Greetings and welcome to session 2 of Creating Technology Startup. In this session, we'll be talking about how to construct a business model and what are the elemental components of the model, which strive to map how the business actually earns money and delivers value to the customers. We'll also talk about a concept pitch and this is different from the full business plan pitch. Here, we're just introducing a concept and we want to solicit for ideas and perhaps recruit members to join our team. And we'll also, in this session, introduced the concept of the lean business plan. It's something we'll be developing over the next few videos and next few sessions. But we'll just here be introducing the concept and so we begin to think about these things. As we move through the various different aspects of looking at how we're starting the business, and the tools, and resources that are available to support us doing that. So let's go ahead and jump in again, we're going to be constructing business models. We're going to learn how to apply what we call the lean canvas, which is basically a tool for assessing the model and and capturing the data for understanding that and communicating it. And we'll be introducing the lean business planning process as well. So, go ahead, yeah, so you might recall, we had talked about how impact something we started back in 5091 and eventually working forward towards constructing our vision and our mission. Clarifying and articulating our competitive advantage, understanding our value proposition to the customer. And how that all translates into a business model and ultimately the business model driving a strategic plan, which is what will be developing in time. And reframing the model itself as being the structure or the methods of the resources and processes. That enable the company to create value to harvest that value and to distribute it, part to the customer and part to the company as well. So we think about the business model, there are four components and the first two have to do with product and service. So what is the solution that's being delivered, and what is the value that is a part of that solution that comes with that? And who are the customers? What are the, how do we describe the segment of the market that this product or service is addressing and that is willing to pay for the solutions that we're offering? What are the infrastructure, what is the underlying resources and operating mechanisms necessary to deliver the product and service and value to the customers? And what are the capital requirements to think of it like the gasoline in the tank that enables all of this to happen. So as we go forward, one way to consider that is to look at what are the core components associated with the model, and the first three here we have value proposition. So we worked on that before we want to summarize that and get very, very succinct, very clear about the need that we are addressing. The problem that we're addressing and the benefits offered by our product or service and the market segments, we've gone through that segmentation. How do we determine the specific groups of customers that we're addressing, and the channels and the channels, the distribution channels of the marketing channels. This is what describes how the customer accesses our product or service and how it's ultimately delivered to them. And then there are relationships with the customers they're both transactional and enduring. So we have a transaction, we exchange money for service or product, but there's also a relationship, a follow up, perhaps a second sale. A support service, perhaps a warranty, and certainly a communication to other potential customers in the market segment. And what key activities are associated with operating to deliver on our products and services and value to the customer. And what resources specifically are needed, and how much money and what skills and knowledge, etc. So what you begin to see here is that the business model canvas at what we're calling it, is a tool for gathering the essential information that describes how our business operates, and how we deliver value to our customer. So we want to understand the key partners involved in our network, the revenue flow. How does money actually exchange for value, and what is the cost structure in terms of creating and delivering that value? Well, we want to just be clear that what all the questions that we need to ask for each of these different components of the business model. And to do this, there's a useful tool called the business model canvas, and the business model canvas is just sort of think of it like a bucket. It's a bucket to capture the information and force you to very succinctly and very briefly yet with sufficient detail capture each of these elements related to the business model. Now what's important to recognize and I'll reinforce this a couple of times as we go along, and especially later when you get to the writing of the business plan. Is that the business model canvas is a sort of a capture tool. It's not necessarily something, in some instances we may put some version of this on a power point presentation. But not very likely unless it was extremely simplified and the text were very high level and easy to read. But for the purpose the data collection tool to support, you want to capture the information in some detail. So think about, for example, the value proposition, some of the questions you might ask, what are the customer problems that are being solved? What needs are being addressed, and what value is actually being delivered? And if we think about the customer segments, you know what are the target segments? What is the persona of how we might capture the essential persona of our target customer, and can we link this to the value that actually is being delivered? And think about the channels, how will the customers access the product, how we communicate and distribute and what are the sales methodologies? How might we manage our customer relationships, to maintain and grow some interactions so they come back to buy more of our products and services? And what are the essential activities in our operation and our business, with regard to manufacturing, warehousing, distributing or other core aspects of how we do what we do in order to deliver value to our customer? And the key resources that are needed, how might we think about the startup funding and operating cash flow? I mean, these are basic things, but we need to have a clarity that, in order to operate our business model, these are essential. And then who are the partners that may be a part of our value delivery? Partners in terms of suppliers, distributors, even those who support us, lawyers, accountants or champions? And when we think about the revenue structure, can we articulate the revenue model? And this is something we'll be talking about in more detail, but it's a critical element of our business model. And then what are the sources and the flow of revenue, and briefly, what is our pricing strategy for our product or service? What are the critical cost structures to operate, and what our fixed cost, for example, and variable cost. So this is forcing you to answer these questions very succinctly and very briefly and accurately. And then this tool will be used later, as a way to essentially, begin to address and describe in a narrative format and the business plan what the business model is. For now, that brings us to the end of video one of six for session two, I'll see you later for video, too.