Business Model Canvas

What is the Business Model Canvas?

The business model canvas is essentially a visual chart with elements that contain the value proposition, structure, customers, and finances of your business, product, or service. These elements form what will be the building blocks of the organisation.

Key components of the Business Model Canvas

With a business model canvas, you create a visual representation of the makeup of your organisation. It is up to you whether to use the canvas to examine an entire business or specific products or services. The document is split into blocks, with each block given a title:

Customer Segments – Who are your customers? What is their shared commonality, such as problem, belief, or need?
Value Propositions – What makes your business stand out? Why should customers buy or use your products or services?
Channels – How do you promote these value propositions? How do you get them across to your audience? What are your sales channels, including the supply chain for customers to receive them?
Customer Relationships – How do you interact with your audience?
Revenue Streams – How do you earn revenue?
Key Activities – What unique things do you do to deliver those value propositions?
Key Resources – What are your assets? What are your strengths and opportunities? What are the things that enable you to compete?
Key Partnerships – What can you do to deliver on your Key Activities?
Cost Structure – What are your cost drivers? How is this in relation to your revenue?

How do you use the canvas?

To complete your business model canvas, you must visualise the different elements and fill out each of the blocks. You may need to conduct brainstorming sessions to ensure that each block is adequately filled out. It is a great idea to involve your team or any other relevant people in this exercise.

Print or recreate the canvas in a large format and use sticky notes to add, remove and change the section of different points or ideas. This will make things easier and will leave the template neat. Once you’re done, you’re not really done. You will need to revisit this canvas from time to time to update or modify it.