Review: Business Model Toolbox
May 18, 2011 
4 Comments
Are you starting a company? Have you drunk the customer development/product validation “Kool Aid” (we mean that in the nicest way possible)? If you have, you may have gotten stuck on how to go about “doing” customer development. Sure, there are firms that can help you, but most startups are lean and mean, and don’t have a lot of money for consultants.
Well, a new iPad app called the Business Model Toolbox (BMT to us) by Business Model Foundry GmbH may just be the answer for the do-it-yourself startup.
The Basic Canvas and Controls
Pros - Although there are some intellectual prerequisites, BMT’s ease of use is a big selling point (it costs just $30 on the App Store). BMT works by giving you a “canvas” that describes your business model in terms of important elements like Partnerships or Target Markets, but also in terms of Revenue and Cost. You “generate” your business model through customer development-style prep sessions and customer meetings using “notes” (which look like 3M’s PostIts). Adding “notes” to the Business Model Canvas is easy – and the BMT tools allow you to dive as deep as you’d like.
For example, when you create a Customer Segment, the tool suggests some basic questions you might begin by asking (“For whom are we creating value? Who are our most important customers, clients or users?”). It’s quick and easy to do some issue-spotting, and come up with a working description of your business.
Filling in the BMT Canvas
Cons – If you find “cons” to the BMT product, they’ll likely be in getting your head inside the Customer Development methodology, and navigating tricky business questions and market research. The tool helps you raise lots of questions – but like all tools (Excel for example), the numbers you plug in are up to you, and your model’s predictions of profitability are going to only be as good as your own rigor.
Rating: 5 out of 5 All in all, for the average entrepreneur, we’d highly recommend trying this product out. But first, take the time to understand the process you are getting yourself into, and you’ll be much better off for it.
Related posts:
- Review: Optoma Pico Projector Our review of the Optoma Pico Projector....
- Review: HP Wireless Mouse Sometimes we review products that make us want to call in sick so we can...
- Review: Quick Books Online Payroll App Intuit makes payday fun for everyone. The new Online Payroll app for iPhone is a...
- Review: Infinity Blade A new app for iPhone showcases the future of mobile gaming....
- Review: WordPress “Feedback” and Copy Template Features WordPress proves once again that it is the premier blogging source by rolling out two...
Derek,
I have not used this tool but I am a big fan of both the customer development methodology and the underlying description of the business model this tool was based on.
As in most uncharted situations, the questions are more important than the answers. Shameless Plug: The real value of a consultant is in helping you ask the right questions, not find the answers. End Plug.
If this tool helps with that, it’s a winner. The simplest definition I’ve found of a business model is “Lifetime Value of a Customer [minus] Cost of Customer Acquisition” but the tool you describe breaks the model down into more detail which is probably a good thing.
There is an online variation of that model here
http://www.ashmaurya.com/2010/08/businessmodelcanvas/
and a more simplified tool here
http://www.netprofess.com/canvas.php
Both are free but the prompting you describe is probably worth $30 for the app. It’s a lot less than I charge to help a client through the process [grin].
Thanks, John – we’ve used the BMT app for a couple sessions, and it turns out to be a little hard to use as an “in meeting” tool.
The model is also a little iPad bound – you can email out an image, but not a working copy of your model, as far as we can see. When working with a team, that can be a little frustrating.
A couple great links, courtesy of John S. Thanks!
The Business Model “Canvas” : http://steveblank.com/2010/10/25/entrepreneurship-as-a-science-%E2%80%93-the-business-modelcustomer-development-stack/
Redesigning the Startup Board Meeting : http://steveblank.com/2011/06/01/reinventing-the-board-meeting-%E2%80%93-part-1-of-2/