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Rule No. 5: No Business Plan Survives First Contact with Customers So Use a Business Model Canvas

An empty canvas to paint on. A mirror, reflecting only what others care to project. A bolt of fabric that can be custom tailored to.

Rule No. 5: No Business Plan Survives First Contact with Customers So Use a Business Model Canvas There’s only one reason for a business plan: some investor who went to business school doesn’t know any better and wants to see one.

Pretty, yeah, sure, but in a medium, nondescript way. And yet, my medium mediumness is the perfect blank slate to fill. An empty canvas to paint on. A bolt of fabric that can be custom tailored on – well. I'm sure everyone's tracking the metaphor.

THE CUSTOMER JOURNEY CANVAS At the online touchpoint of the book we provide you with a canvas developed to support you when designing services. You can use it not only for yourself to get a quick overview of certain service processes, but also with providers for a self-portrayal and with customers and other stakeholders to explore and evaluate services. Besides visually simplifying existing services, you can also use it to sketch service improvements and innovations. It supports many of the tools presented later in this book. The Customer Journey Canvas is available under cc license on our website. Try it, adapt or modify it, take a snapshot and share how you use the canvas through our website. Watch out for service design thinking! NOTE:

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To fundamentally shift the strategy canvas of an industry, you must begin by reorienting your strategic focus from competitors to alternatives, and from customers to noncustomers of the industry.

Embrace Efficiency, Elevate Flavor: Smart Kitchen Tools for Culinary Adventurers The kitchen, once a realm of necessity, has morphed into a playground of possibility. Gone are the days of clunky appliances and tedious prep work. Enter the age of the smart kitchen tool, a revolution that whispers efficiency and shouts culinary liberation. For the modern gastronome, these tech-infused gadgets are not mere conveniences, but allies in crafting delectable adventures, freeing us to savor the journey as much as the destination. Imagine mornings when your smart coffee maker greets you with the perfect brew, prepped by the whispers of your phone while you dream. Your fridge, stocked like a digital oracle, suggests recipes based on its ever-evolving inventory, and even automatically orders groceries you've run low on. The multi-cooker, your multitasking superhero, whips up a gourmet chili while you conquer emails, and by dinnertime, your smart oven roasts a succulent chicken to golden perfection, its progress monitored remotely as you sip a glass of wine. But efficiency is merely the prologue. Smart kitchen tools unlock a pandora's box of culinary precision. Smart scales, meticulous to the milligram, banish recipe guesswork and ensure perfect balance in every dish. Food processors and blenders, armed with pre-programmed settings and self-cleaning prowess, transform tedious chopping into a mere blip on the culinary radar. And for the aspiring chef, a sous vide machine becomes a magic wand, coaxing impossible tenderness from the toughest cuts of meat. Yet, technology alone is not the recipe for culinary bliss. For those who yearn to paint with flavors, smart kitchen tools are the brushes on their canvas. A connected recipe platform becomes your digital sous chef, guiding you through each step with expert instructions and voice-activated ease. Spice racks, infused with artificial intelligence, suggest unexpected pairings, urging you to venture beyond the familiar. And for the ultimate expression of your inner master chef, a custom knife, forged from heirloom steel and lovingly honed, becomes an extension of your hand, slicing through ingredients with laser focus and lyrical grace. But amidst the symphony of gadgets and apps, let us not forget the heart of the kitchen: the human touch. Smart tools are not meant to replace our intuition but to augment it. They free us from the drudgery, allowing us to focus on the artistry, the love, the joy of creation. Imagine kneading dough, the rhythm of your hands mirroring the gentle whirring of a smart bread machine, then shaping a loaf that holds the warmth of both technology and your own spirit. Or picture yourself plating a dish, using smart portion scales for precision but garnishing with edible flowers chosen simply because they spark joy. This, my friends, is the symphony of the smart kitchen: a harmonious blend of tech and humanity, where efficiency becomes the brushstroke that illuminates the vibrant canvas of culinary passion. Of course, every adventure, even one fueled by smart tools, has its caveats. Interoperability between gadgets can be a tangled web, and data privacy concerns linger like unwanted guests. But these challenges are mere bumps on the culinary road, hurdles to be overcome by informed choices and responsible data management. After all, we wouldn't embark on a mountain trek without checking the weather, would we? So, embrace the smart kitchen, dear foodies! Let technology be your sous chef, your precision tool, your culinary muse. But never forget the magic of your own hands, the wisdom of your palate, and the joy of a meal shared with loved ones. For in the end, it's not about the gadgets, but the memories we create around them, the stories whispered over simmering pots, and the laughter echoing through a kitchen filled with the aroma of possibility.

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I believe the major risk facing most efforts is value risk. On a startup canvas, this shows up under solution risk—discovering a compelling solution to customers. A solution that your customers will choose to buy and use.

The local market The local village or town market is often open-air, with canvas-covered stalls. The traders sell a variety of goods, from salami and prawns (shrimps) to feather dusters and straw hats. The customers meet to exchange news and talk about local affairs. This market, with a nut stall in the foreground, is in a village near Rome. Supermarkets are gradually becoming more common in large Italian towns, as they are in other European countries.

transition into some examples that put HTML5 in action: A graphing calculator to display algebraic equations on the Canvas A children’s finger-painting application for drawing pictures on the page A geolocated work of fiction customized with details about the reader’s current location An audio-enabled glossary that lets you click to hear the pronunciation of each term Embedded video content within instructional text to supplement a lesson

In late 2014, Minecraft creator Markus “Notch” Persson sold his company to Microsoft for $2.5 billion. Notch published a depressive justification for his desire to recede from public life thanks to the impossibility of satisfying the onslaught of demands from his customers and fans—another thing that can turn on you, it turns out. Then he bought a $70 million Beverly Hills mansion, along with all the furnishings, accessories, art, even the cases of champagne and tequila, even the ultraluxury vehicles the real estate speculator who built the place had installed within its sprawling garage for staging. Notch, the man who made a blank canvas world in which you could make anything, used the spoils to buy a prepackaged, off-the-shelf billionaire’s life. As for his fans, undeterred, they dutifully reconstructed a version of the $70 million mansion in Minecraft.16 It’s an addict’s logic: only one more hand, only one more hit, then I’ll be satisfied. Then I can stop. But, of course, that’s not how addiction works. With every repetition, the effect of a compulsion reduces, requiring even more stimulation to produce formerly intoxicating results. Such

I had thought photography could reflect the truth of a woman's beauty. But after seeing these horrible prints, I decided it was an imperfect art, impossible for the photographer and sitter to control. Painting, on the other hand, I began to believe, could reveal something greater than reality. In the right hands with the right chemistry between artist and sitter, painting could illuminate a higher truth. More to the point, it had the power to immortalize. A beautiful woman captured on canvas is eternally youthful, eternally adored. I thought of Shakespeare's description of Cleopatra: "Age cannot wither her, nor custom stale her infinite variety.

Think of your first version of the business model canvas as the starting point showing the hypotheses that must be confirmed in face-to-face or online interaction with customers.

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On the other hand, when a company’s value curve lacks focus, its cost structure will tend to be high and its business model complex in implementation and execution. When it lacks divergence, a company’s strategy is a me-too, with no reason to stand apart in the marketplace. When it lacks a compelling tagline that speaks to buyers, it is likely to be internally driven or a classic example of innovation for innovation’s sake with no great commercial potential and no natural take-off capability. A Company Caught in the Red Ocean When a company’s value curve converges with its competitors, it signals that a company is likely caught within the red ocean of bloody competition. A company’s explicit or implicit strategy tends to be trying to outdo its competition on the basis of cost or quality. This signals slow growth unless, by the grace of luck, the company benefits from being in an industry that is growing on its own accord. This growth is not due to a company’s strategy, however, but to luck. Overdelivery without Payback When a company’s value curve on the strategy canvas is shown to deliver high levels across all factors, the question is, Does the company’s market share and profitability reflect these investments? If not, the strategy canvas signals that the company may be oversupplying its customers, offering too much of those elements that add incremental value to buyers. To value-innovate, the company must decide which factors to eliminate and reduce—and not only those to raise and create—to construct a divergent value curve. Strategic Contradictions Are there strategic contradictions? These are areas where a company is offering a high level on one competing factor while ignoring others that support that factor. An example is investing heavily in making a company’s website easy to use but failing to correct the site’s slow speed of operation. Strategic inconsistencies can also be found between the level of your offering and your price. For example, a petroleum station company found that it offered “less for more”: fewer services than the best competitor at a higher price. No wonder it was losing market share fast.

I turned and flipped the latch on the door, then pulled hard on the handle, stumbling over the threshold into the fresh air. I would have fallen in the dirt for the second time that day except that someone standing outside caught me. Terrified that my escape was being thwarted, I struck out at whoever it was, feeling a sharp pain when my fist connected with the person’s jaw. “Empress, you hit hard!” a male voice exclaimed, then he captured my arms and trapped them behind my back. By the strange expletive he had used, I knew him to be Cokyrian--my luck was golden. “What’s going on here?” The butcher staggered into the doorway, squinting in the sunlight. “Your girl’s a thief,” he muttered at sight of the man who held me, sparing a glower for me as though warning me to be quiet. I ground my teeth and looked away, intending to do just that. Now that I had stopped struggling, the Cokyrian soldier released me, and I considered whether or not to run. Then I saw who had been restraining me--Saadi, the man with whom Narian and my uncle had dealt after my failed prank. There would be no point in running if he remembered who I was. “My girl?” Saadi repeated, his pale blue eyes calculating. “She is no Cokyrian. Besides, I would expect you to show any comrade of mine more respect than that.” “My apologies,” the butcher forced himself to say, and rage filled me at his newly respectful attitude. “She broke into my store and I assumed from her clothing…I also assume you’ll see her punished for her crime.” “You were about to punish her yourself, weren’t you?” Saadi scrutinized me, noting the red marks around my wrists and perhaps the beginnings of the bruises I would have across my mouth. “In Cokyri, you would be killed for what you did to her--what you tried to do.” “It’s good we’re not in Cokyri then,” the butcher sneered. Saadi’s jaw clenched, and he seemed to be fighting a deep urge to pummel the merchant who stood before him. “I should take you to join the men at the gallows.” “I would welcome it.” “I can see why,” Saadi coldly retorted, with a subtle look up and down at the heavyset man. “But I’m afraid the lack of your business might dampen the economy in the province, and that is something my sister would frown upon. She’ll be disappointed, though--she does so enjoy seeing men like you hang.” “And I enjoy seeing women in skirts as God intended.” Another strained moment passed, then Saadi laughed. “Perhaps if your God had paid less attention to clothing and more to abilities, you and your kind wouldn’t be in this position right now.” The butcher shifted uncomfortably, and Saadi quickly dispensed with him. “If you want me to arrest her for thievery, I’ll also arrest you for assault. So I would advise that you go back to your meat and your customers, may they be few.” The man did not need to be told twice. He slammed the door in our faces, and I could hear the lock click into place. It was then that I noticed the canvas bag at Saadi’s feet. He must have seen flight in my eyes, for he started running at almost the same moment I did.

Maruti was called upon to take a difficult decision soon after the first bookings had been made. The pick-up truck, a purely commercial vehicle that was part of the original project along with the 800 and the van, got a very poor response—bookings of just 2,000. In the project report, the pick-up truck was expected to account for 20 per cent of total production. The booking response showed that the customers did not want this vehicle, and manufacturing it in small volumes would not be viable. The company realized it had made a serious error of judgement in not recognizing that petrol-driven commercial vehicles could never compete with diesel-driven ones, as the government-determined price of diesel was much lower than petrol. SMC had estimated that the pick-up truck would be very successful because of good experience in other Asian countries. In Pakistan, it was used for rural transport, after being fitted with a canvas top, and sold in large numbers. However, India had a vehicle called the Tempo, which carried a load slightly more than the pick-up truck and ran on diesel. The highly value-conscious Indian customers immediately realized that the pick-up truck would always lose out to the Tempo, because of the Tempo’s lower operating costs. Realizing that the truck would be a failure, Maruti decided to drop its production and to write off the costs incurred till then in tooling and other related activities. This experience was a reminder to Maruti on the importance of correctly assessing the behaviour of Indian customers, and the dangers of transferring experience of other countries to India, without careful examination.

The tools we’d recommend you look at first are Sketch, Figma, Balsamiq Mockups, Framer X, and UXPin. However, there are a crazy number of good alternatives, including…taking a very deep breath…Adobe Brackets, AppCooker (for iOS apps), Appery.io (outputs code for mobile and responsive apps), Atomic.io, Axure (a complex, sophisticated wireframe tool suite), Balsamiq Mockups, Canva, Craft, Creately, draw.io, Fireworks, FlairBuilder (for apps), Flinto and Flinto Lite, Fluid (

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