BUSINESS MODEL CANVAS

What is a Business Model Canvas (BMC)?

Business Model Canvas is a strategic management template tool that is used by people to come up with new business models. It gives a view of perspective of the entire conceptualizations of the business plans and managements. This page serves to explain each component in regards to our business.

Value Propositions

Our business provides a solution for people who would like to sell their pre-loved products. The business started off with our own members selling their own pre-loved items. Examples of the items that were sold on our business platforms were novels, albums, photocards, accessories, clothes and merchandise. Since all of the items sold are pre-loved items, they are sold off at a way cheaper price. We also provide a platform for people outside of our company to sell their preloved items, we would help them promote their items on our business platforms and try to find customers for them, they are to pay only a RM2 fee if they agree to our terms and conditions.

The services that we provide has an emphasize on sustainability and affordability. We believe it is our social responsibility to reduce the amount of carbon footprint and waste that we engage in when conducting our business. Thus, the idea of selling pre-loved items to be reused by other people at a much cheaper price contributes to that narrative. We believe in providing sustainable solutions not only for the individual, but also the community as a whole. We also cite affordability as a strong pillar of belief as purchasing a new item at full price might not be the best solution for everyone. Hence, for those who wouldn't mind buying items that have been used, we can provide them with more options!

Customer Relationship

Customer relationships is an important segment that keeps the business going. We cater to a diverse group of people as selling pre-loved items target demographics are dependent on the items that we sell. However, a lot of our expected customers are expected to be young people who are in their university years, based on the market survey that we conducted. We strive to ensure customer satisfaction and needs are met. We communicate with our customers through various marketing channels such as Instagram and Facebook. We maintain relationship with our customers by providing guidance and direction. We also provide certain discounts and adequate customer service. Since selling pre-loved items comes with huge product and quality risks, we ensure that we communicate with our customers from the onset of purchasing up until our products have been received by our customers. Full or partial refunds are permissible in the case of unmet expectations or damaged goods.

Customer Segment

With a geographical target of customers from all over Malaysia, we also expect to cater to specific customer segments such as but not limited to young adults, teenagers, fans of musical bands, various media consumers and etc. Our main target groups are very niche depending on the item that is being sold, but they all have something in common, in which they are in search cheap pre-loved items that may not be available on the market anymore. The diversity of the target market we are looking at means we have to prepare ourselves to engage with various people from different backgrounds. We try our best to understand the circumstances of our customers and give them a good understanding of the things that we try to do.

Channels

Sugarloved initially operated on Facebook and Instagram. Both of these channels provide a lot of tools for businesses, hence the decision to use them to engage with our stakeholders and potential market audience. Facebook and Instagram are also well integrated with each other, with options enabling us to post simultaneously on both platforms when a single post is made. The cost to operate on both channels are free and our customer base are familiar with using both social media apps.

Further out into the business, we decided to open up to more options to increase our presence on the market. We firstly developed a company website using Google Sites, that has info regarding our company, what kind of services we provide, what products we sell, our organizational chart, and also a suggestion board for further improvements. We also utilised Google Forms for any of the customers who would like to use our services. To integrate all of our websites all in one place for easy access and reference, we used a Linktree site to list out all of our websites.

Key Activities

Key activities that were conducted within and outside of our business contributed directly to the operations of our business. Major key activities that were carried were such as but not limited to, item cataloging, photography, advertising, sales, packaging, networking, brand designing, and accounting among many others. Item cataloging is important to keep track of our inventory by listing down all of the items that we would like to sell. Photography involves our business taking good pictures of our products to be posted on our marketing channels, good photos generally has a good outreach on our target audience. Next, advertising is done by our marketing team where we come up with promotions and deals, all whilst writing up posts that promote our products. Sales are conducted by direct contact with potential customers. Networking on the hand involves talking with our stakeholders such as our key partners. Brand designing is lead by our creative lead, where they come up with logos and ways on how we can present our brand onto relevant platforms. Accounting on the other hand involves making sure the finance of our operations are in the green and making sure our we are able to stand with our business.

Key Resources

Our key resources can be divided into a few sections, our key resources are also important in making sure the business runs smoothly. For example, in terms of finance, we had to raise up money to startup the business. From there, there was a steady cash flow into the company and we manage to utilise the money for other resources. Another key resource are all our promoting channels, this includes our Facebook page, Instagram account, Google Site website, Linktree site, Google Forms and etc. Our promoting channels are a key component in making sure our presence is seen by the customers. Thirdly, human resources are also a key resource in the company. This includes all members of our team, each of us has a defining role in the organization. Examples of the roles are spokesperson, resource manager, social media manager, creative lead, finance lead and marketer. Lastly, all of our pre-loved items are also a key physical resource.

Key Partners

One of our key partners when it comes to the business itself was the community around us. We mostly reached out to our friends and family to ask if they had any pre-loved items that they would like to sell. We collaborated with them by helping them to add their items into their inventory and providing a platform for them to sell their pre-loved items. A lot of the people within our community also helped spread the word of mouth regarding our business by promoting it to the people around them.

Cost Structure

Cost structure is important in the financial management of a business. Our cost structure can be divided into a few sections namely; shipping cost, packaging cost and miscellaneous cost. Shipping cost includes the amount of money needed to ship the items to our customers. Packaging cost covers the items that we need to wrap our items safely so it wont be damaged when they are being delivered. Miscellaneous cost covers any other costs that is not included in the previous cost structures.

Revenue Streams

Revenue is a huge part of a business and we maintain revenue by making sure our expenses do not go over our profit. The business revenue streams mostly comes from direct sales with our customers. Our marketing team ensures our products reach an audience that is interested in buying them. The business utilises online banking as a form of payment since our customers are out of reach physically and potential customers' location are all over Malaysia. Lastly, we also gain a bit of commission when people outside of the company uses our services and platform, for a small fee of RM2. Anything financial related is commanded by our finance lead. Prove of revenue may be referred under the financial reports.