Make a presentation, pitch a VC, consult with your clients, or whatever you dream up. The Business Model Canvas is a strategic management and entrepreneurial tool. It allows you to describe, design, challenge, invent, and or pivot your business model. Â A practical tool to help you understand customers, design better value propositions, and find the right business model
It doesnâ€™t matter what you are working on, in as much as it is to augment your existing business model, or to conceive a new one. The business model canvas isÂ easy to use, high-quality visual tool that is designed to help you get a better understanding of the industry. Draw a comprehensive overview of the business model, map out your business modelâ€™s vision and build up a concrete basis for your business plan.
Don't just take my word for it
1M+Â people bought theÂ book, Â 22 000+Â activeÂ appÂ users,Â 2000+ purchasedÂ the onlineÂ courseÂ andÂ 350 000+Â people around the globe use the business canvas. And for any of you planning to attend theÂ Master ClassÂ in London 29th & 30th October, feel free toÂ drop me line email@example.comÂ
As Simon Sinek stated, â€świthout a vision, we can not set ourselves on a course for greatnessâ€ť. Meaning,Â before you start layingÂ thoseÂ foundations,Â you need to know or at least have an idea of how the final pantheonÂ will look. Business Model Generation teaches you how to systematically understand, design & differentiate your business and it's model.
Once you have this visionÂ and picture in your minds eye, you can now start to map out your business modelÂ andÂ build up a concrete basis for your agile business plan.
So how easy is it really...?Â
1. Video explainerÂ in less than 2 minutes - check out the 2min explainer!
Simple Sequential Moves, easy as 1,2,3
With the business model canvas, theÂ user can define his business model in 9 simpleÂ movesÂ with help to design, test, implement, and manage the business over itsÂ development lifecycle. It grants a business owner the benefit to properly articulate and describe the corporationâ€™s values, infrastructures, clients, assets and finances. A small or big business corporation can utilise the BMC as an effective communication tool to help grow the company and ensuring all major stakeholders are on the same page.
Stakeholders, employees and even consumers, with the BMC in place will help someone reading your business blueprint or piloting due diligence on your industry, emulate your philosophy and expectations. Not to mention be ableÂ to follow through your thought process as a business owner whenÂ deliberating strategy. The BMC is prepared to take care of this.
1. Customer segments:
This is designed to identify your customers and the people that generate values for your business. Essentially your target audience, this segment encourages you to list out the individuals that will be giving your business additional value. In combination with a clear vision, this segment becomes clear and niche rather than the traditional â€śI want to target everybodyâ€ť ideology.
2. Value propositions:
Connected to the customer segment is the promise of goods and services that you will deliver as a business to the target audience. This allows you to weight if what you are offering is valuable enough for the customer to demand it.
Allows for the identification of the method of transporting the value from value proposition to the customer segments, facilitating the trading between, business value and your goods or services. This is important as the channels of distributions has a lot of space for streamlining and yet it is still one of the biggest costs besides actual product costs. The ability to visualise the method of distribution will allow for an in-depth analysis of alternative and more efficient route of value distribution to your customers.
4. Customer Relationships:
This outlines your methods of retaining customers and building a bond with your audience. This is one of the most, essential methods of growth, as the best customers are the ones who already bought from you. Building a strong relationship with your existing customers will allow you to perform remarketing and follow-ups on new services/goods.
5. Revenue Streams:
Pricing mechanisms play a vital role in identifying business value, the revenue streams area allows the entrepreneur to identify the major method at which your business is obtaining value. This also helps manage finance and ensure the business is making profit with every transaction that takes place.
6. Key Resources:
This segment allows for the identification of core manufacturing components of the business highlighting how you will convert raw resources into valuable goods & services. Key resources will also help pinpoint the assets which are indispensable to your operation.
7. Key Activities:
All businesses have activities that enable it to perform and more importantly, perform better than the competitor. Highlighting crucial activities in your business will help with resource allocation decisions as it shows which parts of your organisation is worth investing more effort in.
8. Key Partnerships:
A good leader knows they canâ€™t build an empire alone, which is why this segment lets you look at which key partners will allow you to leverage your business models. Each of these partners will provide a unique quality value to your business. For example, be it cheaper manufacturing or higher quality products.
9. Cost structure:
To drive profit, a business owner must look at cost factors that influence the cost structure of your business model. Once the business infrastructure has been established, you can now look at ways to streamline the costs to optimise for drive business growth. Now that they key partners, activities and resources have been established, the entrepreneur can visualise and see how each of the key components can help benefit the cost structure.
It doesnâ€™t matter what you are working on, in as much as it is to augment your existing business model, or to conceive a new one. The business model canvas is easy to use, high-quality visual tool that is designed to help you get a better understanding of the industry, draw a comprehensive overview of the business model, map out your business modelâ€™s vision and build up a concrete basis for your business plan.
If you have a business model you would like to share, either attach the link in comments section of this post and/or send itÂ toÂ firstname.lastname@example.orgÂ we would love to hear from you.