Business Model Canvas
Business Model Canvas is a strategic management model for developing new or documenting existing business models. This is a visualized summary of data and info describing the value, infrastructure, customers and financial data of a business or product. It helps businesses to align their activities by showing possible compromises or even making strategic decisions. The business model canvas was originally proposed by Alexander Osterwalder and since then many small variants have appeared.
We mentioned before the concept of visualization. It offers very easily and quickly the key points in each of the above categories that we need to complete. In this way and after completing the business model, someone “sees” the data easily and directly.
So the entrepreneur can see the pros and cons his data. Most importantly, without having to apply to the real life of the business the thoughts he or she has.
It is better to apply your plans to have a little taste of it that can lead you.
The order in which the fields in the business model canvas are completed, is of great importance. Follow the following order:
1st: Value Propositions
- What value do we provide to each customer group?
- What problem for each client group helps us to solve?
- What packages of products and / or services do we offer to each customer group?
- What needs do we meet for each customer group?
- What is the “minimum viable” product?
2nd: Customer Segments
- For which customer groups do we create value?
- Who are our most important customers?
- How do they differentiate between demographics and psychology?
3rd: Channels
- Through which channels do our customers want us to reach them?
- How do other companies reach them?
- Which channels are more efficient? At what cost?
- How do they relate to customer habits?
4th: Customer Relationships
- How do we manage the approach, obtain customer service growth and customer loyalty?
- How are they linked to other business model elements?
- How expensive is it?
5th: Revenue Streams
- For what value do customers accept to pay?
- What do they buy and what / how do they pay today?
- How would they prefer to pay?
- How does individual revenue contribute to total revenue per revenue stream?
6th: Key Resources
Which main resources / means they require:
- The proposed value?
- Communication and distribution channels?
- Customer relationships?
- Revenue streams?
7th: Key Partners
- Who are our main partners?
- Who are our main suppliers?
- What important means do we acquire from our partners?
- What are the main activities of our partners?
8th: Key Activities
- Which critical internal corporate processes require:
- The proposed value?
- Communication and distribution channels?
- Revenue streams?
9th: Cost Structure
- What are the most significant costs of our business model?
- Which of the tools required are the most expensive?
- Which of the required internal processes are the most expensive
A key element in entrepreneurship is to coexist the risk of instinct with the stability of data!
