About Course
This class explores how startups can design business models that are not only practical in the short term but also sustainable and scalable in the long run. Students will learn the fundamentals of business model design, from defining value propositions to structuring revenues and costs, while also examining strategies for scaling operations efficiently. Through real-world examples and analytical frameworks, participants will understand how to create models that deliver consistent value to customers, adapt to market changes, and support long-term profitability and growth.
Topics Covered
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Introduction to Business Models
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Scalable Business Models
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Characteristics of scalable models
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Key elements: automation, high margins, network effects, repeatable sales models
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Steps in Business Model Development
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Identifying value propositions
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Determining target markets
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Analyzing competitors
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Designing revenue streams and cost structures
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Value Proposition Design
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Target Market & Competition
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Market segmentation (demographics, psychographics, behaviors)
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Understanding direct and indirect competitors
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Revenue Models & Cost Structures
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Revenue streams: sales, subscriptions, freemium, licensing, etc.
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Cost structures: fixed, variable, semi-variable costs
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Key Resources, Activities, and Partnerships
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Identifying essential people, technology, and materials
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Building strategic partnerships to enhance efficiency and reach
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Channels of Distribution & Customer Relationships
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Sales and distribution channels (online, direct, wholesale, etc.)
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Customer acquisition, retention, growth, personalization, and support
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Measuring & Testing Model Performance
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Key metrics: CAC, CLV, churn, NPS, MRR, profitability, and market share
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Using feedback loops for model validation
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Iterating & Pivoting Business Models
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Adapting strategies based on customer feedback and performance data
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Revising propositions, targeting new segments, and pivoting when necessary