Business Model‎ > ‎

Business Environment

Successful entrepreneurs have one thing in common. They have a thorough understanding of:
  • their role as an entrepreneur; 
  • their products and services; 
  • their customers; 
  • and their business environment
If you don't want to be surprised by your customers, partners, competitors or rule makers, you need to really understand your business environment. You do that by first mapping out your business environment by using some analytic tools and right after that you start moving around, interacting with relevant people and asking questions to verify your assumptions about your business environment. Actually you need to make a (mind)map of everyone and everything that influences your business either directly and indirectly.

Read more about the Business Environment:
The Business Environment is not really in the Business Model Canvas, although, when you have a proper understanding of your business environment, you will have a better understanding of:

Key Partners
Key Activities
Value Proposition

Customer Relationships
Customer Segments

Key Resources Channels
Costs Revenues

As an entrepreneur you need to carve out your space in the business environment. You can do that using the sopply chain or value web analysis.

A Value Web (enhanced supply chain) does not only contain the steps in the supply chain from raw material to end product, but also contains (when relevant):
  • price levels between each step;
  • volumes/throughput for each step;
  • value added during each step;
  • costs to add value in each step;
  • capacity, capacity restrictions and utility of capacity during each step;
  • Inflow and outflow (import/export and waste) from the system;
  • GAPs in the system that might provide you with business opportunities.
The Value Web is so important because it helps you understand your business environment.

Read more abour the supply chain and value web: