10 Things to Consider When Testing Your Sick Care Business Model

Don't make business model testing rookie mistakes

A business model describes the rationale of how an organization creates, delivers, and captures value. In other words, where and how it does things to create a profit. Medical travel is struggling to find one. Direct to consumer drug advertising is coming into question. The patient funded practice is another practice model.

According to Steve Blank, a startup is an organization formed to search for a repeatable and scalable business model. The business model template, developed by Alexander Osterwalder, has nine parts. Each part is a working hypothesis that needs to be validated by the process of customer discovery and development. The parts are:

• Key partners: Who are your key partners?

• Key activities: What key activities do our value propositions require?

• Key resources: What key resources/suppliers do our value propositions require?

• Value proposition: What promise do we make to our customers to solve their problems or do the job they want our product to do?

• Customer relationships: How will we get, keep and grow our customers?

• Customer channels: How do our customers want us to deliver and offer our products?

• Customer segments: Who are our customers and how do they differ from each other?

• Cost structure: What will it cost us to make our products?

• Revenue streams: How will we make money?