Building a Business Model

  A business idea becomes more useful when you can explain the whole system around it: customer, value, delivery, partners, costs and revenue. You will turn a tested idea into a one-page business model and identify the link most likely to break. By the end of this challenge you will: Define a specific customer and […]

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Building a Business Model

Your Mission
Turn your tested idea into a business model that explains who gets value, how it reaches them and how the venture sustains itself.
You will define customer and value, map channels and partners, connect costs with revenue and create a one-page business model.
The Shape of This Challenge
Discover
✏️ ️ Notice & question
Explore
️ Investigate & test
Create
✏️ Make & communicate
Reflect
️ Think & apply

Discover

Start with the customer and the value they actually receive.
Step 1

Who Is the Customer?

✏️ Customer focus · 8–10 mins
We are learning to identify a specific customer rather than designing for everyone.

A business model becomes clearer when you can name whose problem you solve, who uses the solution and who pays.

Your Task
  1. Write your current customer in one sentence.
  2. Separate user and payer if they are different.
  3. List the top three things this customer values.
  4. Write one reason they might choose not to switch from their current solution.
I can identify a specific customer, user and buying barrier.
→ This gives the business model a clear centre.
EntrepreneurshipCommunicationCritical Thinking
Step 2

What Is the Value Proposition?

️ Tighten the promise · 8–10 mins
We are learning to state the value of a solution clearly and specifically.

Features describe what the product has. A value proposition explains why the customer should care.

Your Task
  1. List three features of your idea.
  2. For each, write the customer benefit.
  3. Complete: For [customer], we help [job/problem] by [solution], unlike [current alternative].
  4. Remove any words that sound impressive but say nothing measurable.
I can write a clear value proposition focused on customer benefit.
→ This becomes the value block of your business model.
CommunicationEntrepreneurshipCritical Thinking

Explore

Work out how value reaches the customer and what the venture depends on.
Step 3

How Does Value Reach the Customer?

Choose your route · 10–15 mins
We are learning to identify channels, relationships and partners needed to deliver value.

A good product can fail if customers never discover, trust, buy or receive it.

Your Task
  1. Map the journey: Discover → Decide → Buy/Access → Use → Return/Recommend.
  2. Complete one research route.
  3. Choose one primary channel and one key partner or resource.
  4. Identify one point in the journey where the model could fail.
⚡ Quick Track

Study one comparable business. Identify how customers find it, how they buy/access it and one partner/resource that enables delivery.

Dig Deeper

Compare two different route-to-market models — for example direct-to-customer versus marketplace, subscription versus one-off, online versus physical — and explain which better fits your idea.

I can explain how customers discover, access and continue using the solution.
→ This gives your model a route to market and delivery plan.
EntrepreneurshipResearchSystems Thinking
Step 4

What Keeps the Model Alive?

️ Cost + revenue logic · 10–12 mins
We are learning to connect value creation with the resources and revenue needed to sustain it.

A business model is not complete until you can explain what it costs to operate and where money comes from.

Your Task
  1. List the three biggest likely costs.
  2. Choose a revenue model: one-off sale, subscription, service fee, advertising, commission, licensing or another justified model.
  3. Explain why the chosen model fits the customer’s behaviour.
  4. Identify one risk if revenue depends too heavily on one source.
I can explain the basic cost and revenue logic of a business model.
→ This prepares you for the deeper numbers challenge next.
EntrepreneurshipProblem SolvingBusiness Literacy

Create & Share

Connect the pieces into a coherent model ready for financial testing.
Step 5

Build the One-Page Business Model

✏️ Synthesise · Create · 25–35 mins
We are learning to connect customer, value, channels, resources, partners, costs and revenue into one coherent model.

The model should show how the parts reinforce each other rather than reading like unrelated boxes.

Your Task
  1. Include customer/user, problem/job, value proposition, channels and customer relationship.
  2. Add key activities/resources/partners.
  3. Add main costs and revenue model.
  4. Highlight the single riskiest part of the model.
  5. Choose one output below.
One-Page Business Model
1 page · structured canvas
⏱ 25–30 mins

Map the core business model and highlight the riskiest link.

Business Model Walkthrough
5 slides · maximum 30 words per slide
⏱ 30–35 mins

Explain customer, value, delivery, revenue/costs and biggest risk.

How This Business Works
90 seconds final runtime
⏱ 30–35 mins

Explain the full model as a connected system rather than a list of features.

I can create a coherent business model and identify its weakest assumption.
→ This is your finished mission output.
EntrepreneurshipProblem SolvingCommunication
Step 6

Reflect, Apply, Look Forward

️ Think or discuss · 5–8 mins
We are learning to reflect on how changing one part of a business model affects the rest.

The next challenge puts numbers underneath the model. Price, costs and volume may reveal that a promising model needs to change.

Your Task
  1. Answer the reflection prompts.
  2. Name the weakest link in your model.
  3. Write one number you most need to estimate next.
Reflect

Which part of the model changed most while you built it?

Apply

How could this one-page model help explain a club, charity or creator business?

Look Forward

Which new business models might become possible as AI reduces the cost of creating or delivering services?

I can explain how the parts of a business model depend on each other.
→ You now have a business model ready for financial testing.
ReflectionEntrepreneurshipSystems Thinking
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TOOLKIT

Choose Your Tools

Use the tools available to you. Strong thinking matters more than a particular app.

Model

Use a Business Model Canvas-style layout, simple table or sticky notes to map customer, value, channels, costs and revenue.

Research

Check how comparable businesses reach customers and make money. Do not assume the same model will work in your context.

Create

Use a one-page business model, slides or short business explainer.

Educator / Parent Notes

Age, Stage and Prior Learning: Designed for S1–S3. It can follow the earlier idea-testing challenge or use a teacher-supplied venture.
Before You Start: Avoid overloading learners with formal business-model terminology. Keep returning to the question: how does value move through the system?
How to Open This: Ask: “Who uses Spotify, who pays Spotify, and who else gets paid?” Use a familiar model to show that user and payer can differ.
Scheduling: Steps 1–4 need 35–45 minutes; Step 5 needs 25–35 minutes.
If a Pupil Gets Stuck: Use a reduced canvas: Customer / Problem / Value / Channel / Cost / Revenue. Provide one worked example.
For Fast Finishers: Ask learners to redesign the same venture with a different revenue model and explain what else in the system must change.
Marking Guidance: Look for internal coherence, customer specificity, benefit-focused value proposition, plausible channel/revenue choices and recognition of a weak assumption.

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