01
Front
What does a business model describe?
Back
A business model explains how an organization creates value for customers, delivers it, and captures enough value to sustain the business.
Free Online Flashcard Deck
3 Business Models and Value Propositions Free Online FlashCards
Study 3 Business Models and Value Propositions with 12 free online flashcards. Review key terms, definitions, and concepts with this interactive flashcard deck.
12 cards
02
Front
What does a value proposition explain?
Back
It explains which customer the business serves, what meaningful need it addresses, and why its offer is preferable to alternatives, including doing nothing.
03
Front
In customer analysis, what are jobs?
Back
Jobs are the tasks or goals customers are trying to accomplish.
04
Front
What should a strong value proposition emphasize?
Back
Focus on customer outcomes, not merely product features; connect the offer to relieving important pains or producing desired gains.
05
Front
What are the nine elements of the Business Model Canvas?
Back
Customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partners, and cost structure.
06
Front
How does a one-time sale earn revenue?
Back
The customer pays for each product or service. A key question is whether each sale covers customer acquisition and delivery costs.
07
Front
Why is revenue not the same as profit?
Back
Revenue is not profit. Profit depends on revenue exceeding the costs of acquiring customers and creating and delivering the offer.
08
Front
How should a venture prioritize assumptions to test?
Back
Rank them by uncertainty and by the damage they could cause if false, then test the riskiest assumptions first.
09
Front
In customer analysis, what are pains?
Back
Pains are the costs, frustrations, risks, or obstacles customers encounter.
10
Front
In customer analysis, what are gains?
Back
Gains are the outcomes or benefits customers want.
11
Front
What is a key question for a subscription model?
Back
Customers pay repeatedly for ongoing access or service. The business must determine whether they stay long enough to justify the cost of acquiring them.
12
Front
What challenge should a usage-based model address?
Back
Payment varies with consumption. The business must be able to measure and bill usage while considering whether revenue will be predictable enough.