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So we're going to be talking about the business model.

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Cannabis, as I said, is a framework that can help you organise your thoughts and it will help you map out all the different aspects of your business.

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The business model canvas was developed by these two guys and they wrote a book called Business Model Generation.

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And if you want to take a look at the book, we have it at the library in the lunch spot.

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So the business model canvas looks like this. It consists of nine building blocks and you start from the centre, which is your value proposition,

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and then the right hand side is customer facing and revenue stream,

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while the left hand side is about how you create your value proposition and then what cost you money.

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So going through in a bit more detail, as I said, when you walk through through your canvas, you start from the middle.

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And then, Miguel, is your value proposition. What is the problem that you're solving?

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What is the problem you're addressing? What how do you create joy or alleviate pain for your customers?

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And then you move to the right hand side and you work on your customer segments.

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And for this segment, you have to be very specific.

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Don't write down just the generic customer segment.

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Think about it. What are the social characteristics of your customers?

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Are they college students? Are they young professionals?

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Are they single? Do they have families? Do they live in big cities or small towns?

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Just think about it and be as specific as you can.

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Channels. How do your customers will hear about your product and how are you going to reach them?

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Are you going to use mobile? Are you going to use the web?

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Do you need physical distribution channels? And finally on this on this side is the customer relationship.

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How do you acquire your your customers? How do you build a brand?

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How do you build loyalty?

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How do you make sure that when a customer comes that a customer will come back to buy your product instead of going to your competitor?

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How do you engage your customers more? And how do you grow your customer base?

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And this is about revenue stream. This is about what value are your customers paying from for?

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Where is your revenue coming from? Is it going to be a license subscriptions?

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Is it going to be a premium model or a freemium model?

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There are all different ways of doing things. Moving to the left side of the canvas.

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So this is about your cost structure. And here you need to think what costs you money?

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Is it your people? Is it the physical space?

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Is it materials that you need to buy? You need to consider both fixed costs and variable costs.

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Here, you need to consider your key activities. What are the core activities that require you to deliver your value proposition?

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Is it a problem solving? Is it manufacturing?

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Key resources. Your key resources are what people have to replicate in order to compete with you.

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It's what makes your business unique, and that can be all sorts of things like your code or a patent that you hold or your user base.

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But it can also be things like that, a unique set of skills that your team has.

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And then finally anything. So finally, the last blog is about partnerships.

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Anything you don't do yourselves, you you can outsource it.

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And you have to be very strategic with your partnerships. You don't need to do everything yourself.

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So, for example, if you need to district to physically distribute your product, you don't need to create a new distribution channel.

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You can partner with somebody that has already an established distribution network

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or if you want to sell your product online instead of starting from from scratch.

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You can partner with a platform that has already millions of users.

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So when you're working through this last segment of the canvas, be strategic and think what will help your business move forward?

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Some practical some practical tips on using the canvas.

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So print it out and put it on the wall. This will give you a good visual picture when you're working on your business.

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Don right on the canvas. Things will change a lot and quickly use Post-it notes.

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Going through years of customer segment, use different colours for each customer segments and start by exploring as many possibilities as you can.

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And then step back and think about it and pick one customer segment that you would like to start with and focus on

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that and take all the other Post-it notes out of the canvas and then move forwards and fill the rest of the canvas.

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Use for this part gives us less of sticky notes as possible.

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So be very specific. And you have to remember, focus on quick communication, not perfect representation.

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When you put your your notes, write one or two words.

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Nothing more. And keep in mind that every time one aspect of your business changes, it will affect other aspects of your business too.

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So every time you learn from your customers, every time you're acquiring new information,

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go back to your converse and rethink of all the different aspects of your business.

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The compass should be alive. Documents. It's not an exercise that you do once and you file away.

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So think about it this way. You go back and you change things.

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So you update the compass every time you have new information about your business.

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Now, like every other framework, the business model canvas has its limitations,

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and one of the limitations is that it doesn't take into account the external environment.

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And by external environment I mean threat of new entrants or threat of substitutions.

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What if somebody else makes a product that works as well as yours and is exactly solving exactly the same problem as you do?

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Will that sink your business or are you in a stronger position than they are?

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What if somebody else comes up with a substitution, a completely different product that solves the exact same problem as you?

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Well, that creates a problem for your business. Other things you need to think about is the bargaining power of suppliers and and buyers,

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but also competition among existing players within the market.

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So if you're entering a market that already exists, what is the situation between competitors?

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Do you have room to enter? Can you claim part of that market?

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For certain businesses. Other factors play a role too, like governmental laws.

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So for these type of businesses, you really need to keep an eye on regulation, taxation and trade policies.

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And as I said, the business model canvas, although it has its limitations, it's a very powerful tool and it's very simple to use.

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It will help you visualise your idea. It will help you organise your thoughts.

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And it will help you map out all the different aspects of your business.