A trick to understand the Business Model Canvas

The Business Model Canvas is a simple tool to create, analyze and optimize business models. It’ easy to grasp and understand. If you don’t know it yet, learn about it in this video course.

Here is just a quick tip to bring order into the 9 building blocks.

Photo by Gian. on Unsplash

When you first look at the Business Model Canvas, it looks like a rather random assembly of 9 elements of a business model. The key to making sense of it quickly is to see the bigger (and simpler) pattern overlaying these elements.

Divide the canvas into two equal parts with a vertical line through the “Value Proposition” element. Now you see, that the rightmost part (the “front stage”) consists of all elements facing the customer directly, while the leftmost part (the “back stage”) holds all elements you need to bring in order to make the front stage work. It’s like in a theater production, where the magic is created on the back stage, while the audience will only see the front stage 🎭.

The Value Proposition is the binding element for both sides. All efforts on the back stage cumulate in the value proposition of your product or service; and the value proposition is…