Dec 8, 2020
Business Model Design, Connect The Dots of Your Business with Joseph Sudhip
CEO's and Business Owners who wants to stay ahead in the game, hire me for Business Model Designing. We design state of the art models using fourteen business canvases and sixty patterns
Joseph runs a successful Business Model Design workshop, he helps CEO's and SLT Team to connect the dots of your business, all the activities of the business can be structured under fourteen canvases, you can pull in any of the sixty business patterns into the business canvases based on your insights and capture all these into a business plan, which can be converted to a budget. Finally, you will have a business model that explains clearly how your business creates, captures, and delivers value to your customers. Joseph conducts a) In-person workshop b) Online Workshop c)Give the content with an hour overview so that you could build yourself. Exited the corporate world in his early 40's after 15 years of international exposure in the strategic leadership team of various organizations across industries. The reason for change was due to an innate urge to do something creative out of the rich experience.
Full Transcript Below
Roy with The Business of Business Podcast (00:02):
Hello, and welcome to the business of business podcast. I'm Roy, you can always, uh, as usual you can find us at www dot, uh, the business of business podcast. We are also on iTunes, Stitcher, Google, play, and Spotify. And so what we try to do is bring, uh, you know, we have guests that can help us in our business anywhere from a solo preneur like myself, and, uh, you know, all the way up to managers of major corporations. Uh, that's the, the main reason I started this podcast was the number one. It helps me, I learned something from every one of my guests, and then, uh, you know, able to put that into work. Not only all the great people I get to meet. And so without any further do we'll talk to our guests today, it's Joseph's of deep. He is with business model designing.
Roy with The Business of Business Podcast (00:55):
And what he does is he help CEOs and business owners that want to stay ahead of the game by using a different models to model their businesses or where they want to go. So, you know, it's important. We talk about it in the marketing process all the time that we need to have a roadmap. We need to know where we are. We need to know where we're going, so we can have a path. And the same is true in our overall business. We need a, a plan that we can work every day. And then also we need flexibility. We need to regroup from time to time to figure out, you know, what's changed in our environment, the company, the product competition, things like that. So without further ado, Joseph, welcome to the show. We appreciate you taking time out of your day to meet with us this morning.
Oh, thank you. Thanks a lot. It's a real honor to be in your show.
Roy with The Business of Business Podcast (01:48):
So, uh, just tell us a little bit about, you know, kind of how you got here and, um, I think you have a financial background if I'm not mistaken. So kind of how you ended up here and what your models can do to help, uh, CEOs and businesses.
All right. So I think I shall start a little bit of my story. So I have, I'm a professional accountant. I have a CMA from us and MBA from an Australian university and in international business. So I have been for 18 years, I have been in the corporate life as a financial controller director of finance, uh, and human resources, the CFO, those kinds of roles. So I was pretty blessed enough to get a good break, uh, in my early twenties to work with, uh, global, uh, you know, a multi-billion dollar organizations. So that made me tremendous exposure to be in the game a little bit ahead of, uh, you know, compared to other kids who are in the same career. So by the age of 40, I was like, you know, you, you basically, you basically, you know, you think about what you need to keep doing.
We need to keep doing the same financial stuff or do something different. So I was looking at various opportunities to, you know, what else I could do for it. And then, uh, I came across this, uh, business coaching professor wherein I could use my, you know, export share international exposure, which I have got, uh, on a global level. So that's how I came into business coaching. And, uh, once, uh, after the business 14, then I wanted to find my own niche because there's a lot of, uh, initials in business, coaching, leadership, coaching, uh, personality development, the strategy and all those. So I was looking at, I was looking at where exactly is a big gap. And through my research, I found that water is dining. There's a huge gap within small and medium enterprises to really figure out how to do this best business model. This guiding for investors and many are not like aware on how to do this. So I started researching and doing, uh, more, uh, studies, uh, qualifications like this, to see what exactly is business models, this guy. And, uh, and I, it was really pretty interesting. And so my mission is to help, uh, [inaudible] our small and medium enterprises to do a clarity on what business model you designing is Kayla in terms of values.
Roy with The Business of Business Podcast (04:52):
Okay, great. So, uh, let's just start at the beginning. So I come to you and say, Joseph, uh, helped me. Uh, do you typically work with, uh, people just starting out with a brand new business where they just have an idea on a napkin or do you more or less help maybe, uh, uh, ongoing concern that is struggling?
Uh, it's both actually, uh, newer new enterprises plus, uh, the ongoing ones. Okay.
Roy with The Business of Business Podcast (05:20):
All right. So, uh, I come to you say, Hey, Joseph, either way, uh, you know, I've got this great idea. Here's my napkin. It's all written down here for you or, uh, you know, I'm kind of a hit the wall in my business, where do we start in the process?
Okay, great. So the first thing first, right? So first thing, what we, you know, we sit down and brainstorm on, uh, you know, basically your napkin, uh, model, uh, asking like, what really is your value proposition? So when we tell value proposition, what exactly customer gains, or what does that you're to solve, right. So if it's a product, like how is it helping a customer? If it's a service, basically, what are the pains? What are the gains? What are the gain creators of your product or service and what are the pain relievers? So it could be on board. It could be that I've been a pain reliever or a gain creator, your product or service. So he basically, and that's basically what I mean by value proposes that. So we basically drilling down into the value, proposes them and see good exactly it is. Yeah. And then the second step is we look at the customer segment, what is the customer segment you are trying to approach with your product and service and what are, and what is this customer segment life like? What are the comparable products in the market? And, and this is the start.
Roy with The Business of Business Podcast (06:52):
Okay. Yeah. And, and, um, I think we found a great little jumping off point right off the beginning. You mentioned value, value proposition, which it's so important. And, um, a lot of times business people fall into a business by accident. They do something, somebody likes it, so they do more and they kind of get moving along or, uh, unless you have a very unique product or service, most of the time your product or service is basically a commodity. So trying to differentiate, uh, that value proposition. It's so important. I mean, Y you know, there, uh, uh, well, let's just choose a, uh, I'm trying to think of a good, so we sell soft drinks. I mean, there's like a hundred different soft drinks on the market, you know, what do, what is mine going to do to bring value to you as the consumer? Why choose me over anything?
Roy with The Business of Business Podcast (07:52):
And it's the same with the service. I mean, like me, I do a lot of consulting, so there's a, you know, consultant on every corner nowadays. So what, what, what differentiates me from, um, everybody else in the market, what's the value. And so that's important to dig down and try to find out what that is. Exactly. I think we miss that a lot, you know, and again, I kind of relate this back to the marketing end is that, uh, you know, sometimes we just say, Hey, I've got this awesome product by where we leave out that. So if we can figure out the value in the business model and translates to a lot of other areas in the business itself are, you know, in the process itself.
Yep. Yep. You're right. Absolutely right. Yeah.
Roy with The Business of Business Podcast (08:38):
And so, um, I guess when you talk with owners, is, uh, is it difficult to get, to kind of bring this to the surface? The, are people kind of keying in on, this is the value that I can bring, or is that something that really takes a lot of work on the front end to say, we've got to determine the value before we can actually move on?
Um, it takes a little bit of exercise because it's not, uh, it's not because we need to find that unique value to that customer segment where it will like really, really be an aha moment for them. Yeah. So, so for that again, I, you know, I really drill deep down and see, like, you know, if you, once, if, once you identify your customer segment, you have to identify the other jobs which these customers do. So, and for me, I like, uh, you know, uh, differentiate like for three to four jobs, like one does a functional job. Another, another is a social job, an emotional job. Let's put it that three, four a, you know, for explanation sake. So the jobs ease my product and service, you know, catering to you. And what are the gains in these jobs and what are the pains in these jobs? And how can I relieve those? My product or service will leave those pains or they'll get a new Gates. So this is where, like, it's a real brainstorming session. And this many times, even this business owners wouldn't have thought in these details, right. And this is basically the base foundation of how once we start building a business model.
Roy with The Business of Business Podcast (10:24):
Yeah. And I assume that, uh, not only digging into that customer segment, but also, uh, digging into the competitor segment too, I think that's something that, uh, another thing that we kind of a gloss overs that, Hey, I sell this product or service and, you know, it's the best everybody should buy from me. And we really don't know what is our competitor doing? What's their offer. We may know their price point, but as far as digging into what is that process to what is the value they add? Because inevitably we are going to have to differentiate ourself from that competition. So I guess this is a great point to, uh, maybe even do some mystery shopping of your consumers to get out there, to really dig down into detail what their offerings are.
Roy with The Business of Business Podcast (11:18):
And so how, how do you identify their competition? Do you rely just on them or do you actually get out and try to do a little research yourself to see who the, uh, competitors may be?
Okay. So this is like the second stage of it. Like once we identify our value proposition and the customer segment, then what we do is something called a business testing. So we do a different kind of testing. Like, you know, it could be, it could be a beacon, se it be an AB testing, or it could be some surgeries just to make sure that whatever the assumptions which we had brainstorm during our session is actually a reality because many of times, and the proposal startups, you know, they are in this mystic word, like, Oh, big thing, it's going to crack the world kind of thing. Right. But [inaudible], so I got to basically call the, you know, business testing of assumptions. So we do, uh, you know, sell rates or AB testing in these niche, uh, customer segments, which we all identify and see what is the reality.
Roy with The Business of Business Podcast (12:36):
Okay. Yeah. And that's the other thing is, uh, you know, when we, as entrepreneurs or business people, we all have the next great idea. And sometimes we think we've hit on something. That's not even out there. If you do a little research, you know, you may be surprised to find that there are 10 other people that are already doing, you know, what you want to do. So anyway, can be back to the drawing board again, to beef up that value proposition, if it's worth moving forward with some, all right. So what is the next step now? We've got, um, uh, we've got the value proposition. We've looked at our customers. We've looked at our competition. Uh, are we ready to launch and get out there and see what we can do?
Nope. Nope. Not yet. [inaudible] life would have been so easy. Right. So this is that same door. That it's a bit, it's a very basic, it's a foundation right now. And I basically do a coat, always like, you know, one, maybe what we did is we identified that there is a, there is a gap in the market. Now it's a question of seeing where there is a gap. There is a market in that gap. Okay. That's the culture.
Roy with The Business of Business Podcast (13:50):
Yeah. And, uh, and I think just to clarify for myself, I think what you mean is that there may be a gap in the market, but if it's only one, if it's a, a very small percentage of, well, you know, if people, if there's only five people that really need that, is it going to be a money maker for you? So I guess you kind of have to decide is the, the market, the gap, the market of the gap, is it really a wide enough depth, deep enough, is there enough money in it that we could sustain our business or ideal office?
Exactly. Exactly. So basically there is that there's a gap, there's a market in that gap. Okay. So, so that, again, you need to do a little bit more wider market testing to see whether you have, and this is where this technology comes into picture, because now it is, it's, it's very easy, not very easy, but it's, it's, it's more compared to other time, you know, otherwise you have to stand in for a service in front of a, you know, shopping mall or whatever, but nowadays social media, it's more easy to test that kind of, kind of the vastness of the bucket. You know, it could be, we can take a test with the clicks number of clicks, see, or a number of clicks, which you get to move on to the, you know, to, to basically do the buy input to the buying page. And we can also test at what price is ideal price for this market and those things. Uh, so that basically the second stage, you know, uh, whether there's a real market in the gap.
Roy with The Business of Business Podcast (15:33):
Okay. All right. So we've identified that we feel like there's a good, uh, you know, a large enough market in this gap. So we're going to choose to move forward. Where would we go from here?
Okay, great. So once we, uh, did this, then we go a little bit more up and, uh, and then I work on like 14 different, uh, business canvases out of that, for me, it's two, which we discussed, which is, uh, which is the value proposition. And we redefined what would be the features of our product and services. And the third one is the customer segment. Okay. [inaudible] okay. Now we, now we know, okay. So here we are. This is our offering. And the, here is our customer segment. Now it's a personnel working on three cameras. Cameras is communication. How do we communicate to this, uh, to this target segment? Okay. And what is that? We are communicating to elements in this cameras because you have a product and service here. You have a, you have a customer segment. Yeah. Right. How are we going to communicate or make know that this product X is in this, in this pocket? So, so that is that next a strategy to build, like, what other ways would we get communicate based on that it is purely based on the customer segment.
Roy with The Business of Business Podcast (17:07):
Right, right. Yeah. I guess because, uh, you know, just depending upon who they, who we're trying to reach, is it a small business owner? Is it a consumer, you know, who we're marketing to not only dictates our communication style, but also the platform in which we, you know, I guess, um, you know, if we're going to go after consumers, you know, Facebook, Instagram may be our, our choice. Whereas if we're looking at small businesses or, uh, departmental managers, if, you know, if it's more of a B2B product or service, then we may want to hit LinkedIn and, and do, uh, do our communication there. Yep. Okay.
Okay. So four, then the fifth one fifth one is called talents. Okay. What are the talents to which we are going to deliver our product or service [inaudible] intellect channel, maybe being, you know, making your own, you know, sales representative and doing e-commerce website and indirect channels. You know, you can have a number of distributors or you can build, uh, partnerships to keep selling on platforms. There's a lot of things that are available out in the market, uh, to, to bring the channels. And what I see is, uh, with my experience with these businesses, this is something which has not been taken seriously. What are the bits of this habit? Like just one or two channels. And they think, you know, that's it there no more know options available.
Roy with The Business of Business Podcast (18:53):
So I really sit with them and, uh, you know, explore different opportunities that even from my coating, which is like a small business, I have it on nine different channels. Oh, wow. So that was the power of channel. Is that the more you can increase the channel, the more, you know, the potential for your income.
Roy with The Business of Business Podcast (19:17):
Right. Right. Okay. Awesome. That's a good point.
And then the sixth one is called a festival relationship. So in customer relationships, by focusing on three things, how is that you want to get customers? How are you growing customers and how you can keep customers? Okay. And those are really important because you need to have a strategy for all the three. Right?
Roy with The Business of Business Podcast (19:47):
Exactly. Yeah. And that, uh, you know, it's good too, that you bring up the customer retention because a lot of times, um, it's unfortunate, but especially in a newer startup or a newer product, we're hustling trying to get new people, get new people, but we're not taking care of the ones that we have. And then all of a sudden, you know, we're just kind of like that one hit wonder, we, we just have nothing but new people. We've got nobody that's been around for a while. So definitely something that, you know, because I, I, I'm assuming, you know, from, um, my experience is that, uh, the acquisition of that customer is the most expensive part. So it's, it, it, while it may be costly to hang on to them, it's not near as much as the cost of getting them. So we have to really pay attention to that. Not only, you know, to keep our revenue stream, but also on the expense management part. Yup. Yup.
So, uh, so I've told, uh, six, right? Yeah. Okay. Now the seventh one is called revenue streams. So what are the revenue streams possible in this business? You can work on a subscription model, licensing model, franchisee model, recurring revenue, transactional revenue, there's a whole lot to be identified. So, and then you decided about like, what are the streams we take and use in this particular business? And, uh, uh, the eighth one is called pricing models. So for each a new stream, you can have different pricing models, right. Because if it is a subscription model, it's a different pricing. If it's a transaction model, it's a different pricing. So, so you do add, so you need to find out what are your pricing models? So now I got rid of around eight. Yeah.
Roy with The Business of Business Podcast (21:50):
But sorry, I just going to jump in before we move on there on the pricing. It's, um, you know, I've worked with people before and you say, uh, whatever their price is, it's like, what, how, how did you get to that? Like, well, that's just what it is. Are there, am I competent? You know, I worked with a company that was a carpet cleaner one time. And so, um, his competition charged 39, 95 or something per room. And so he charged 35. Wow. That's great. But what's your cost in providing that service? I have no idea. Well, you know, come to find out his cost was about $40 to provide that. And he was charged in 35, but he didn't base it on any research or, you know, logic of what are the expenses that are included. So just, I guess just making the point, there is a lot that goes into considering what is a price point that we need to develop. And sometimes they may be lost leaders if we're trying to acquire somebody for a bigger purchase or another purchase, but still, we need to give that a lot of thought as well.
Well, yep. Yep. And, uh, and, and why, why he is just doing a competitor pricing as he has done. He has not done that first exercise of the value proposition and the customer that, that mapping right. You, cause if he, if he has some unique features in the product, then you sell that feature, then you up your price. Right. Right. Okay. So, uh, so what are the stakes, which are like, uh, you know, communication channels, customer segment, uh, customer relationship, pricing model and revenue streams, right? So these all six canvases, I basically like to call it as multipliers and why I call it multiplies. Because if you see, like, if you're able to patch, are any of these canvases, the result is [inaudible] enhancement in your revenue. If you touch your channels, if you touch your communication, all of a sudden increase in revenue. Right. So I, I love to call it as multiply.
Speaker 3 (24:03):
Okay. So now we discussed, what is the offering we discussed on the multipliers. Now we are going to look at the other side, which is the configuration side. All of the, I call it [inaudible] Lewis means there was another six cameras in that if you're able to optimize any of this canvas, that goes to the self in cost reduction.
Speaker 3 (24:28):
So, so the ninth one, which is, again, really key is key partnerships. So keep on those ships with respect to supplies, because nowadays it's very competitive. So you need to stick to what you're really good at. So if someone else is good at something, give him that. And then you focus on what you're really good at really key partnership strategy alliances. Right. This is going to work because you can't keep, uh, you know, you know, having a big chain, uh, on all the functions.
Speaker 3 (25:06):
Yeah. Don't spread your resources too thin.
Yeah. So, so Nantha, SK-II, uh, partners, uh, tenders, key activities. So you need to decide what are the key activities in your business, starting from, uh, you know, uh, starting from finding the suppliers, getting the goods manufacturing, or how are you going to the service? How are we going to communicate all these have to be listed out all the key activities, Uh, is a key resources. So in order to do this, you need use, or is it right, who are going to be your key resources and how are you going to sort of say, so this is basically on the human resources side,
Speaker 3 (25:49):
So now once you add, uh, this key partnerships, he resources and key activities, you will get another, camera's called the cost structure. Basically when you add these three it's your cost structure, and then you have another canvas called key assets, basically, what are the assets required? 200 show. And the next scan was this investment. How much investments do you need to buy the key assets and to have your working capital? So this is on the Leeward side with another six business canvases. Okay. So six plus six plus two 14 canvases. So this is how I help clients to build a business scan was. And the interesting thing is if you want to make a business plan out of it, it's very easy. You pull up these extracts from on the 14 canvases and it's your business plan.
Roy with The Business of Business Podcast (26:48):
Yeah, no, that's a great stepping stone to a lay out your business plan, very thoughtfully because unfortunately, um, you know, a lot of those key steps that you mentioned or are left out, leave a big hole in our plan, even if we don't see it, you find it eventually when you try to make it operational. So definitely worth the time on the front end to go through this. So let me ask you about timing. Um, and I know a lot is dependent upon how big of a project and, and on how, uh, uh, uh, my, uh, how timely I communicate back and forth with you as your customer. But, uh, basically what is the, uh, an average timeframe from start to finish to get through the 14 canvases? Uh,
I would, uh, normally like, uh, what I do is, uh, workshops. Okay. So you do take, uh, you know, then if it is an online workshops, normally, normally it takes a month in the sense, uh, you know, you can't have the full day, right. Or like we do have a, is each week. Okay. So almost, uh, you know, uh, half days out for four weeks, it will be like two days, I mean, two days, one workshop, which will be in the span of
Roy with The Business of Business Podcast (28:08):
Okay. Okay. And, and then, um, you know, these are trying times that we are in, so, uh, let's just look at that is that if we had done this a year ago and we'd gone through the 14 canvases now would be probably a good time to kind of come back. And, uh, would you want to go back and look at all 14 of them or when you revamp, is there just certain pieces that you pull out and want to look at those?
Oh yeah. So, uh, we would, uh, we would not look at all the canvases, but we will see based on what the external environment is like. So today we have this pandemic going on, right? Yes. So we tell the cameras, this is getting affected in this. Is it communication or is it the revenue stream or is it a customer relationship? And then we work on based on current center, what, what basically works best.
Roy with The Business of Business Podcast (29:06):
And then we are trying to do a optimization or change [inaudible].
Roy with The Business of Business Podcast (29:15):
Yeah. And, uh, you know, the pandemic is, uh, it's something that is so extra ordinary, but I think that it's, uh, it's a good, uh, it's a good practice to always revisit parts of these canvases, I guess, throughout the year, because we always, we may have new competition that came up. We may have, uh, somebody that introduced a, either a like, or little bit of a superior product. We may have somebody that had a cost reduction or cost increase in our competitions. There's so many factors out there that change that. Um, even though I guess this is not just one and done, we don't do this, get in business, put it on the shelf and never think about it again. We have to, if we want to sustain our business, we have to be flexible and we have to be in tune with what's going on out there is, do you find that to be correct?
Well, I mean, it's really good that you bought this point out because I tell you my mission going forward is just that that might be signals, uh, to, to make sure business model is being, we, we set up like a budget in a reorganization, right before you do the budget, you revisit your business model and then make the budget. And I want to make it, uh, you know, tell it to the war world, uh, and make this as a practice and part of the system, because it's so effective.
Roy with The Business of Business Podcast (30:45):
Right, right. Yeah. That's all great advice. Well, um, so what is one tool that you use in your daily life, either in your business life or your personal life that, uh, either a tool or a routine, or, or what do you do to keep yourself on track?
Uh, one thing which I do with, uh, you know, as, uh, all the successful people, this is, I have a routine, so I stick to my routine so that, you know, I tend to get effective. And then, uh, of course, uh, I do, uh, I do some exercise to be in present A person so that, uh, you know, what I have, uh, felt is, uh, you know, rather than going on reading, uh, you know, any number of books, if you don't, we have been quiet, [inaudible] they tell it, tell we give you us giving us messages.
Roy with The Business of Business Podcast (31:51):
Right? Yeah. We definitely have to be in tune with ourself and with the universe around us, for sure. Yep.
Yeah. So I tend to be in the nature more and then being present. So I kind of get lot of ideas, which, you know, it just like it posted.
Roy with The Business of Business Podcast (32:12):
All right. Great. Well, Joseph, if you wouldn't mind tell people, um, you know, how they can get a hold of you, basically, who is your client? You know, I know it's most businesses, but probably want to work with either, uh, you know, like CEO or the owner of the business, or top management to really, uh, have an effect, somebody that can put these plans into place. So, um, just tell us a little bit who you work with, how they can get ahold of you. Uh, everybody needs to sit down with you and get these 14 canvases looked at if you have, and if you've already done it, then it's definitely, always a good time to be thinking about, uh, you know, any updates to those as well.
Okay. So, uh, I work with, uh, CEOs, business owners and strategy rescue team. Um, and since there's like a huge demand, uh, on this, uh, what I've done is, uh, I'm, uh, I do three things. One is I have a page called the page, the page called the business model, coach.com. And I sell a course. It's like a one hour video of giving details on, on, on what the business model it's framework and giving some something. If they, if they don't, they can do it, do it themselves. Okay. So they get my, the course, they can download the video and then keep hearing, and they can do that. It's, they're getting through that. Uh, second is I conduct this, I conduct webinars every, uh, every, every biweekly. And it's, it's going to start, uh, from, uh, from the, uh, from the suburb. So basically what I do is I hold this webinars for the CEOs business owners and strategy leadership team.
And in this room, I actually pick one of the CEOs and, and basically play game-ification whipping out with them on business model. So I give, uh, asking questions, uh, and then, uh, you know, try to help them frame a business model, then the, uh, show, which is going to start in December. So there's one to keep getting ideas on different perspectives on business model. It's like every biweekly. And so they can subscribe to that. And the third is, uh, you know, they can have this workshops with me on business model, designing, wherein we build into each moderates and then keep designing this.
Roy with The Business of Business Podcast (34:53):
Okay. Yeah. And I will be sure and put all the links to that in the show notes and all my webpage as well, try to, uh, drive you some traffic. This is a such an important service that you provide that, you know, I just really encourage everybody to take a look at it because we, while we, we've got to have, we got to lay the foundation with planning, and then also, like we've talked, we've got to revisit that we've got to be flexible in order to make, to have longevity in the business world. We can't just be rigid and static. So, but, uh, well, thank you so much for your time today, Joseph, we certainly appreciate you going over the 14 canvases with you. And, um, again, you can find us at www dot the business of business podcast. We are also on Facebook, Instagram, Twitter, and then we also are, uh, you can download us on iTunes, Stitcher, Google play, and Spotify, Joseph have a wonderful day and, uh, we'll talk soon. Okay.
Well, thank you. Thanks a lot for inviting me on the show. Thank you, sir.