Step 1: Structure around the Business Model Canvas concept
Your individual presentation should be a ‘business pitch’ structured around the Business Model Canvas concept.
The presentation or pitch does not need to cover all elements of the BMC. Rather, you should create a pitch that aims to convince the audience (as potential investors) that your lean start-up venture is a worthwhile investment. Consider your audience as venture capital or ‘angel’ investors.
below is the BMC with my lean start up venture
Introduction
The Business Canvas Model (BMC) is a valuable tool that provides a visual representation of a business model. It maps the ‘logic of how a company intends to make money’ using 9 essential building blocks (A. Osterwalder & Y. Pigneur 2010). This report details the BMC for a new innovative business venture VAGE, a Virtual Art Gallery Experience and the methodology behind the 9 blocks. The BMC that will act as a guide and reference throughout the lean-startup of VAGE.
Description of your lean start-up entrepreneurial venture
The Virtual Art Gallery Experience (VAGE) is a virtual and augmented reality platform that turns the tradition of visiting an art gallery or showroom into a virtual and interactive experience. Targeting art enthusiasts, collectors, galleries and artists; the VAGE platform revolutionizes the global trade, viewing and enjoyment of art by enabling users to visit global art exhibitions virtually in a 360-degree open environment with interactive elements such as artists’ commentaries and enable customers to visualise artworks in their private spaces with Augmented Reality (AR) functions.
The platform is designed to support all prospective customers by providing users with different tour options (through interactive tours offered) education on the different art styles, artists and other pieces of knowledge and is also safe for payment, enabled through a safe and secure e-commerce payment portal mechanism that builds trust.
The VAGE is powered by a range of features, such as the game engine integration that allows users to cycle through collections and galleries and view content seamlessly.
Fees from subscriptions, art sales commissions, tickets for virtual events, advertising and licensing are all revenue streams for the artists and the gallery. For the first time, VAGE democratises access to art, creates more ways for engagement, and opens more entry to revenue for both artists and galleries.
The Virtual Art Gallery Experience (VAGE) Project discussion
The Virtual Art Gallery Experience (VAGE) is a new-generation startup business proposal to redefine the art market industry using modern virtual and augmented reality technologies. Completing the BMC, it is possible to see the entirety of the VAGE business model mapped, including customer segments, value propositions, channels, relationships, revenue streams, essential resources, key activities, key partners, and cost structures. Following this BMC, the VAGE team has used lean startup methodology, an innovative customer-centric and build-measure-learn-loop methodology that focuses on validating the business models through the trial-and-error process (Ries 2011).
One of the VAGE team’s lean startup guidelines is creating consumer categories early on. They are needed to understand customer segments and how effectively their products would appeal to them. To do this, the team interviewed potential clients and used questionnaires or focus groups to identify their needs (Blank & Dorf 2012). This helped identify any shortcomings and the needs of artists, collectors, galleries, and art aficionados. The VAGE BMC also uses the continual Minimum Viable Product (MVP) methodology. The team used the lean approach to create an MVP with the essential features needed to implement the business model and get customer feedback (Ries 2011). This iterative technique helped the VAGE team verify any assumptions and form hypotheses with facts, allowing them to make data-driven decisions and tailor product development and business models to users’ needs.
The VAGE team prioritized validated learning after each critical step before moving on. They knew they needed more customer feedback to measure customers’ behaviour and interactions with the MVP to determine where it had value to give their attention and where it lacked value to warrant changes or alterations (Blank & Dorf 2012). Thus, we should move from following the leadership’s views and implementing them in the BMC to using the data obtained to determine clients’ desires and models the BMC should offer.
Lean startups also prioritize being fast and ready to adjust the company model based on consumer input, or ‘validated learning’ (Ries 2011). VAGE embraced this approach since they knew they could change their thoughts and plans based on consumer encounters and market conditions while working on the business idea. This methodology made the BMC agile because the team could easily coordinate and explore ways to serve target customers in a changing market better. Thus, using lean startup concepts, the VAGE team launched a well-designed, customer-focused BMC that met these targeted clients’ needs. The BMC shows that the company would offer customers and stakeholders art experiences and entertainment, global accessibility of its solutions, and a new art-selling experience. They also established a sufficient distribution channel and internet platform, use VR and AR headsets, and cooperate with firms and art schools to build technologies to reach clients.
The BMC lists subscription fees, artistic commissions, virtual event tickets, advertising and sponsorships, and licensing and partnership fees as sustainable revenue sources. These many revenue streams help the VAGE business model and give artists and galleries visibility, retail sales, and virtual exhibition and sales earnings. Considering these value propositions, the BMC has crucial capacities to create value and earn income. Technological resources include VR and AR development platforms, safe and trustworthy electronic product commerce platforms, and high-quality digitized artwork images. It also highlights the importance of VR/AR software developers, art curators, marketers, platform creators and maintainers, content creators and curators, publishers, sales, and customer support staff.
The BMC also believes strategic alliances are vital to VAGE companies. Other partners include art galleries and museums, technological companies that make VR and AR hardware and software, e-commerce and payment solution providers, artists and curators, and educational and research institutions. Finally, the BMC describes VAGE business model expenses such as staff salaries, rental charges, and equipment and facility depreciation. This covers sales for marketing and advertising, content procurement and curation for VR/AR, licensing of product development tools, hosting, customer relations, and transactions. The VAGE BMC is a logically sound and cohesive strategy plan for the company that helps the team optimize future decisions and strategies as they adjust to market input and cues (Osterwalder & Pigneur 2010). The VAGE team’s lean startup strategy created a customer-focused, adaptable BMC that fit the creative market and VR/AR possibilities. The BMC also determines the value proposition, sustainable revenue sources, necessary resources, activities, partners, and costs to create, produce, promote, and sell an engaging and unique art experience to an international audience.
Summary
The new firm Virtual Art Gallery Experience (VAGE) aims to transform the art market with VR and AR. Customers, segments, value propositions, channels, relationships, revenue streams, essential resources, key activities, partners, and cost structure formulas are in VAGE Business Model Canvas. VAGE followed the lean startup method to construct the BMC, targeting user demands and adjusting the model to learn. This includes using interviews and focus groups to define the customer segment, creating an MVP to test assumptions and get feedback, measuring customer behaviour to validate critical learnings, and using Lean Startup principles of agility to adjust the business model based on insights. A well-structured and convincing Value Proposition promotes immersive art experiences, worldwide accessibility, and an art-selling solution from the BMC. They discussed VR/AR headsets, partners, and an online platform. Subscriptions, artwork, event tickets, advertising, and license agreements generate revenue. Technological and human capital are significant components of the BMC: platform development, content curation, marketing, customer support, VR/AR platforms, e-commerce systems, and developers and curators. These art-technology collaborators include creative hubs, tech businesses, e-commerce partners, artists, curators, and university and college partners. It also covers worker salary and space, product advertising, blog creation or acquisition, online hosting, and transaction fees. The VAGE BMC provides a sound, customer-oriented, and flexible architecture framework for business decision-making and strategy based on customer feedback and market dynamics. The business team updates and refines the VAGE BMC based on new customer feedback and market development.
Conclusion
This Report and accompanying BMC and financial statements lay the starting point and framework to grow this new business venture. The building blocks of the Business Canvas model are best tested in the real world, and so feedback is a valuable instrument to develop and focus the direction the business takes in its future. The BMC should be revisited frequently, and changes made as required to allow for sustainable growth to ensure VAGE is successful and competitive in its startup and ongoing operation.
