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

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

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

Show them the grumpy employees.

What are the costs of jerseys and warehousing and shipping and cleaning,

So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.

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

A red light shows the electricity is out of phase

To correct an out of phase machine, perform the following steps

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

So in month 1 you cater an even where the cost to you was 100

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

Those are entrepreneurial traits that you want to be nurturing.

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

Who are your key partners and suppliers?

And what do great customers do, great feeling customers?

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

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

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

Now, switch on the Machine's primary Breaker and move to the Control Panel and press POWER ON

But a consultant told us we need to manage our clients and not service them.

They give better service not worse, but better.

Again, your CAC declines. The idea is what can you do to make this very efficient?

Customer service meant actually talking to the people who came into your shop.

Much like ranking ranking pain, I want you to think about ranking gains.

Well, remember this was to acquire a customer.

One of the most important metrics to think about now that we have an end to end funnel is something called lifetime value and a lifetime value LTV is not your lifetime but your customer's lifetime.

That is what pain are you solving, what gain are you creating, and more importantly, who are your customers?

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.

The next thing is revenue streams.

If you have world's most perfect business model, investors would love to see this number much bigger than this number and so what you want to look for is a well balanced model that takes into account how much you need to acquire customers but how much ultimately you'll extract from them over the lifetime.

You're all familiar with the business model canvas.

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.

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?