Business Model Canvas

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The business model canvas is a tool permitting to identify all the key points essentials to start a business. This method is very useful, by presenting all the components of the company, the business model canvas asserts itself as a strategic tool. The structure of the document makes it easy to check the coherence of the project on the one hand and to highlight its added value on the other hand.

The central bloc concerns the value proposition, which means the selling proposition proposed by the start up. In our case the Cerberus solution is an innovative method to functionalize cellulose thanks to a protein. We would provide advices and accompaniment in the design of linker, and the functionalized function for cellulose fiber.

Four blocs concern external aspects, they are mainly linked to the market environment.

1 . Customer segments: Corresponds to the various market groups which would be interested by our Cerberus solution. It could be plant cellulose producer, which would want to add properties to their fiber. Because cellulose is present in various textile type such as fashion or bandages we could target the textile industry and health industry. One of our proof of concept is to add magnetic properties to cellulose, we also imagined adding graphen or CNT for the conductivity properties. Therefore, we would target the electronic component industry.

2 . Customer relationship: Because we would provide advices and conception design we would be a business to business society. There would have two types of contract:

• R&D contract: Providing the design of a linker in terms of the client needs.
• Production contract: Providing the linker produced by a partner.

3. Channels: This is corresponding to the wide channels permitting to make discover the business, deliver the value proposition, provide after-sales service. In our case it would be web sites, scientific publication, prospection, specialized forum or startup forum, and finally our professional network.

4. Revenue stream: Corresponds to the type of revenue generated from each customer segment. It would be product sales, patent sales, or right of exploitation. But it we could also collect money from bank loan of public investment

Four blocs concern internal aspects.

5. Key partners: Corresponds to the network of partners and key suppliers through which the business model works. On the one hand, we would need sub-contractor to scale up the production of the linker before providing it to industrials. Also, we would need a research laboratory and start up incubator such as TWB, permitting to continue the R&D research and improvement of the product, as well as raw materials producer. On another hand, we would need partners such as accounting firm, financial, business lawyer to protect our idea and health agency, to prevent all the possible risks.

6. Key activity: Corresponds to the most important things an organization needs to do to make its business model work. We identified two main sciences activity: R&D and production. But to run a business we would also need various activities such as Human resources, marketing, legal or financial activities.

7. Key resources: The most important assets required to run the organization’s business model. We identified four main aspects that corresponds to the four main profile of the co-founder of Cerberus business. But, the four co-founders have all done sciences studies, so a marketing profile is missing and to begin a business it is very important to have a multidisciplinary group.

8. Cost structure: Which means all the different types of costs inherent in the economic model. We identified various types such as raw materials (enzyme, plasmids, antibiotics, buffer, products for the medium…), the equipment (Kit, PCR, electrophoresis …) but also salary and charges, certification audit and taxes. The distribution costs to provide to the client, the travel expenses to meet new customers by the commercial.

Market Analysis

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The SWOT is a strategic analysis tool that generally applies to organizations. The SWOT puts into perspective the internal characteristics of the organization with the state of the environment in which it evolves. Concretely, this tool is simple and readable which presents:

• The strengths and weaknesses of the company: INTERNAL analysis which therefore concerns elements on which we can act directly.
• The opportunities and threats of the environment: we are here at an EXTERNAL level to the company, to observe the elements on which it is not possible to act directly, and which will require an adaptation.

The SWOT makes it possible to anticipate strategic risks, to decide on a commercial positioning, or to refine an economic model.

Business Plan

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Before considering starting a business, we need to structure our idea to make it more concrete for ourselves, our future partners and our funders. Writing a business creation project consists of building a business plan. The business plan is a founding document that summarizes the essential element of the project including:

• Market research
• Commercial positioning
• Economic model
• Quantified projections

Perspectives

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