The Business Model That Will Be Used for the Venture
The business model that I will be using for my digital art venture is the Business Model Canvas (BMC). It was proposed by Osterwalder based on the extensive academic literature on business models (Greenwald, 2012). It comprises nine elements: customer segments, value propositions, channels, customer relationships, revenue streams, key activities, key resources, key partnerships, and cost structure (Cowan, 2013). These components are the key drivers of a business and, according to the BMC, they should be outlined on one page, providing entrepreneurs with a focused view of their business objectives.
The Reason for Selecting the Business Model
There are several reasons why the BMC is suitable for my digital art venture. First, the generic nature of this model allows for its use in a wide range of industries (Carter & Carter, 2020). Second, the model incorporates the essential elements necessary for a business to succeed in the market. According to Ladd (2018), who performed an empirical evaluation of the BMC, such BMC elements as customer segments, value proposition, channels, key partners, and key activities were significant predictors of the success of ventures. These elements should be particularly emphasized at the initial stage of business development. Finally, the BMC has the advantage of being shrunk to one page, as compared to a traditional business plan that covers 30-50 pages (Maurya, 2010). This format helps entrepreneurs and their teams to stay focused on their business goals, facilitates the understanding of the business model, and clearly articulate their hypotheses (Cowan, 2013; Maurya, 2010). Thus, the outlined advantages of the BMC determined the choice of this model.
The Model’s Fitness for the Purpose and Goals
The BMC fits the purpose and goals of my digital art venture. The purpose of my business is to provide interested customers with digital artworks and promote the appreciation of art in ways other than mainstream channels. Research shows that BMC is suitable for the arts industry with a slight modification in the value proposition, which should include art products, artistic services, and artistic identity (Carter & Carter, 2020). My goals as an entrepreneur are to engage with customers to understand their needs and develop products that meet their expectations. With the help of the BMC, I will be able to identify my key activities, value proposition, and channels for promoting it, as well as customer segments and the ways of interacting with them.
References
Carter, M., & Carter, C. (2020). The creative business model canvas. Social Enterprise Journal, 16(2), 141-158. Web.
Cowan, A. (2013). The 20 minute business plan: Business model canvas made easy. Cowan+. Web.
Greenwald, T. (2012). Business model canvas: A simple tool for designing innovative business models. Forbes. Web.
Ladd, T. (2018). Does the business model canvas drive venture success? Journal of Research in Marketing and Entrepreneurship, 20(1), 57-69. Web.
Maurya, A. (2010). How to document your business model on 1 page. Web.