Business Model Canvas

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The business model canvas is a tool allowing to identify all the essential aspects to start a business. This method is very useful and 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 and to highlight its added value.

The central bloc presents the value proposition, which means the selling propositions of the startup. In our case the Cerberus solution is an innovative method to functionalize cellulose using a cellulose- binding protein. We would provide advice and support in the design of linkers and on the cellulose fiber functionalizing function.

The four following blocs deal with external aspects, they are mainly linked to the market environment.

1 . Customer segments: Corresponds to the various market groups that would be interested in our Cerberus solution. They could be plant cellulose producers who want to add properties to their fibers. Because cellulose is present in various textile types such as clothing or bandages, we could target both the textile industry and health industry. One of our proof of concept is to confer magnetic properties to cellulose. We also considered adding graphen or carbon nanotubes (CNT) to confer conductivity properties to cellulose. Therefore, we could also target the electronic component industry.

2 . Customer relationship: Because we would provide advice and conception design, our start-up would be a business to business company. We would establish three types of contract:

• Support and advice contracts: We will offer our advice and accompaniment to the clients, and we will charge it per day.
• 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 corresponds to the wide channels allowing the business to be discovered, deliver the value proposition, provide after-sales service. In our case it would be web sites, scientific publications, 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 the business model relies on. On the one hand, we need sub-contractors to scale up production of the linker before selling it to industrials. We would also need a research laboratory and a start-up incubator such as Toulouse White Biotechnology, allowing to continue R&D to improve the products and produce raw materials. On the other hand, we need partners such as an accounting firm, investors a business lawyer firm to protect our ideas and a health agency to prevent all 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 mains scientific activities: R&D and production. However, to run a business, we 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 correspond to the four main profiles of the co-founders of Cerberus business. However, the four co-founders have all done scientific studies, so marketing expertise will be missing. To begin the business, we will then either hire someone with a commercial profile or we will collaborate to have another co-founder.

8. Cost structure: This corresponds to the different costs inherent in the economic model. We identified various types such as basic reagent costs (molecular biology reagents, purification kits, culture media, …), equipment costs (PCR machines, electrophoresis apparatus, protein purification systems…) but also salaries and charges, certification audit and taxes. The distribution, the travel expenses to meet new customers by the sales representatives.

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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