Hello and welcome back to How to Start Your Business. Today we'll finish Module 2 on business models and value proposition by talking about the value proposition following the <i>canvas</i> methodology. The value proposition, although we've left it for the last session, is what makes the whole <i>canvas</i> methodology make sense. In fact, if the value proposition is not sufficiently attractive so as to ensure customers buy from us rather than from someone else, our key resources, our key partners, our capacity for revenue, efficient costs, will be useless. We always need to be thinking that if we don't deliver value the company doesn't make sense. Remember that the value proposition is something that ensures customers buy from us rather than from the competition. OK? To define the value proposition we use the <i>canvas</i> methodology and, in this sense, the first thing we need to do is identify our market segment. In this market segment we have three segments. We have the customer's work, what our customer usually does in their professional or personal life, the tasks they carry out. And these tasks take us to a series of joys and frustrations. With a good service or product, the market segment we're targeting will be happy, and there will be a whole series of things that are improvable. That's where we'll identify the opportunity to improve something that generates frustration and, in the case of joy, we'll also need to try to create more joy to improve the service and ensure they consider us rather than the competitor. Here's an example to clarify. We'll use a very simple example of a cinema. We'll notice that a cinema is there to have fun, to share, to discover a new place, to relax or escape from real life. That's normal, regardless of what cinema we're looking at. When you talk about customer segments and you ask them what are the joys they expect from a cinema they expect comfort, reasonable prices, to feel part of film history... The opinions from others may generate joy, the fact that everything is well-organised: ticket collection, reception, cleanliness and everything to do with the projection of a film in a cinema. On the other hand, frustrations might be that the cinema is far, not easily accessible, that it's expensive, that it has parking issues, difficult to access with public transport, too many people, and in the end the goal of relaxation becomes stress and frustration. Or limited options, few screens, or few screenings or no films they would want to see. Once we've defined this market segment with the main tasks, the expected joys and the most common frustrations, we need to translate this to our value proposition. We will notice in the case of the creators of joy it would be having a website of the film to obtain information before-hand so we can be well-informed. We might want better sound, or for the film to be in 3D, or more comfortable seating. All this would imply greater joy. In the case of the most common frustrations, that we looked at earlier, the fact that access was complicated, that it didn't have on-site parking, that we couldn't book in advance, or that seating was more comfortable than expected and that it lightened some of the typical frustrations that we might experience when going to the cinema. To finish off, obviously, what would the expected service be? The most common. One way of differentiating might be to screen the film on a larger screen than the ones we're used to. It would be a way to deliver a little more value versus the competition. A very basic example of a value proposition that needs to help us understand everything we expect from a value proposition that makes sense, that ensures customers come to us for our products or services and from here we translate it to the canvas methodology that we saw in previous sessions which we'll use to build our business model for it to be successful. Remember, there's no business model that's successful if we haven't previously generated a good value proposition that ensures customers buy from us rather than the competition. We've finished Module 2 on business models and value propositions. We hope it's been clear. On the web there's a lot more information. In the bibliography you'll see Alexander Osterwalder's book <i>Business Model Generation</i> where you can extend your knowledge of what we've learned in these videos and, if you have doubts, you can go back and look at the videos or get in touch. Thanks and until next time.