Business Model Canvas
The business model canvas is a great tool to help you understand a business model in a straightforward, structured way. Using this canvas will lead to insights about the customers you serve, what value propositions are offered through what channels, and how your company makes money, explains BMI.
What you will receive in the free version:
- Canvas PDF file format only
What you will receive in the premium version:
- Business Model Canvas Spreasheet file + Canvas PDF file
You can also use the business model canvas to understand your own business model or that of a competitor! The Business Model Canvas was created by Alexander Osterwalder, of Strategyzer.
According to Alexander Cowan, the Business Model Canvas (BMC) gives you the structure of a business plan without the overhead and the improvisation of a ‘back of the napkin’ sketch without the fuzziness (and coffee rings). The Canvas has nine elements that together provides a pretty coherent view of a business’ key drivers–
- Customer Segments: Who are the customers? What do they think? See? Feel? Do?
- Value Propositions: What’s compelling about the proposition? Why do customers buy, use?
- Channels: How are these propositions promoted, sold and delivered? Why? Is it working?
- Customer Relationships: How do you interact with the customer through their ‘journey’?
- Revenue Streams: How does the business earn revenue from the value propositions?
- Key Activities: What uniquely strategic things does the business do to deliver its proposition?
- Key Resources: What unique strategic assets must the business have to compete?
- Key Partnerships: What can the company not do so it can focus on its Key Activities?
- Cost Structure: What are the business’ major cost drivers? How are they linked to revenue?
The Canvas is popular with entrepreneurs and intrapreneurs for business model innovation. Fundamentally, he finds it delivers three things:
- Focus: Stripping away the 40+ pages of ‘stuff’ in a traditional business plan, I’ve seen users of the BMC improve their clarify and focus on what’s driving the business (and what’s non-core and getting in the way).
- Flexibility: It’s alot easier to tweak the model and try things (from a planning perspective) with something that’s sitting on a single page.
- Transparency: Your team will have a much easier time understanding your business model and be much more likely to buy in to your vision when it’s laid out on a single page.
Checkout other business canvases in our Canvas Database