In this article, we will describe the 9 steps required to create your first business model using the Business Model Canvas or Business Model Canvas.
What is the business model?
It is better to define the concept of “business model” first before dealing with the business model canvas.
A business model is defined as a plan for the successful operation of a business, identifying revenue sources, target customers, products, and financing details; It also explains how the main factors of a business fit together.
If you are thinking of writing all these things in one document, obviously many pages will be used to record all the information. Now think that you are going to enter all these details into your mind at the same time. You see, business models can easily confuse us.
The Business Model Canvas comes to market at this stage and helps you create a clear business model in just one page. The interesting thing is that this model can be used to describe any company; From the largest company in the world to a start-up company with only one employee.
What are the benefits of business model canvas?
It is understandable: because canvas is only one page and very visual and easily understood;
It is focused: it eliminates all the errors that may exist in a traditional business model and is excellent in all respects;
It is flexible: it can quickly and easily change your model and also draw different ideas;
It is customer-oriented: because it forces you to think about the value of the services you provide to your customers and how to achieve them;
It shows connections: because a single graphic canvas shows how different parts of the model are related to each other; If it is very difficult to recognize this issue with a traditional business plan;
It is fluent: because it is understandable and you will easily relate to it; You can also easily share the work outlook with your team.
How to use the business model canvas?
The first thing you should pay attention to is that the diagram consists of 9 structural elements, which we will describe in detail in each part below; In summary, each section attempts to answer the following questions:
Customer Segments: Who are your customers?
Value Proposition: Why do customers buy from you? What benefit do you have for them or what need do you provide?
Channels: How are your products and services marketed?
Customer Relationships: How do you attract, retain and increase your customers?
Revenue Streams: How does your business generate revenue?
Key Resources: Which unique strategic resources does your business have or need?
Key Activities: What unique strategic activities does your business perform to deliver its value proposition?
Key Partnerships: Which minor activities can you outsource to focus more on core activities?
Cost Structures: What are the main costs incurred by your business?
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