By now, you're intimately familiar with the business model canvass.

So in our last lectures we talked about value proposition, customer segments, distribution channels, customer relationships get, keeping and growing customers.

So in the last lecture, you remember the business model canvas, all the 9 components of a startup.

What are all the pieces? Well let's take a look.

Now we finally come to the last part of the business model canvas.

In fact, every major household name is allowing you to interact with their products on a daily basis all the way from Smart Cars to Prada to Ray Ban, for example.

They run something called the loyalty programs.

They need to understand the external environment and they need to come in.

You could charge twice the current rate for what I provide, and your customers would pay it.

And the test is one, will it do the job?

I can't emphasize enough that the business model canvas is just a start.

Who are your key partners and suppliers?

And product market fit just simply says what is the match between what you are building and what customers need and want, and who are those customers.

The next is channels.

More than likely we'll make money from royalties and commercial licensing, etc.

And this start up is on the road to actually building something that customers might want.

And in value proposition, the goal of this is to find out that minimum viable product.

They attract customers by offering high quality goods.

So on day one, these were their initial hypothesis coming into the class.

In customer relationships all the get keep grow metrics, some of which we talked about, some of which you'll discover, what were the customer acquistion costs?

Now if you remember we started here on the left. We didn't earn and paid media.

Those children are potential customers.

Why you're doing all this is to define the minimum viable product, or sometimes called the MVP for short.

They give better service not worse, but better.

You're all familiar with the business model canvas.

In particular, because the idea is that if you analyze the data, that data will tell you something about your customers and then you can better serve your customers and then your profits will go higher.

The better we understand these illnesses, the better the treatments we can provide, and the better the treatments we can provide, the more we can offer people care, and not have to use force.

That is they were beginning with a series of hypothesis about their customer archetype.

Now, what s interesting is if you remember value proposition describes not only the features but also the pains and gains that they see, that they ve actually craved for the customer and that the goal is to figure out what the MVP is.

Instead of pricing based on cost,

Many companies have huge databases of customer information.

They could tell you that I want bigger, faster, cheaper status quo.

You cater an event where the cost to you was 200

I have no idea where my husband is.

As was simulated, the value proposition includes all the features of your product but also the pains and gains you're solving for the customer segment and that's where the market goes.

And that commission, at least historically, has been 7 of the offering.

Because no one, and that was a constant problem...

It's a big idea.

Apple is one of the few, truly cares.

That's your job as the facilitator and coach.

We've got customers.

Who do you do that for?

Defense department's largest contractor.

He's not the client.

So one of the interesting equations for every startup is that