The Business Generator

Consider these 11 points when planning a product or service

The Business Generator

3 minutes reading time

The Business Generator is a modified version of the Business Model Canvas. It helps include all important criteria when planning a product or service and think about all key topics in advance. The Business Generator can be used as a precursor to a business plan.

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1. Key Partners

Document whether and which partners are needed for the product or service. These could be suppliers, advertising partners, etc.

2. Activities / Methods

Record the main tasks needed to offer the product or service as planned and provide the desired benefit to the customer.

This also includes recurring tasks essential for the business's success.

3. Customer Channels

Consider how the product or service can be offered. What options are there for potential customers to notice the product/service? Possible channels include a website, advertising on social media platforms, TV/radio ads, etc.

4. Customer Segment

Note which target group(s) should be addressed. This should be clear early on to tailor the service to their needs and expectations.

5. Expenses

At the start of planning, it's crucial to know your expenses well. A cost structure can help keep track. This includes fixed and variable costs and any "spontaneous" expenses that may arise initially.

6. Product / Service

Detail what product or service will be offered. It's useful to describe different variants if they exist. A product variant is a modified form of the original product.

Also, note the product's features (e.g., size, color, shape) or the service (individuality, special materials or tools, unique expertise).

It's important to note unique selling points (how does this product or service stand out from the competition?).

7. Values

Note what values should be conveyed. What does the product/service stand for? How should it impact the target group? Values can include quality, environmental awareness, individuality, family-friendliness, etc.

How these values are actually conveyed is a further marketing question not answered here.

8. Revenue

List all the revenue to be generated. A price calculation is needed, and the potential number of customers should be forecasted. Only with these two factors (price and customer number) can potential revenue be calculated.

Consider what revenue opportunities exist. Are there other income sources besides direct product sales (like consulting, training, subscriptions, etc.)?

9. Resources

Note the resources needed. What is required for the product/service? Where do these resources come from? Document any needed storage space, capacity, personnel, and capital.

10. My Win

Define your personal "why." Of course, you want to profit from your product or service. But this field is not about financial motivation.

The personal why could be improving the target group's quality of life or optimizing an existing product. Social or societal goals can also be noted here.

The clearer the goal, the better you can build and expand your business model.

11. Customer Benefit

Answer what needs the product or service fulfills for the customer. Based on this, define the customer benefit. This could be security, time savings, comfort, or cost savings. Being aware of this helps prepare for sales conversations. A customer will only buy a product or service if convinced of its benefit.