Living Business Models

Living Business Models are quantified models that (a) describe the cause and effect relationships between the resources in your business (or business idea) and (b) simulate how these resources are likely to co-develop over time, based on your assumptions. These models are built using specific software which combines the power of spreadsheets with the clarity of modern data visualisation and the insights of systems thinking.

We build and update your own tailored Living Business Model (Your Model) with you, to help you with four stages of your startup or new business initiative:

 
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Your Model 1.0

Determine the viability of your idea

The first iteration of Your Model helps you to determine the viability of your business idea. It essentially helps you to answer the question: 'What kind of assumptions do I have to make in order for my idea to seem profitable within a reasonable period of time?'

If it turns out that you have to make unreasonable assumptions in order for your idea to seem viable, then we can use Your Model 1.0 to test alternative business models.

Read more about what Your Model 1.0 can do in our blog post. Or take the first step towards building Your Model 1.0 by filling out our questionnaire. 

 
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In the next phase, Your Model is developed to meet the needs of a financial model: it help you estimate the amount of capital you require, and the ROI you can offer to your investors. The model can even be used by investors to test how your business might develop in different scenarios and under different assumptions. These tests can be done live in the boardroom, right as you are presenting to them. However, should you prefer to present to your investors in a more traditional format, then the results of Your Model can be exported to Excel. 

 

Your Model 2.0

Impress your investors

 
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Your Model 3.0

Explore scenarios and determine KPIs

Now that you've got your funding, you'll need to make a time-phased action plan for how the resources in your business should co-develop in order for you to reach your goals. Simulations of Your Model under different scenarios help you to develop suitable action plans in advance, so that you're know what to do in any given situation. 

Additionally, Your Model can be used to help you identify the most important KPIs for your business, so that you know what data is most important to collect right from the get go.

 
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Your Model's value doesn't stop here. As your business grows, so does Your Model. It can be continually updated with new data as it become available. This allows you to (i) track how you are doing relative to your goals, (ii)  update the model so that it better reflects reality, (iii) forecast how different strategies you are considering are likely to play out over time, and (iv) explain the logic of your chosen strategies to your staff, your shareholders, and even to yourself!

Your Model 4.0

Run your business and communicate the logic of your decisions

 
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We don't stop here. We aim to develop life-long partnerships with our clients, building new models with you to test your new ideas, convincing others to invest in you, helping you to set new actions plans, and starting the whole adventure all over again. 

It's a Loop!

 
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