Your business as a "theatre production"
This is the area of the stage that makes the show in the frontstage possible. Most customers will not see who is back here or what they are doing. The backstage makes the show possible and drives costs.
Business Theatre Backstage
The backstage of your "business theatre" consists of the following 4 startup building blocks:
Source of information below: Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers
What you need in order to be able to deliver on your business proposition
The Key Resources Building Block describes the most important assets required to make a business model work
Every business model requires Key Resources. These resources allow an enterprise to create and offer a Value Proposition, reach markets, maintain relationships with Customer Segments, and earn revenues. Different Key Resources are needed depending on the type of business model. A microchip manufacturer requires capital-intensive production facilities, whereas a microchip designer focuses more on human resources.
Key resources can be physical, financial, intellectual, or human. Key resources can be owned or leased by the company or acquired from key partners.
What you need to do to implement your business model
The Key Activities Building Block describes the most important things a company must do to make its business model work
Every business model calls for a number of Key Activities. These are the most important actions a company must take to operate successfully. Like Key Resources, they are required to create and offer a Value Proposition, reach markets, maintain Customer Relationships, and earn revenues. And like Key Resources, Key Activities differ depending on business model type. For software maker Microsoft, Key Activities include software development. For PC manufacturer Dell, Key Activities include supply chain management. For consultancy McKinsey, Key Activities include problem solving.
Who will participate in the business and why
The Key Partnerships Building Block describes the network of suppliers and partners that make the business model work
Companies forge partnerships for many reasons, and partnerships are becoming a cornerstone of many business models. Companies create alliances to optimize their business models, reduce risk, or acquire resources.
We can distinguish between four different types of partnerships:
The costs involved in deliverying on your business model
The Cost Structure describes all costs incurred to operate a business model
This building block describes the most important costs incurred while operating under a particular business model. Creating and delivering value, maintaining Customer Relationships, and generating revenue all incur costs. Such costs can be calculated relatively easily after defining Key Resources, Key Activities, and Key Partnerships. Some business models, though, are more cost-driven than others. So-called "no frills" airlines, for instance, have built business models entirely around low Cost Structures.
Are you able to define how your business functions? Do you know what the most important parts of your business are that create value? Are you struggling to start a business?