| Course | BUS 484 Entrepreneurship |
|---|---|
| Module | Module 4 |
| Paper type | Business model analysis |
| Length | About 1,172 words, 7 pages |
| Format | APA 7 student paper |
| School | Aspen University |
| Program | Business Administration |
| Updated | October 2026 |
Free sample paper for BUS 484 Module 4
Outgrown by March: A Business Model Canvas for a Seasonal Children's Winter Gear Rental in Duluth, Minnesota
Student Name
Business Administration Program, Aspen University
BUS 484: Entrepreneurship
Instructor Name
Month Day, Year
Outgrown by March: A Business Model Canvas for a Seasonal Children's Winter Gear Rental in Duluth, Minnesota
Every November, parents in Duluth, Minnesota, discover that last winter's ski boots no longer fit. Children's skis, boots, snow pants and helmets are expensive, used for one or two seasons and then outgrown, and the used market is unpredictable. Megan Lindqvist, who spent nine years as a buyer for an outdoor retailer, wants to start a venture that rents children's winter gear by the season and swaps sizes as children grow. She has a clear opportunity; the question for this module is whether she has a business model that can deliver it and make money. This paper describes her model using the business model canvas, tests its profit formula, compares it with alternatives and records the changes the analysis required.
Why a Business Model, Not Just an Idea
Osterwalder and Pigneur (2010) define a business model as the rationale of how an organization creates, delivers and captures value, and they break it into nine building blocks that can be sketched on one page. Johnson et al. (2008) describe a successful model as four interlocking elements: a customer value proposition, a profit formula, key resources and key processes. Both approaches stress that the parts must fit together. A strong value proposition is not enough if the profit formula fails or if the founder lacks the resources to deliver it.
The Nine Building Blocks
Customer segments. The primary segment is families with children aged four to fourteen who ski or play in the snow at the city's hills and nearby resorts. A secondary segment is schools and youth programs that run winter outings.
Value propositions. Parents get properly fitted, safe gear every season for less than buying new, with no need to sell outgrown items. Children get gear that fits, which makes them more likely to enjoy the sport.
Channels. Families reserve online and attend a fitting at a small shop near a ski hill. Schools order through a direct account.
Customer relationships. The relationship is personal and recurring: a fitting each fall, a mid-season swap if a child grows and a return day each spring.
Revenue streams. A seasonal fee of $149 for a full ski package or $89 for a snow play package of boots, pants and mittens, plus small fees for damage beyond normal wear.
Key resources. The gear inventory, a refurbishment workshop, fitting skill and a booking system.
Key activities. Buying gear, fitting children, tuning and cleaning returns, tracking each item's age and condition and selling retired items.
Key partnerships. Two wholesale suppliers, a local ski school that refers families and three elementary schools.
Cost structure. Inventory purchases, shop rent, seasonal staff, refurbishment supplies and insurance, with costs heavily concentrated before the season starts.
Testing the Profit Formula
Johnson et al. (2008) argue that the profit formula should be defined early, because it determines how much margin each customer must produce and how fast resources must be used. For Lindqvist, the critical unit is a single ski package. A package of skis, bindings, boots, poles and a helmet costs $262 at wholesale. If it is rented for four seasons at $149, it brings in $596. Refurbishment each spring, including tuning, cleaning and replacing worn parts, costs about $38, or $152 over four years. At the end of its life, the package sells in the shop's used sale for about $55. Over its life, the package therefore produces $596 plus $55, or $651, against $262 plus $152, or $414, in direct costs, leaving $237 to cover rent, staff and other overhead.
The formula works only if packages are rented every season. A package that sits unrented for one winter loses $149 of revenue and still needs storage, which cuts its lifetime contribution to $88. Lindqvist's working assumption is that 85% of packages rent each season, which requires good forecasts of sizes and an active waitlist.
Comparing Three Models
The table compares the rental model with two other ways of serving the same families.
Rental produces the highest revenue per child and the strongest relationship but needs the most cash before the first customer arrives. Consignment is cheap to start but depends on families bringing in gear in the right sizes, which is exactly the uncertainty parents want to escape.
| Model | Revenue per child per season | Cash needed before opening | Relationship with family |
|---|---|---|---|
| Seasonal rental with swaps | $149 for a full ski package | High: inventory bought up front | Recurring every season |
| Selling new children's gear | About $90 gross margin on a $300 sale | Moderate: inventory, but it sells | One-time, repeated only as children grow |
| Consignment of used gear | About $35 commission per package | Low: families supply inventory | Occasional; depends on supply |
Can the Model Be Copied?
Teece (2010) points out that business models themselves are rarely protected by patents and can often be imitated, so a firm's advantage depends on combining a model with capabilities and strategy that are hard to reproduce. A sporting goods chain could offer seasonal rentals tomorrow. Lindqvist's protection lies elsewhere: her skill at fitting children quickly and accurately, the refurbishment process that keeps gear safe for four years, the referral relationship with the ski school and the trust of parents who return each fall. These are slow to build and harder to copy than a price list.
Risks the Canvas Revealed
Laying out the model also made its risks visible. Nearly all costs fall in the late summer and fall, when inventory must be bought and staff hired, while revenue arrives only as families pay for the season. A warm winter with little snow could leave packages unrented and refunds requested. Lost or badly damaged gear would erode the margin of each package, and a single injury blamed on poorly adjusted bindings could damage the trust the business depends on. Each of these risks points to a specific answer: a line of credit for the preseason, a clear refund policy, the deposit described below and binding adjustments done only by certified technicians.
What the Analysis Changed
Working through the canvas and the numbers led to four revisions. First, a refundable $50 deposit was added to reduce damage and late returns. Second, a summer bicycle rental for children was added to use the shop, staff and booking system in the off-season and spread fixed costs. Third, sturdy items such as poles and helmets will be kept for five seasons when they pass inspection, raising lifetime contribution. Fourth, reservations will open in August with a waitlist, so purchases can be matched to the sizes families actually need.
Conclusion
Lindqvist's venture has a clear value proposition and a profit formula that works if gear rents nearly every season. The canvas exposed the model's dependence on inventory planning and up-front cash, and the comparison showed why rental, despite those costs, serves families better than selling or consignment. Her advantage will come from skills and relationships rather than the model itself. With the revisions, the model is ready to be tested in a business plan.
References
Johnson, M. W., Christensen, C. M., & Kagermann, H. (2008). Reinventing your business model. Harvard Business Review, 86(12), 50-59.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: A handbook for visionaries, game changers, and challengers. Wiley.
Teece, D. J. (2010). Business models, business strategy and innovation. Long Range Planning, 43(2-3), 172-194. https://doi.org/10.1016/j.lrp.2009.07.003
Reading the BUS 484 Module 4 assignment instructions
The Aspen catalog presents BUS 484 as a study of how ventures are created and why they succeed, and a module on business models usually asks students to describe and evaluate how a venture will create, deliver and capture value. Your classroom holds the exact Module 4 wording; this example treats it as a canvas analysis of one venture with a financial test. Name the customer segment and the problem precisely. Work through each building block of the canvas, explaining choices rather than filling boxes with single words. Show the profit formula with real or reasonable numbers so a reader can see whether each customer is worth serving. Compare at least one alternative model. Consider what competitors could copy and what would be hard to copy. Close with the changes your analysis suggests, since a model that survives scrutiny untouched was probably not examined closely.
How the BUS 484 Module 4 example is put together
The paper opens with Megan Lindqvist, a former outdoor retail buyer, and the familiar problem of children outgrowing ski boots every winter. Osterwalder and Pigneur's canvas organizes nine sections, from customer segments and value propositions through key partners and cost structure. Johnson and colleagues' idea of the profit formula leads to a worked example: a ski package bought for $262 at wholesale, rented four seasons at $149, refurbished each spring for $38 and sold for $55. A three-row table compares rental, new sales and consignment on revenue per child, cash needed and customer relationship. Teece's point that models are often easy to imitate prompts a section on the fitting process, school partnerships and refurbishment skill. The conclusion revises the model by adding a deposit, a summer bike program, a fifth season for sturdy items and a waitlist.
Where the marks sit in the BUS 484 Module 4 rubric
A business model analysis is judged on a complete model, parts that connect logically, sound financial reasoning and an honest critique. This example covers all nine blocks and shows how each depends on another, for instance how the fitting service shapes both the customer relationship and the cost structure. The worked package economics give the profit formula real numbers, with each step stated so a grader can retrace it. Osterwalder and Pigneur's book, the Harvard Business Review article by Johnson, Christensen and Kagermann and Teece's Long Range Planning article each support a different part of the argument. The comparison table shows that the student considered alternatives. Most evaluation credit comes from the revision section, which shows the model changing in response to its own weak points rather than defending the first draft.
Common BUS 484 Module 4 mistakes, and how to avoid them
Students often treat the canvas as a form, writing a few words in each block and calling the work done. Instructors want the reasoning: why this segment, why this channel, how the revenue stream covers the cost structure. Another weak spot is the profit formula; a model can delight customers and still lose money on each one, so test it with numbers. Watch for value propositions that describe features instead of the customer's gain. Do not ignore partners and key resources, which often decide whether the model can be delivered at all. Compare your model with at least one alternative, since a choice means more when the reader sees what was rejected. If you are unsure about a cost, state your estimate and its source rather than leaving it out, because the cost left blank tends to be the one that sinks the model.
Write yours, or have the desk draft it
This paper is an original model document written by our desk, not a submitted student paper and not an official Aspen University document. Read it for the moves, then write your own to the instructions in your classroom. If you want one built to your exact prompt and rubric, the first custom sample is free and arrives in 24 to 48 hours.
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BUS 484 Module 4 questions, answered
What does BUS 484 Module 4 usually ask for?
Aspen's BUS 484 turns to business models in this module, so describing a venture's model, often with the business model canvas, and evaluating whether it can work is typical. Follow your classroom prompt for format.
What are the nine blocks of the business model canvas?
Customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships and cost structure.
What is a profit formula?
The part of a business model that shows how the venture makes money for the company, including revenue, cost structure, margin per unit and how quickly resources must turn over.
Where can I find a free BUS 484 Module 4 sample paper?
The complete analysis is shown above: a children's winter gear rental in Duluth, worked through all nine canvas blocks, with four-season numbers for one ski package and a comparison table.
Can a business model be copied?
Often yes. Teece notes that models are hard to protect with patents, so founders rely on skills, relationships and ways of operating that rivals find hard to reproduce.