Read Part 2 of The B4T Canvas Here.
Step 3: Can we fulfill it?
Step 3 begins to describe the operations side of the business. Operations is another way of saying, “How will we deliver value?” With this template, we also want to determine if we actually can. In order to deliver a product or service to our customer, we need to determine what each variation will be and the resources needed to create said products and fulfill said services. Its all good and fun to imagine our skyrocketing sales and beautiful storefront, but if we cannot deliver, no customers will return. If no customers return, we’re either running a Ponzi scheme or working in tourism.
Products/Services. If you are anything like me, you probably thought of your products or services before step 2. After all, isn’t your solution a product or service anyway? And that was in step 1. I know, but this is very different from the conversation about your UVP. Let me explain.
The Unique Value Proposition of a convenience store might be that it has an exclusive partnership with the cities infamous French bakery to sell in this part of town. That’s unique, and in fact it is also what we call an “unfair advantage” because it cannot be copied by competitors. However, it is pretty intuitive that French baked goods are not the only product this convenience store will have. It may have hundreds of SKUs and an elaborate inventory management system to keep track of everything.
For the purposes of this section, it isn’t necessary to list every single product or service that you will offer. It is, however, the place to describe your primary variations. The convenience store will have French bakery items, bottled beverages, snacks, candies, and toiletries. The hair salon will have men’s cuts, women’s cuts, dyes, beard trims, perms… and a UVP that states, “We’re open all day, 6am to 10pm.”
Key Resources. Resources are an elusive bunch to tackle. The term used in the subtitle here is “assets,” and it’s important that you understand the breadth of what that entails.
In order to deliver your product or service, you might need a building, a delivery vehicle, or equipment like an espresso machine. However, you also might have intangible assets such as partnerships, intellectual property, brand recognition, or reputation. These are harder to put a finger on, but they may in fact be your company’s UVP. For example, in the case of the convenience store described in the products/services section, an exclusive partnership with a French bakery is the UVP of the business. This “asset” may or may not show up on a balance sheet’s assets. Nevertheless, it is of critical importance to the company’s success.
If you are familiar with the Business Model Canvas, the large section devoted to “key partnerships” is nested here under key resources. Not only does this section determine the assets your company needs to succeed, but it also begins to bring into focus the capital requirements your start-up will have.
Does your company need additional capital for its transformational plan? A successful entrepreneur may focus on cutting costs, but if your transformational plan is focused on ministering to your staff, you might want to invest heavily in your break room. If your business is going to host discipleship or church gatherings, you might have additional capital requirements. Consider the vision of your transformation plan thoroughly as you begin to define key resources for the company.
Read Part 4 of the B4T Canvas Here
