beger process to build them.

!  To create a business from scratch, there are five disQnct phases: Research, Interpret, Respond, Create, and Grow.

!  StarQng a company begins with creaQng a Business Model Canvas (BMC), not a business plan.

!  There are many BMCs to choose from. The J2R BMC addresses all types of businesses.

!  There are basically 12 components to the J2R BMC: Segment, Sizeable Problem, SoluQon, Unique Selling Point, Unfair Advantage, Unique Lead GeneraQon, Minimal Viable Product, Metrics, Mantra, Cost Structure, Revenue Stream, and Story.

!  BMCs are a series of one-‐page documents that change over Qme. Individual components and whole canvases are meant to be revised and edited.

!  Companies and BMCs can either Iterate, Pivot, or Quit.

!  Businesses are like stories: they have all the elements of a heroic journey that could end in triumph and success.

CHAPTER EIGHT


NEXT STEPS

Each one of us has the potenQal to create remarkable value that is good for society and worth paying for. It’s up to you to discover and create soluQons for people: that’s how you create a profitable business. It is my hope that you now have the tools to begin this journey.

If you liked what you read, here’s what I want you to do next:

①  Get more detailed informaQon about other specific topics on the J2R blog at h3p://www.JourneyToRemarkable.com.

②  Send me an email at [email protected]. Tell me what you’re struggling with the most.

③  Say hello on Twiger. I like to promote and share tweets from my J2R tribe of over 30,000 people. @peyton503

④  Think of two other people who would really benefit from this ebook and share it with them.

⑤  Get started today!

CHAPTER NINE


ABOUT THE AUTHOR

My name is Arlie Peyton, but I usually just go by Peyton. I help people drac a business story that will lead to a remarkable life. For the past ten years, I’ve been a business consultant for over 220 global and micro-‐businesses. J2R is a blend of my strengths as a literature and business instructor. As the former state representaQve for vocaQonal educaQon in beauQful Oregon, I believe that people are one remarkable story away from making a vacaQon out of their vocaQon.

THANK YOU for taking the Qme to read this eBook. Cheers!

CHAPTER TEN


HI, I’M PEYTON.

JourneyToRemarkable.com 27

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