Business Models 101:Key Activities

In this part we will discuss the Key Activities of your business.

I have to repeat it on every page but starting something on your own, creating value for you, your family and the world is a totally recommendable thing to do. You want to create your company. This is GREAT. The world has been made by people like you. Entrepreneurs. Self-Made Men, Creators, Builders people that believed an obstacle is just another great challenge to overcome, to solve and put behind them as an achievement. 

The Key Activities

This is an obvious subject but difficult one. Because you have to clearly understand what you are doing and how you do it. It is not only essential that you see all the activities that you have to do, but because a day has only 24hours, you have to focus on the main ones and delegate the non essential ones.

In order for your company to develop you will have to do stuff. What you do most of the time will be your key activities. If it is writing a website about Excel and related stuff, the activities are to look for what your readers need and try to solve them, it is also to check the market, give them news about it (like a new release of Excel or other events like this) and advise them what to do about it. Another activity, will be the marketing of my website, for example to advertise it in various institutions or websites.

If your are a cupcake factory, then your key activities will be to find the right recipes, do market research, find customers, find the right equipment and of course produce cupcakes. But also there is the cleaning of your company, may be this can be done during the hours where you rest (after 9pm) and by a cleaning company. This is typically a non essential activity.

Key activities change over time.

When you are at the very beginning, setting up of the company to generate the key activities (finding funds, building, equipment, creating recipes, etc…)
once this is done, it is the backing, selling, shipping, marketing, find the customers, web site, etc.... that will take your time.

key activities

An activity generates cost or profit. If you do not concentrate on the proper activities then you will whether lose money or not earn properly.

Every block in our business model diagram will generate activities. So you have to browse through them ALL and look at what key activities are needed by:

  • our value proposition?

  • our distribution channel?

  • our customers? 

  • our revenue stream?

  • our cost structure?

A cost will be associated to every activity that is created. The costs have to be clearly written down. You can then create a Excel Entry with all these costs. They should be balanced with the income stream you are generating.

 

Previous: Revenue Streams

Next: the Key Resources

 

Download the template from here.

 

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