Brain Dump on a Blank Canvas
- Davian Rhodes, CPA
- Jul 3, 2024
- 5 min read
Updated: Feb 26
D. Rhodes, CPA, Writer and Editor
Ever wonder why some businesses thrive while others struggle to keep the lights on? By now you should know - it's not just about your fade technique or your client banter. It's about understanding the business behind the service or product.
Insert the Business Model Canvas: a powerful tool that helps you plan and execute your business ideas.
The Business Model Canvas is a strategic management template used to develop new business models and document existing ones. It offers a visual chart with elements describing a firm's or product's value proposition, infrastructure, customers, and finances. Think of it as a snapshot of your entire business on a single page.
Why is this crucial for your business?
Clarity: It forces you to think through every aspect of your business, from your unique value proposition to your revenue streams.
Flexibility: Unlike traditional business plans, the canvas is easy to update as your business evolves.
Communication: It's a great tool for explaining your business model to partners, investors or even your team.
Innovation: By visualizing your business, you can spot opportunities for improvement or innovation.
Recently, I was invited on a panel to a barber school in Raleigh, NC where students were using the Business Model Canvas to pitch business ideas. The school's innovative approach caught my attention, so I sat down with the head instructor, William Graham, to discuss this game-changing strategy.
Here's our conversation:
Davian: Alright. So we just wrapped up an amazing session this morning. Thank you for the invitation. You mentioned this is the first time you guys did this. What was your inspiration?
William: Well, one of the things I talk to our students about is that I want them not only to know how to cut good hair, but also how to run a good business. Right?
William: I know they got great ideas. I know they got great vision of things they wanna do. And sometimes, as entrepreneurs, sometimes we get caught in our head on the ideas, but we don't put them down on paper. Right? And so I'm a fan of the Business Model Canvas because I utilize it myself as well whenever I just want to kind of brain dump and get these ideas out of my head. And I try to explain to them that even when you dump it, it's, like a living document.
William: So for those that are not familiar with the Business Model Canvas, it's 9 building blocks allowing you to break down your vision of your business - right - from the cost to deciding your customer segment to some of the channels you have to go through, how to reach them, as well as, some of the other activities to help make that business successful, and also understanding your revenue, but also understanding your cost as well.
Davian: Surprisingly enough, I've seen or you might have even heard of, a school doing something like this before, but it usually involves them building up their own mock barbershop.
Davian: You did a little spin where you kind of gave them free reign, where they could create any type of business model with any industry - not just the barber industry - why that?
William: Well, the main reason is since we're in school, they didn't want to give their ideas away to their classmates - and I decided okay that's fine.
William: I can't pronounce the gentleman's name who actually discovered the Business Model Canvas format. But I use it as part of my mentoring for other entrepreneurs as well. And, the main thing I wanted them to take away from it is that even though it wasn't a barbershop - as long as you understand the requirements to start a business it'll help you in your journey in being an entrepreneur.
William: The same fundamentals you need to start a barbershop, you can apply those same steps to start any business. So I allowed them to have the free reign to think of any business, in order for them to think outside the box, because the most important part, is that they understand how to use that tool. And the cool thing is that all the information they put down on the canvas, could be built and turned into a more traditional business plan.
Davian: There's something called cross industry practices (CIPs). So how one of the students presented on an amusement park and was figuring out how they can attract customers - some of those tactics can be translated into their barbershop or their mobile barber truck or whatever else they want try to create.
William: And I was super proud of them because some of them kept the businesses a secret. They didn't want tell me prior to presenting because they knew I would start giving them the 3rd degree.
William: I was very proud of them. They did exactly what I was hoping they would do - which is to allow themselves to be creative, allow themselves to be free - because when you're thinking about a business, it doesn't have to always be daunting. It can be, but, you know, we want to be able to tap into that creative space so you can really open up and think about everything.
Davian: Expectations. What did you expect them to come up with? And did they exceed that expectation or meet it?
William: They met it and some exceeded it as well. I say they all exceeded it because I'm surprised some even showed up and presented. I was thinking that they would use an excuse to take a day off. So, yes, they all exceeded it.
William: You know, again, we want them to know how to cut good hair, but we also want them to know how to run a good business as well. And that doesn't necessarily mean a full shop because those same principles apply, to your individual chair as well.
What stands out is the instructor's and the school's commitment to developing not just skilled barbers, but barber business owners. By introducing the Business Model Canvas, their equipping these students with a versatile tool that can apply to any business venture, within or outside the barbering industry.
The emphasis on understanding fundamental business principles - from identifying customer segments to recognizing costs - is crucial. Moreover, the freedom given to students to explore diverse business ideas highlights a key point: the principles of good business are universal.
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*This article provides general information, not individual tax advice. Tax situations vary; consult with a qualified tax professional, like myself, for advice specific to your circumstances.