Task Description: To be completed individually, you are required to prepare a business report that deconstructs an organisation's business model and identifies the critical success factors that make the business sustainable. To undertake this analysis you will need to explore different business models, including those that are frequently seen to achieve sustainable success and high levels of profitability. Your analysis will demonstrate your critical thinking skills and your ability to professionally articulate your findings. Before commencing, you must seek your lecturer's approval to undertake an analysis of the business you have chosen.
The type of organisation that should be identified for study is one that is relatively new, innovative in how they operate, and have most likely been established in the last five years. No students will be allowed to examine the same business. While the assignment is an individual one, you are encouraged to discuss with your colleagues the variety of business models that have become popular and why you think they have been successful. To achieve a result that meets your study objectives, please ensure the business report addresses each of the assessment criteria detailed below and which is elaborated in the marking rubric.
Executive Summary: The business report has been created to explore the business model assignment of Timelio business, the peer-to-peer technology-based platform that makes it simpler for businesses to manage the invoice finance activities. This business model canvas forms the backbone of the report as it has helped to capture the nine elements that influence the sustainability of the online business.
The various elements that have been captured in the business report include the description of the industry in which Timelio functions, activities performed by the business, the nine building blocks of the online business, its critical success factors and the downside risks that it faces in the dynamic market setting.
Timelio fundamentally caters to the needs of the business firms that sell invoices to the investors. The objective of the concern is to strengthen the cash flow of the operating firms so that they can receive their payments quickly.
Timelio can remodel its business and have a sustainable existence in the dynamic market context by considering the highlighted recommendations:
Introduction: Timelio is a reputed Melbourne -based online finance business that offers invoice financing services and supply chain financing services to Australian clients. The business is specifically designed for the Australian concerns that are registered with ABN, having at least $ 10,000 invoice size and have the potential to grow but lack capital (Timelio.com, 2018).
The peer-to-peer technology-based business makes it simpler for Australian business concerns to use the online market platform and have a better access to invoice financing. This financing service is designed to offer the requisite financial assistance to businesses right from the start of the business activities until they have been established (Timelio.com, 2018).
Business Model Assignment: In order to understand the core pillars of the online financial business that strengthens its sustainability, the business model canvas has been used. Timelio uses the innovative technology to the maximum extent so that the business clients can get the payment against their invoices immediately instead of having to wait for 30 or more days to receive the same from their customers (Timelio.com, 2018).
The firm basically makes sure that business concerns have sufficient cash available with them to grow and strengthen their market presence. It releases the cash that is tied-up with the customer receivables. The business has entirely established itself on the online marketing platform to share the financial burden of its customers.
A. Building Blocks
The nine building blocks that have been highlighted in the book titled “Business Model” by Alexander Osterwalder has been used to gain a better understanding of the customer segment, value propositions, channels, customer relationships, revenue streams, key business resources, key activities, key partnerships and the cost structure of Timelio (Osterwalder & Pigneur, 2010). Since these aspects have a direct impact on the survival and sustainability of the financial concern, the model forms the backbone of the report and has been presented in Appendix 1.
Customer Segments: Timelio business mainly targets the Australian business entities that have their invoices that can be sold to the potential investors. It uses its online marketing techniques to reach the target customer segment that exists in the dynamic market setting. The main customer segments that can use the services of Timelio have been highlighted below.
Source: (Osterwalder & Pigneur, 2010)
Key Partners: The key partners of the online finance business include the investors comprising of the hedge funds, family offices, high net worth people and self-managed super funds (SMSFs). These partners make the business possible and provide the necessary financial support to the client business undertakings. In order to reach the target audience in the dynamic Australian, the online financial service has established its official website that can be accessed by the Australian clients (Timelio.com, 2018).
Value Proposition: The Timelio business creates value for the target audience in Australia by:
Key Activities: The key activities that Timeleo is involved in include offering financial support to business undertakings in a flexible, fast and convenient way. The simple fee structure helps the business clients to have access to cash that is tied up in the customer receivables. It makes a sincere attempt to bring together new and growing businesses with a huge network of investors who can fund the invoices.
Channels: The Timeleo business has its presence on the online Australian platform. It uses the online channel that acts as the business platform that connects the business concerns with the potential investors. This connectivity helps the businesses to use the finance and grow their business. The investors are also able to optimally invest their finance in a safe and secure place thanks to the presence of the online financial channel of the business.
According to the founder of the concern, Charlotte Petris, since the inception of the business channel, it has facilitated approximately $ 70 million in funding for small Australian business concerns. It is showcasing a steady performance over the years and its operational activities are growing by 30 % every month (Timelio.com, 2018).
Revenue Streams: The Timelio business has been performing the business activities in a consistent manner. According to the CEO of the Australian business, the business is growing by 30 % every month and it is providing a high level of financial assistance to its business clients (PYMNTS.com, 2018). The firm has not only been able to maintain a consistent flow of revenue but it has also strengthened the Australian business setting by increasing business turnover, business profitability and overall employment (Timelio.com, 2018). It receives a certain percent of commission on funded invoices.
Cost Structure: When the Timelio business undertaking came into existence, it had to be self-funded. Only after such an approach was adopted, it made an attempt to contact the external investors who could participate in the funding process and assist the business financially (Timelio.com, 2018).
According to published reports, the online financial business raised A$ 5 million from Thorney Investment Group as the group provided equity investment to the Australian business undertaking (PYMNTS.com, 2018).
Key Resources: The key resources that come into play and help the business to create value for the target customers in the Australian market setting include the technological model of the online business platform and the strong link that it has with the reliable and sophisticated investors.
Customer Relationships: In order to establish a long-term connection with the target customers in the Australian market setting, Timelio uses the online business platform, the official business website and emails. These digital tools help it to have a smooth and transparent relationship with its customers and clients.
Since the very inception of Timelio, the business has helped small Australian businesses by providing $ 70 million to them. Its services have created value for the target customers and this is why the business is growing by 30 % every month (Timelio.com, 2018).
The robust business approach helps it to bridge the gap between the business clients who have invoices with them and the potential investors who can invest their money by purchasing the business invoices in the market. Due to the unique finance business model, the investors are able to invest in a new and innovative asset class which offers them diversified returns.
C. Critical Success Factors of the business
The critical success factors of the business include the unique business concept that focuses on the financial needs of Australian concerns, the close association with sophisticated investors that offer finance to business firms. Due to its valuable service offerings, it was able to raise around A$ 5 million in the market in form of equity investment (PYMNTS.com, 2018).
D. Downside Risks
With the rapid evolution in the technology setting the business faces risk and uncertainty due to change in the technological infrastructure of the firm. Thus risks relating to the confidentiality of the customer data and their security aspects arise on a frequent basis.
E. Changes in the Business Model Assignment: If I could bring about a change in the Business Model Assignment of Timelio, I would strengthen the security model so that the data of the business clients and the investors would be safe and secured. Similarly, the social and community responsibility approach must form the crux of the business approach so that the best possible value can be created for the stakeholders (Timelio.com, 2018).
Conclusion: The business report has been designed by taking the support of the data and information on Timelio that was available via the official website of the firm and published news and articles. The business has exhibited a sustainable performance and has improved the Australian business setting by strengthening profitability and employability scenario.
The highlighted recommendations could strengthen the overall sustainability of Timelio:
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for visionaries, game changers, and challengers. John Wiley & Sons.
PYMNTS.com. (2018). Surprise Outcomes Edition: Cybercrime, Student Loans And CAN Capital. Retrieved from https://www.pymnts.com/data-dive/2016/surprise-outcomes-edition-cybercrime-student-loans-and-can-capital/
Timelio.com.(2018). Invoice Finance for Sellers - Timelio. Retrieved from https://www.timelio.com.au/sellers/
Timelio.com.(2018). The Founder Project: Charlotte Petris - Timelio - Timelio. Retrieved from https://www.timelio.com.au/founder-project-charlotte-petris-timelio/
Timelio.com.au (2018). Supply Chain Finance For Construction And Infrastructure. (2018). Retrieved from https://www.timelio.com.au/wp-content/uploads/2017/11/SCF-Construction-Brochure-FINAL-DIGITAL.pdf