Business Model Canvas: Explained with Examples

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Got a new business idea, but don’t know how to put it to work? Want to improve your existing business model? Overwhelmed by writing your business plan? There is a one-page technique that can provide you the solution you are looking for, and that’s the business model canvas.

In this guide, you’ll have the Business Model Canvas explained, along with steps on how to create one. All business model canvas examples in the post can be edited online.

What is a Business Model Canvas

A business model is simply a plan describing how a business intends to make money. It explains who your customer base is and how you deliver value to them and the related details of financing. And the business model canvas lets you define these different components on a single page.   

The Business Model Canvas is a strategic management tool that lets you visualize and assess your business idea or concept. It’s a one-page document containing nine boxes that represent different fundamental elements of a business.  

The business model canvas beats the traditional business plan that spans across several pages, by offering a much easier way to understand the different core elements of a business.

The right side of the canvas focuses on the customer or the market (external factors that are not under your control) while the left side of the canvas focuses on the business (internal factors that are mostly under your control). In the middle, you get the value propositions that represent the exchange of value between your business and your customers.

The business model canvas was originally developed by Alex Osterwalder and Yves Pigneur and introduced in their book ‘ Business Model Generation ’ as a visual framework for planning, developing and testing the business model(s) of an organization.

Business Model Canvas Explained

What Are the Benefits of Using a Business Model Canvas

Why do you need a business model canvas? The answer is simple. The business model canvas offers several benefits for businesses and entrepreneurs. It is a valuable tool and provides a visual and structured approach to designing, analyzing, optimizing, and communicating your business model.

  • The business model canvas provides a comprehensive overview of a business model’s essential aspects. The BMC provides a quick outline of the business model and is devoid of unnecessary details compared to the traditional business plan.
  • The comprehensive overview also ensures that the team considers all required components of their business model and can identify gaps or areas for improvement.
  • The BMC allows the team to have a holistic and shared understanding of the business model while enabling them to align and collaborate effectively.
  • The visual nature of the business model canvas makes it easier to refer to and understand by anyone. The business model canvas combines all vital business model elements in a single, easy-to-understand canvas.
  • The BMC can be considered a strategic analysis tool as it enables you to examine a business model’s strengths, weaknesses, opportunities, and challenges.
  • It’s easier to edit and can be easily shared with employees and stakeholders.
  • The BMC is a flexible and adaptable tool that can be updated and revised as the business evolves. Keep your business agile and responsive to market changes and customer needs.
  • The business model canvas can be used by large corporations and startups with just a few employees.
  • The business model canvas effectively facilitates discussions among team members, investors, partners, customers, and other stakeholders. It clarifies how different aspects of the business are related and ensures a shared understanding of the business model.
  • You can use a BMC template to facilitate discussions and guide brainstorming brainstorming sessions to generate insights and ideas to refine the business model and make strategic decisions.
  • The BMC is action-oriented, encouraging businesses to identify activities and initiatives to improve their business model to drive business growth.
  • A business model canvas provides a structured approach for businesses to explore possibilities and experiment with new ideas. This encourages creativity and innovation, which in turn encourages team members to think outside the box.

How to Make a Business Model Canvas

Here’s a step-by-step guide on how to create a business canvas model.

Step 1: Gather your team and the required material Bring a team or a group of people from your company together to collaborate. It is better to bring in a diverse group to cover all aspects.

While you can create a business model canvas with whiteboards, sticky notes, and markers, using an online platform like Creately will ensure that your work can be accessed from anywhere, anytime. Create a workspace in Creately and provide editing/reviewing permission to start.

Step 2: Set the context Clearly define the purpose and the scope of what you want to map out and visualize in the business model canvas. Narrow down the business or idea you want to analyze with the team and its context.

Step 3: Draw the canvas Divide the workspace into nine equal sections to represent the nine building blocks of the business model canvas.

Step 4: Identify the key building blocks Label each section as customer segment, value proposition, channels, customer relationships, revenue streams, key resources, key activities, and cost structure.

Step 5: Fill in the canvas Work with your team to fill in each section of the canvas with relevant information. You can use data, keywords, diagrams, and more to represent ideas and concepts.

Step 6: Analyze and iterate Once your team has filled in the business model canvas, analyze the relationships to identify strengths, weaknesses, opportunities, and challenges. Discuss improvements and make adjustments as necessary.

Step 7: Finalize Finalize and use the model as a visual reference to communicate and align your business model with stakeholders. You can also use the model to make informed and strategic decisions and guide your business.

What are the Key Building Blocks of the Business Model Canvas?

There are nine building blocks in the business model canvas and they are:

Customer Segments

Customer relationships, revenue streams, key activities, key resources, key partners, cost structure.

  • Value Proposition

When filling out a Business Model Canvas, you will brainstorm and conduct research on each of these elements. The data you collect can be placed in each relevant section of the canvas. So have a business model canvas ready when you start the exercise.  

Business Model Canvas Template

Let’s look into what the 9 components of the BMC are in more detail.

These are the groups of people or companies that you are trying to target and sell your product or service to.

Segmenting your customers based on similarities such as geographical area, gender, age, behaviors, interests, etc. gives you the opportunity to better serve their needs, specifically by customizing the solution you are providing them.

After a thorough analysis of your customer segments, you can determine who you should serve and ignore. Then create customer personas for each of the selected customer segments.

Customer Persona Template for Business Model Canvas Explained

There are different customer segments a business model can target and they are;

  • Mass market: A business model that focuses on mass markets doesn’t group its customers into segments. Instead, it focuses on the general population or a large group of people with similar needs. For example, a product like a phone.  
  • Niche market: Here the focus is centered on a specific group of people with unique needs and traits. Here the value propositions, distribution channels, and customer relationships should be customized to meet their specific requirements. An example would be buyers of sports shoes.
  • Segmented: Based on slightly different needs, there could be different groups within the main customer segment. Accordingly, you can create different value propositions, distribution channels, etc. to meet the different needs of these segments.
  • Diversified: A diversified market segment includes customers with very different needs.
  • Multi-sided markets: this includes interdependent customer segments. For example, a credit card company caters to both their credit card holders as well as merchants who accept those cards.

Use STP Model templates for segmenting your market and developing ideal marketing campaigns

Visualize, assess, and update your business model. Collaborate on brainstorming with your team on your next business model innovation.

In this section, you need to establish the type of relationship you will have with each of your customer segments or how you will interact with them throughout their journey with your company.

There are several types of customer relationships

  • Personal assistance: you interact with the customer in person or by email, through phone call or other means.
  • Dedicated personal assistance: you assign a dedicated customer representative to an individual customer.  
  • Self-service: here you maintain no relationship with the customer, but provides what the customer needs to help themselves.
  • Automated services: this includes automated processes or machinery that helps customers perform services themselves.
  • Communities: these include online communities where customers can help each other solve their own problems with regard to the product or service.
  • Co-creation: here the company allows the customer to get involved in the designing or development of the product. For example, YouTube has given its users the opportunity to create content for its audience.

You can understand the kind of relationship your customer has with your company through a customer journey map . It will help you identify the different stages your customers go through when interacting with your company. And it will help you make sense of how to acquire, retain and grow your customers.

Customer Journey Map

This block is to describe how your company will communicate with and reach out to your customers. Channels are the touchpoints that let your customers connect with your company.

Channels play a role in raising awareness of your product or service among customers and delivering your value propositions to them. Channels can also be used to allow customers the avenue to buy products or services and offer post-purchase support.

There are two types of channels

  • Owned channels: company website, social media sites, in-house sales, etc.
  • Partner channels: partner-owned websites, wholesale distribution, retail, etc.

Revenues streams are the sources from which a company generates money by selling their product or service to the customers. And in this block, you should describe how you will earn revenue from your value propositions.  

A revenue stream can belong to one of the following revenue models,

  • Transaction-based revenue: made from customers who make a one-time payment
  • Recurring revenue: made from ongoing payments for continuing services or post-sale services

There are several ways you can generate revenue from

  • Asset sales: by selling the rights of ownership for a product to a buyer
  • Usage fee: by charging the customer for the use of its product or service
  • Subscription fee: by charging the customer for using its product regularly and consistently
  • Lending/ leasing/ renting: the customer pays to get exclusive rights to use an asset for a fixed period of time
  • Licensing: customer pays to get permission to use the company’s intellectual property
  • Brokerage fees: revenue generated by acting as an intermediary between two or more parties
  • Advertising: by charging the customer to advertise a product, service or brand using company platforms

What are the activities/ tasks that need to be completed to fulfill your business purpose? In this section, you should list down all the key activities you need to do to make your business model work.

These key activities should focus on fulfilling its value proposition, reaching customer segments and maintaining customer relationships, and generating revenue.

There are 3 categories of key activities;

  • Production: designing, manufacturing and delivering a product in significant quantities and/ or of superior quality.
  • Problem-solving: finding new solutions to individual problems faced by customers.
  • Platform/ network: Creating and maintaining platforms. For example, Microsoft provides a reliable operating system to support third-party software products.

This is where you list down which key resources or the main inputs you need to carry out your key activities in order to create your value proposition.

There are several types of key resources and they are

  • Human (employees)
  • Financial (cash, lines of credit, etc.)
  • Intellectual (brand, patents, IP, copyright)
  • Physical (equipment, inventory, buildings)

Key partners are the external companies or suppliers that will help you carry out your key activities. These partnerships are forged in oder to reduce risks and acquire resources.

Types of partnerships are

  • Strategic alliance: partnership between non-competitors
  • Coopetition: strategic partnership between partners
  • Joint ventures: partners developing a new business
  • Buyer-supplier relationships: ensure reliable supplies

In this block, you identify all the costs associated with operating your business model.

You’ll need to focus on evaluating the cost of creating and delivering your value propositions, creating revenue streams, and maintaining customer relationships. And this will be easier to do so once you have defined your key resources, activities, and partners.  

Businesses can either be cost-driven (focuses on minimizing costs whenever possible) and value-driven (focuses on providing maximum value to the customer).

Value Propositions

This is the building block that is at the heart of the business model canvas. And it represents your unique solution (product or service) for a problem faced by a customer segment, or that creates value for the customer segment.

A value proposition should be unique or should be different from that of your competitors. If you are offering a new product, it should be innovative and disruptive. And if you are offering a product that already exists in the market, it should stand out with new features and attributes.

Value propositions can be either quantitative (price and speed of service) or qualitative (customer experience or design).

Value Proposition Canvas

What to Avoid When Creating a Business Model Canvas

One thing to remember when creating a business model canvas is that it is a concise and focused document. It is designed to capture key elements of a business model and, as such, should not include detailed information. Some of the items to avoid include,

  • Detailed financial projections such as revenue forecasts, cost breakdowns, and financial ratios. Revenue streams and cost structure should be represented at a high level, providing an overview rather than detailed projections.
  • Detailed operational processes such as standard operating procedures of a business. The BMC focuses on the strategic and conceptual aspects.
  • Comprehensive marketing or sales strategies. The business model canvas does not provide space for comprehensive marketing or sales strategies. These should be included in marketing or sales plans, which allow you to expand into more details.
  • Legal or regulatory details such as intellectual property, licensing agreements, or compliance requirements. As these require more detailed and specialized attention, they are better suited to be addressed in separate legal or regulatory documents.
  • Long-term strategic goals or vision statements. While the canvas helps to align the business model with the overall strategy, it should focus on the immediate and tangible aspects.
  • Irrelevant or unnecessary information that does not directly relate to the business model. Including extra or unnecessary information can clutter the BMC and make it less effective in communicating the core elements.

What Are Your Thoughts on the Business Model Canvas?

Once you have completed your business model canvas, you can share it with your organization and stakeholders and get their feedback as well. The business model canvas is a living document, therefore after completing it you need to revisit and ensure that it is relevant, updated and accurate.

What best practices do you follow when creating a business model canvas? Do share your tips with us in the comments section below.

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FAQs About the Business Model Canvas

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The Business Model Canvas

What is the business model canvas.

The business model canvas is a tool designers use to map out a business or product’s key actors, activities and resources, the value proposition for target customers, customer relationships, channels involved and financial matters. It gives an overview to help identify requirements to deliver the service and more.

“A business model describes the rationale of how an organization creates, delivers, and captures value.” — Alexander Osterwalder, Co-creator of the Business Model Canvas  

Learn about the business model canvas and how it helps in design.

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The Business Model Canvas – Flexible Chart, Early-Warning System and More 

In service design , two tools are essential to use early in your design process: the business model canvas and the value proposition canvas . You can use the business model canvas to build an overview of changes to be made to an existing business (e.g., a merger) or of a totally new business opportunity or market gap . At the start of your design process, it’s vital to map out the business model of your service to see how it will fit into the marketplace. You’ll also need to ensure what you propose can bring maximum value to both your customers and business, and keep doing so in terms of customer retention, profitability and more.

To gain the most accurate vision of a proposed product or service, it’s essential to understand all the components and dynamics of not only the customer experience but also the service as a whole ecosystem . This ecosystem contains all the channels and touchpoints that must work together to deliver and sustain maximum value to the customer.

This canvas gives you several important advantages, namely these:

It’s collaborative – so you can bring the various partners together on the same page to generate and analyze ideas, and have an early testing ground for concepts before you advance to service staging a prototype.

It’s human-centered – so you can keep close track on how to create and maximize value for customers as well as stakeholders and other partners.

It makes it easier to collect rich data – if you have a clear purpose and strategy in mind. 

A business model canvas typically contains 10 boxes:

Key Partners – The people who will help you fulfill the key activities, using the key resources. 

Key Activities – Those vital actions that go into the everyday business to get things done; these are all the activities needed to realize and maintain the value proposition, and to power everything else involved.

Key Resources – The tools needed to get those things done, stretching across all areas the canvas covers to include, for example, customer retention.

Value Proposition – The item you think will create value for your customer: e.g., a new idea, a price drop. This is a summary of what your business will deliver to customers, and feeds into the value proposition canvas, the tool you’ll use to expand this.

Customer Relationships – Where you envision the relationship each customer segment expects: e.g., customer acquisition, retention and upselling (i.e., How do you get customers? How do you keep customers? How do you continue to create value for them?).

(Note: boxes 5 and 4 are closely linked as everything you do revolves around retaining the customer and considering the customer lifecycle.)

Customer Segments – Your most important customers (e.g., seniors); consider the value of personas here.

Channels – How you deliver the value proposition. Will it be online, through physical means or a combination? Here, you identify which channels are the best (both desirable for customers as well as cost-efficient and cost-effective for the brand).

Cost Structure – Here you find the most essential cost drivers. This allows you to consider the return on investment (ROI).

Revenue Streams – Where you find potential revenue sources (e.g., advertising). 

Sustainability – How sustainable your offering is overall, to the environment, to the social good, etc.

business model canvas design

© Strategyzer AG, modified, CC-BY-SA-3.0

How to Build a Business Model Canvas

For the best results, follow these guidelines and aim to fill in all the gaps, looking out for cause-and-effect relationships that run between boxes/throughout:

Complete the top seven boxes (Key Partners to Customer Segments) – using all the information you can gather from your research.

Complete the next boxes:  

Cost Structure – Determine the cost drivers from the Key Partners, Activities and Resources boxes; and

Revenue Streams – Determine these from the Customer Relationships, Customer Segments and Channels boxes.

Once you have established these, you can work to estimate them in monetary terms.

Complete the Sustainability box – according to the insights you’ve found.  

Here’s an example of a business model canvas as a work in progress:

business model canvas design

© Interaction Design Foundation, CC BY-NC-SA 3.0

Overall, remember your canvas is a flexible tool. It’s also a living document that you can revisit and use to find the most effective alternatives. With a clear sense of goals, a keen eye for detail and ear for input, and a readiness to refine this canvas, you can use it to fine-tune the best service prototype every time.

Learn More about The Business Model Canvas

Take our Service Design course , featuring a template for service blueprints.

Read this example-rich piece by experienced strategy designer Justin Lokitz for tips on using the business model canvas .

Find some additional tips on how to make the most of your business model canvas here .

Literature on the Business Model Canvas

Here’s the entire UX literature on the Business Model Canvas by the Interaction Design Foundation, collated in one place:

Learn more about the Business Model Canvas

Take a deep dive into Business Model Canvas with our course Service Design: How to Design Integrated Service Experiences .

Services are everywhere! When you get a new passport, order a pizza or make a reservation on AirBnB, you're engaging with services. How those services are designed is crucial to whether they provide a pleasant experience or an exasperating one. The experience of a service is essential to its success or failure no matter if your goal is to gain and retain customers for your app or to design an efficient waiting system for a doctor’s office.

In a service design process, you use an in-depth understanding of the business and its customers to ensure that all the touchpoints of your service are perfect and, just as importantly, that your organization can deliver a great service experience every time . It’s not just about designing the customer interactions; you also need to design the entire ecosystem surrounding those interactions.

In this course, you’ll learn how to go through a robust service design process and which methods to use at each step along the way. You’ll also learn how to create a service design culture in your organization and set up a service design team . We’ll provide you with lots of case studies to learn from as well as interviews with top designers in the field. For each practical method, you’ll get downloadable templates that guide you on how to use the methods in your own work.

This course contains a series of practical exercises that build on one another to create a complete service design project . The exercises are optional, but you’ll get invaluable hands-on experience with the methods you encounter in this course if you complete them, because they will teach you to take your first steps as a service designer. What’s equally important is that you can use your work as a case study for your portfolio to showcase your abilities to future employers! A portfolio is essential if you want to step into or move ahead in a career in service design.

Your primary instructor in the course is Frank Spillers . Frank is CXO of award-winning design agency Experience Dynamics and a service design expert who has consulted with companies all over the world. Much of the written learning material also comes from John Zimmerman and Jodi Forlizzi , both Professors in Human-Computer Interaction at Carnegie Mellon University and highly influential in establishing design research as we know it today.

You’ll earn a verifiable and industry-trusted Course Certificate once you complete the course. You can highlight it on your resume, CV, LinkedIn profile or on your website.

All open-source articles on the Business Model Canvas

Service design - design is not just for products.

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Business Model Canvas Template

Determine and align your business priorities in a simple and visual way with the Business Model Canvas Template.

Trusted by 65M+ users and leading companies

About the Business Model Canvas Template

The Business Model Canvas template, designed by Alexander Osterwalder and Yves Pigneur, provides a strategic and powerful way to understand your business. The Business Model Canvas (BMC)  displays a business model, and it contains nine blocks: fill in each one using stickies, links, sketches, pictures, and videos. Use this business model template collaboratively with your team to clearly explain and visualize your business.

How to use a Business Model Canvas template: 9 key elements

The canvas provides nine key business elements to illustrate, summarize, and track. The nine building blocks of a BMC template are:

1. Key partners

List the key partnerships your business leverages or relies upon for success. Include the resources or value your business gets from these partnerships.

2. Key activities

Summarize the key activities that allow your business to provide services and deliver on your value proposition.

3. Key resources

List the key resources your business relies upon or uses in order to operate and provide services.

4. Key propositions

Summarize the different value propositions that set your business apart from your competition.

5. Customer relationships

Define and describe the primary relationships you have with your customers, including how you interact with them, how these interactions differ among different types of customers, what different customer needs are, and the level of support the different customers receive.

6. Channels

Detail how your customers are reached, how your services are provided, your different distribution channels, and how your value proposition is delivered.

7. Customer segments

Define the ideal customer personas your value proposition is intended to benefit, then describe the key differences between these segments and potential steps in the customer journey.

8. Cost structure

Identify the primary costs associated with operating your business and providing your services, then detail the relationship between these costs and other business functions.

9. Revenue streams

Describe how your business generates revenue through the delivery of your value proposition.

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When do you use the Business Model Canvas template?

Business Model Canvases are not intended to serve in place of a business plan . Instead, the BMC template is used to summarize and visually illustrate the most important information of a business model and to provide centralized ongoing clarity.

This canvas is appropriate for illustrating existing business models, regardless of whether the business is new. The BMC template is also appropriate for visualizing new business models for startups, as it helps organize and consolidate ideas around your key functions. Keep in mind that the Business Model Canvas should be reviewed periodically, as all the factors listed can change over time.

5 Benefits of creating a Business Model Canvas online

Filling in the BMC template makes it easy to visually and collaboratively outline the core aspects of your business's unique value proposition. Here are a few benefits of using the template:

1. Provides a structure for ideation

The Business Model Canvas is extremely useful for structuring your business model visually. This helps at different stages of defining your business canvas and makes it easy to keep up-to-date as strategies shift.

2. Focuses you on your value proposition

It can be easy to get distracted by the varying factors involved in running a business. The value proposition is at the heart of the entire Business Model Canvas template, so you can continually focus on why your business exists. You should use your value proposition as a guiding star to give you direction as you fill out all other parts of the canvas.

3. Fast to complete

Whether or not your business model is clearly defined or you are testing out different business models, the BMC template can be completed quickly and helps you generate new business ideas. This allows for quicker feedback, quicker ideation, and faster iteration.

4. Provides a holistic view of your business

With the Business Model Canvas, you can see how all of the elements of your business are interrelated and inform or affect each other. This provides you with a better understanding of how your business operates as a system or ecosystem.

5. Gives you a central document to share externally

Once you’ve filled out your Business Model Canvas template, you can share it widely, get feedback, and make any needed updates. Because the visual presentation is easy to grasp and understand, teams, stakeholders, advisors, and partners should find the canvas relatively straightforward and easy to understand.

Can I customize the template to suit my business or add more details?

Yes, you can customize the BMC to match your specific business needs and add additional notes or details as necessary.

How often should I update or review the BMC for my business?

The Business Model Canvas (BMC) is a dynamic tool that should be reviewed and updated regularly to reflect changes in your business model or market.

Can I use the BMC template for both startups and established businesses?

Yes, the BMC is suitable for both startups and established companies. It's a versatile tool that can be used for business model development, refinement, and innovation at any stage.

Is there a way to link external resources or documentation directly in the Business Model Canvas template?

Yes, in Miro, you can embed external links directly onto the canvas. This is particularly useful if you want to provide more detailed information or references for specific model sections or business cases.

Can I export my Business Model Canvas to share with stakeholders not using Miro?

Absolutely! Miro provides multiple export options for your canvas. You can save your Business Model Canvas as an image (PNG, JPEG), a PDF, or even a CSV file for the data.

Are there any integrations available to enhance my use of the Business Model Canvas template in Miro?

Yes, Miro offers a suite of integrations with popular tools and platforms to streamline your workflow. For example, you can integrate with tools like Slack for team communication, Google Drive for document storage, or Jira for project management. Using these integrations, you can seamlessly bring in external data, notify team members of updates, or even automate specific tasks directly within your Business Model Canvas board.

Get started with this template right now.

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What is a business model canvas? Overview with template

business model canvas design

In 2013, I co-founded a startup in the Indian online gifting industry with three friends. It was my first involvement with a startup. Startups are fascinating — they’re small, agile, and quick. However, another key feature of startups is their ability to creatively solve problems.

What Is A Business Model Canvas Overview With Template

At that time, we aimed to target India’s gifting market, which was more than 90 percent offline. We had plans to establish an online shop selling a wide variety of gifts. But before we got started, we decided to document our idea. Amidst many templates, we discovered the business model canvas, a lean tool for outlining business models. It was neat, straightforward, and free. This tool brought remarkable clarity to our idea.

Despite shutting down the startup in 2015, I gained a wealth of knowledge during those two years. One major takeaway was the tools and techniques I learned along the way. The business model canvas was one of them. Even after seven years, I still use the business model canvas in my role as a product manager.

In this blog post, we’ll explore how product managers and entrepreneurs can effectively use a business model canvas.

What is a business model canvas?

The business model canvas is a template introduced by Alexander Osterwalder in 2005 as part of his Ph.D. studies under the supervision of Yves Pigneur. The business model canvas outlines nine crucial elements of a business model in an easy-to-understand visual template: customer segments, value proposition, channels, customer relationships, revenue streams, key activities, key resources, key partnerships, and cost structure.

Various companies, including startups, scale-ups, and large software organizations, have utilized this template since its inception to simplify their business strategy and improve their understanding of the overall business structure. However, before we delve into what a business model canvas entails, it’s important to comprehend why simplifying business strategy and structure is essential.

The last company I was part of employed 10,000 individuals. It ran more than 20 different businesses, each generating millions in revenue. When operating on such a large scale, it’s vital to have a clear strategy that outlines the business models. This strategy should define who the customers are, identify key partners, elaborate on the value proposition, and explain the cost structure, among other things.

The strategic blueprint serves as a go-to source of information whenever confusion arises. While this is true for large corporations, it’s equally applicable to smaller scale-ups and startups. It’s crucial to understand the business strategy and models from the onset. This comprehension aids in crafting a framework that can be applied when tackling complex issues or determining priorities.

This is where the business model canvas proves invaluable. It assists in laying out business models in a straightforward, user-friendly format.

What are the 9 components of the business model canvas?

The business model canvas comprises nine key elements:

Customer segments

Value proposition, customer relationships, revenue streams, key activities, key resources, key partnerships, cost structure.

9 Components Of A Business Model Canvas

These components cover the three main areas of a business: desirability, viability, and feasibility. The nine components also aim to bring transparency and understanding to a broad audience, which can include upper management and internal teams such as engineering, design, product management, marketing, sales, legal, and customer service.

Collectively, these elements capture the essence of a business model. They help map the relationship between these elements and how they intertwine with one another. Let’s take a more in-depth look at each element.

Everything starts with the customers, which is why this is the first element of the business model canvas. This component identifies the different customer segments a company targets. These can vary across business models.

business model canvas design

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For example, while working at Zalando (one of Europe’s largest fashion eCommerce companies), there were multiple business models. One focused on end customers, while another focused on partners selling products on Zalando. The business model canvas helps outline these customer segments in a single snapshot.

Try to avoid being too detailed. Mention who the partners are, but there’s no need to note the demographics, age, gender, etc., of the customer segment unless required.

This term refers to the unique advantage or value a business provides. It’s what sets the business apart from competitors. This could be a product or a service that the business uses to solve a customer’s problem.

For instance, Uber’s value proposition is its ability to help customers travel from point A to point B on demand.

Channels are the various ways through which a business intends to interact with customers and/or partners. For Airbnb, their website and apps are the primary channels. But they also leverage social media, offline hoardings, email marketing, and community forums to reach their audience.

This element addresses the various ways a business interacts with customers to improve satisfaction and the overall experience. Monitoring customer feedback and how they interact with a company’s product is critical in a competitive landscape.

Amazon, a company that prioritizes customer focus, includes 24/7 customer support, personalized recommendations, regular newsletters, ratings and reviews, Amazon Prime membership, and community engagement as part of its customer relationships.

This component lists the different ways a company plans to generate revenue. For Google, revenue streams include advertising, the Google Play Store, Google Cloud, and hardware sales.

This section includes all necessary activities needed to keep the business functioning smoothly and to deliver value to all users. Microsoft’s key activities, for example, include software development, hardware development, cloud computing, gaming, research and development, and VR.

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As the name implies, key resources are the essential tangible and intangible resources needed to keep the business operational. These resources incur costs, making their documentation vital. An online gift-selling company would require a website/app, collaborations with manufacturers, and marketing capabilities.

This element focuses on the partnerships or collaborations a business might have with other companies to better serve customers, reduce risks, and increase profits. For Facebook, key partners include regular users who generate content, advertisers, and influencers who create content at scale.

This element outlines the costs and expenses associated with a business. For companies like Google and Facebook, costs can be substantial given their value propositions. While it may be difficult to capture the cost structure of these giants in a small space, it becomes easier and beneficial for smaller companies.

For example, McDonald’s cost structure would include manufacturing costs, service-based costs (such as employee costs), franchise costs, and infrastructure costs.

What are the benefits of using a business model canvas?

Indeed, using a business model canvas offers many advantages for businesses of all sizes. To summarize, some of the key benefits include:

Benefits Of Using A Business Model Canvas

Visual representation

A business model canvas provides a visual overview of all the critical elements of a business. This allows stakeholders to see how these elements relate to each other, facilitating understanding and decision-making.

The visual nature of the canvas makes it accessible to various stakeholders, including top management, engineers, designers, customer service, and operations teams.

Clear collaboration, communication, and alignment

Developing and managing products often require the input and collaboration of multiple stakeholders . A business model canvas provides a clear, concise tool for aligning all these parties, promoting better communication and collaboration. It also helps product managers secure buy-in from stakeholders at an early stage, reducing risks and fostering better alignment, especially in a cross-functional environment.

Strategic long-term thinking and analysis

By design, a business model canvas encourages long-term strategic thinking. It helps identify business strengths and weaknesses, facilitates brainstorming new ideas and improvements, and shapes long-term strategies to better serve customers.

Flexibility

Businesses and ideas evolve, and a business model canvas accommodates these changes. It offers a flexible template that can be easily modified, often featuring version numbers to track document evolution. This flexibility supports an iterative approach, ensuring the canvas captures all necessary information as the business evolves.

Business model canvas template

The internet is replete with various business model templates. A quick Google search will return 34,200,000 results. Here’s a quick template that I created on Google Sheets:

Business Model Canvas Template

Click here to access the business model canvas template. You can click File > Make a copy to download the canvas and customize it for your business.

Example of successful use of the business model canvas in product management

Here’s an example of a business model canvas for Facebook:

Business Model Canvas Facebook

How do I create a business model canvas for my business?

After you fill out the nine components we went over earlier, there are some other key points to keep in mind to successfully create a business canvas model.

Involve all the stakeholders early on

Since a business model canvas has elements ranging from tech to marketing, sales, and customer service, it’s important to involve these stakeholders right at the start. This reduces the risk and helps to bring everyone on the same page.

Keep it simple

Don’t use complex sentences while explaining the pointers under every element. Use simple and short words. Simplicity will make it easier for the audience to consume the information effectively.

Be data-driven

Let every pointer included in the business model canvas be data-driven. This will help lay down a strong foundation for long-term decision-making.

Focus on an iterative approach

It’s difficult to come up with a business model canvas right at the first go. Hence, it’s important to keep an iterative approach and let the document evolve depending on the feedback from the contributors. You can use versioning to keep track of all the changes.

Consider external factors

Currently, the growth of many businesses is slow and it’s projected to be the same for the entire year. It’s important to consider these external factors while coming up with a business model canvas since it helps to consider factors that might not be in control of a business.

Conclusion and key takeaways

A business model canvas can be a very effective tool if used right away. Product managers can use this tool before starting a product or a feature. It can help them have clarity on the idea before the actual development work starts.

Also, since it involves all the major stakeholders right at the start, a business model canvas can help mitigate risks early on. It’s a great tool for validating business ideas, products, or a feature.

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Home Blog Business What is a Business Model Canvas? Quick Guide + Examples

What is a Business Model Canvas? Quick Guide + Examples

What is a Business Model Canvas

Based on the work of Alexander Osterwalder, a Business Model Canvas , or BMC for short, is a diagram used to visualize a business model; it allows structured organization and a quick method of evaluation and reflection on the effectiveness of a Business Model. The use and study of Business Model Canvas Examples allows us to understand it in a complete way and apply it to different types of organizations.

The Role of the Business Model Canvas

What are the benefits of using a business model canvas, 1. customer segments, 2. value propositions, 3. customer relationships, 4. channels, 5. revenue streams, 6. key activities, 7. key resources, 8. key partnerships, 9. cost structure, the power of a bmc in entrepreneurship: visualize the business model, mcdonald’s.

  • How to Utilize a Business Model Canvas for your Success

Business Model Canvas PowerPoint Templates

Whether it be in small business entrepreneurship or large corporate product launches, the business model sits at the center. The one thing that stands at the very heart of the daily operations of an organization, is a model that dictates where the opportunity lies and how the company effectively acts on it at each step in the process.

The very best professionals will have all of this knowledge and action driving their decisions. However, the original business model one may follow may not always be applicable to the obstacles that an organization faces, thus it’s incredibly useful to fully display organizational structure and operations.

The Business Model Canvas is a powerful tool for businesses of all sizes and industries. Here are some key benefits of using this visual framework:

Simplifies Complexity: Business models can be intricate, with various elements and interactions. The BMC simplifies this complexity by breaking down the model into nine essential building blocks. This visual representation makes it easier for entrepreneurs, team members, and stakeholders to grasp the core components of the business without getting lost in a lengthy business plan. It’s a powerful tool for distilling complex ideas into a clear, concise format.

Enhances Focus: When creating a BMC, you’re prompted to think critically about each building block, such as customer segments, value propositions, and revenue streams. This process encourages a deep understanding of how these components interact and depend on each other. By explicitly defining these elements, you gain a sharper focus on your business strategy and objectives. It helps you identify gaps, redundancies, or areas where your model can be refined.

Promotes Collaboration: The BMC is designed to be a collaborative tool. It’s not something a single person creates in isolation; instead, it encourages cross-functional teams to work together. Each team member can contribute their expertise to fill in the relevant sections. This collaborative approach ensures that everyone involved in the project shares a common understanding of the business model, which is essential for successful execution.

Iterative and Adaptable: Business environments are dynamic, and your business model should be too. The BMC supports an iterative approach, allowing you to make changes and updates as needed. For instance, if market conditions change, you can easily adjust your value propositions or customer segments. It’s a flexible tool that accommodates experimentation and learning. You can use it to test different assumptions and hypotheses about your business and refine your model accordingly.

Cost-Effective: Creating a traditional business plan can be a time-consuming and expensive process. In contrast, developing a BMC is a cost-effective alternative. It doesn’t require extensive resources or financial investments. This makes it particularly valuable for startups and small businesses with limited budgets. It’s a pragmatic way to initiate strategic planning, especially in the early stages of a venture when resources are scarce.

The Basics of the Business Model Canvas

Whether one is creating an all-new business model, comparing a pre-existing model, or adjusting a model to improve value, the BMC excels in keeping anyone invested in the business on track without wasting time and focus. By displaying only, the most critical pieces in business operations or a product, this tool is both a time saver and a method to sharpen your awareness of expectations vs. reality.

Here is the Business Model Canvas explained: There are nine sections in a BMC, each containing a specified topic of information that composes the core of any business model.

PPT Template Business Model Canvas

This section contains the information related to the core target audience that you are selling to. Simple and traditional segmentation analysis must be done to identify the top segments of the model. Start simple with questions like Which are the demographics of the major customer groups being targeted? Why are they going to be interested in the product or service? In essence, how well does the model comprehend who is being sold to? It is crucial that you identify clearly the segments as when facing reality, you will need to focus only in a few (1 or 2) to really test your model without a full operation in place.

Create a list of the unique business value propositions you will offer. Why is the idea or company valuable? What makes it stand above competitors? If there aren’t any direct competitors, what gaps are being filled in given markets?

This section could be extremely lengthy, depending on the business model, but should only contain the most central concepts at the heart of the model that attract customers or generate revenues. This section will contain the aspects of the business that relieve a customer’s pains. If you’re struggling to identify what is most important, consider using a Value Proposition Canvas, another easy-to-visual tool that helps establish your target audience with your strengths. Focus on solving a real pain for the segments identified.

The information of this section should refer to how to connect segments and the value proposition. During the analysis, you should be asking questions like How are customers convinced that your product or organization has the advertised special qualities? What methods are used to interact with them? How does an audience engage with each strategy in the product lifecycle? Additionally, how is customer engagement tracked?

Once the customer is convinced of the goods or services, how would you deliver them? This should include every step of the process it takes to make the financial transaction and value delivery possible. Is there a separate supplier? Who distributes the product? How is it displayed? Think about what the model requires from start to finish in order to make a sale.

If the customer connects with the product or service, and they want to proceed with doing business, then how does the actual exchange of money happen? How is the cash flow tracked? Are there any middlemen between the sale and the income to the business?

Business Model Canvas Diagram for PowerPoint

Source: Editable Business Model Canvas PowerPoint Template

This section should include specific activities that the organization will do to create value. Unlike the Value Propositions, it’s not just about a new product or business practice, but rather the day-to-day operations that each team will take.

Similar to Key Activities but focusing on assets that are used. Is there a special supplier? Is there access to any materials or a local storefront that puts you in an advantageous position? Do you have a special intellectual property or patent that introduces new knowledge into the niche?

For areas that may be lacking, or areas that are too costly for the business to manage by itself, what can be outsourced to partners to focus on? Which areas would it be more cost-efficient to hire from supporting businesses? Specifically, identify model strengths, maximize time and money on them, and move identified weaknesses to connected partners that can address them better or solve them altogether.

Finally, what are the major expenses in the model? Are they a flat fee, or are they a variable cost? This may factor into previous sections, like key activities, resources, and partnerships.

Additionally, how does this relate to the Revenue Streams? How will the predicted costs vs. the actual be monitored? Most importantly, what will be done if costs outweigh the incoming funds?

Creating a Business Model Canvas involves analyzing each of these sections individually and as a whole, and connecting the dots between them.

Introducing a new business or product to the world is no small undertaking, especially when you consider how much competition and other new ideas are thrown into the world on a regular basis.

This also means keeping the model current and responsive. A business model, after all, is only a well-educated guess on how to generate success from a demand. If reality does not match up to the prediction, then even the very best business models are useless. A BMC is your abstract representation of how a business delivers value to customers to help them solve problems.

Steven Blank’s book to entrepreneurs and business leaders, ‘Four Steps to the Epiphany’ , demonstrates the difference between those who watch and listen to their model in action, and those who convince themselves that their business model is flawless, and the world will adjust to follow it instead. The fact is, you may have the most amazing ideas in the world, but it won’t matter if you aren’t paying attention to unforeseen challenges that arise between conception and actualization of a successful model.

The BMC is an excellent tool to get away from the guesswork, and out into the metaphorical streets. It allows an individual or team to compare expectations with reality, to double-check targets and see if those targets are still manageable, and it gives an opportunity to make adjustments to a business model before it’s too late.

This practice is called, ‘Get out of the building’, an important part of the Lean Startup Methodology . It means to develop a BMC and test it against reality. For this to work, you need to create an MVP ( Minimum Viable Product ) that materializes your Value proposition and tests it against real-life customers. Testing means that they should really purchase the MVP and that they complete the different sections of the BMC for true validation. This process is really iterative, and it helps entrepreneurs and business executives make the adjustments necessary to really market a value proposition, reducing the risk of mounting a full-scale operation.

Get Out Of The Building PowerPoint Template

Business Model Canvas Examples

By using examples of Business Model Canvas, we can evaluate business models and identify just what changes need to be made to the model in order to ensure growth and success. In addition, analyzing Business Model Canvas examples and being able to study success stories is beneficial to be able to apply it in different industries, helping you better understand Business Model Canvas explained with examples.

Let’s take a look at the BMC Example of the MoviePass company, which launched with the idea to sell a monthly service to the general public for daily movie tickets at major theater chains for a flat monthly membership fee. The company reasoned that they could benefit two groups, the average moviegoer would be able to see more movies, and movie theaters themselves would see better attendance. This innovative approach required the development of robust membership software to handle the logistics and subscriptions efficiently, making it one of the notable examples of a business model.

In theory, it sounds like a reasonable concept, but in reality, MoviePass had not developed a functional business model which resulted in a poor performance against new technologies. There was no constant evaluation to keep track of their cash flow, and by failing to keep the company growing fast enough, it couldn’t support the necessary costs. Perhaps if leadership had followed a BMC these issues may have been recognized earlier.

Business Model Canvas Example - MoviePass

By using the BMC, MoviePass could have visualized earlier that the business model was in need of a pivot, a change to a section of the model in order to address an issue. In MoviePass’s case, areas like cash flow and customer acquisition had some gaps that required a solution. Had the company been more aware of its business model, it might have seen a need for a Minimum Viable Product (MVP) where they could test the results of their ideas with a few early adopters.

An MVP is the bare bones of a product or service that can provide invaluable information about how a small group of customers reacts. By having a testing period of limited engagement, a business can limit costs while drastically improving knowledge on how to proceed. Had MoviePass used this, they might’ve been able to observe early on that some customers used their service to the max, purchasing a movie ticket per day, far outweighing the profit of their service from the cost of providing it.

The pivot would adjust to their business model, and a new MVP could be created to test the new approach. This new iteration of the business may have changed the original direction of the company. Through each pivot and each new iteration of the model, MoviePass BMC would adjust accordingly, allowing an easy method in which to keep track of the major changes without getting overwhelmed in all the details that lay underneath each educated decision.

There are, however, examples of well-crafted business models that can be observed on a BMC. Let’s take a company that has spread its business model all over the world and has undoubtedly enacted countless pivots and iterations of the business model in order to evolve, adapt, and thrive over the years: McDonald’s, as one of the prime business model examples.

When thinking about the massive scope of McDonald’s, it’s both interesting and telling of how the BMC can still capture the essence of their business model. McDonald’s is a global corporate cash cow requiring a rock-solid model, but that doesn’t mean it’s the same one since the conception of the company.

With the many decades in operation, you can be sure that a McDonald’s BMC would not look the same at the beginning as it does today. What originally started as a single burger joint on a street corner, now faces the challenges of global food service. Each time a new challenge or opportunity presented itself, the McDonald’s business model was forced to pivot by observing the environment, developing an appropriate plan of action, and monitoring the progress accordingly.

Over the years the world has grown to experience many iterations of the McDonald’s brand, whether it be an icon of American cuisine or an example of adaptation to dietary health. Flexible and ambitious, McDonald’s always made sure the business model matched the desired outcomes.

Business Model Canvas Example McDonalds

Uber is a ride-hailing service that has caused massive disruption for conventional taxi services. By using digital technology and a specific standard for cars and drivers offered to customers, many taxi services and individual taxi drivers have found it hard to compete with Uber. In contrast to developed countries, taxi drivers in developing countries have been unable to meet the minimum vehicle standards to qualify as Uber drivers, competing with them virtually out of the market. On the contrary, it has also attracted a new segment of people looking to use Uber as a part-time job to earn extra money.

By looking at Uber using the BMC Example we can see that its key partners include customers, drivers, payment processors, mapping data providers, and local authorities in the country it operates. Its key activities include developing its digital platform and algorithms, driver onboarding, marketing to balance demand and supply, and supporting customers using the service. The key resources of Uber are its digital platform, pricing, and routing algorithms. Uber relies on a peer-to-peer (P2P) circular economy. Where customers and drivers continue to contribute to the Uber revenue in almost a loop. And since Uber is easier to use compared to conventional taxi services, both customers and drivers tend to often use it as a routine. For example, many drivers have completely switched to Uber from conventional taxi services and new drivers entering the market cannot imagine providing services without the model Uber provides. Similarly, customers can get used to the service in a way that the Uber service itself becomes a part of their daily routine.

The value proposition of Uber is the provision of an on-demand taxi service for customers, whenever and wherever they need it. Uber fills the gap for the availability of an instant taxi service, without the need to necessarily ensure pre-booking or find a taxi manually. This offers user convenience, with various value benefits for both the customer and drivers, including the option to avail a cash-free taxi service by customers, earning opportunities for drivers and the supply of passengers and drivers through its ever-increasing base of users.

Uber reaches its customers and even attracts new drivers through its marketing and makes it easier for people to use its services through its app. Making it easy for the customers and drivers to communicate. Uber provides the utility of not just an on-demand service but also uses its algorithms to match supply and demand, find the shortest routes for customers, and to allocate the closest driver. However, since Uber is primarily connecting customers and drivers, it also shifts much of its costs to the former, since it does not require owning and maintaining a large fleet of cars. It can also adjust its revenue based on the market it’s operating in, and adjust prices to match not only demand and supply but the purchasing power and market rates of the country or area it operates in.

Business Model Canvas Example - Uber

When Amazon started in 1994, terms like e-commerce or online shopping were virtually unheard of. In fact, Amazon can be easily credited with being one of the first e-commerce platforms in the world. However, its customer-led approach, with the convenience Amazon offered soon turned it into a famous retailer, which now has various other services attached to its name including an online video streaming platform called Amazon Prime, a cloud storage service (Amazon Drive), Kindle tablets, Fire TV, etc. However, to keep things simple, let’s look at Amazon’s BMC Example in the context of its retail store.

Amazon provides users with a range of services from its network of sellers. These sellers are rated by customers according to their experience and sellers that fail to adhere to Amazon’s standards are removed from the platform. For example, during the start of the COVID-19 pandemic, many people began hoarding hand sanitizers and selling them at inflated prices online. Amazon was quick to act to remove such vendors.

The approach that Amazon has is based on not just connecting buyers and sellers but ‘continually raising the bar of the customer experience’. To ensure this, amazon often takes innovative steps that not only include improving its digital platform but also ensuring a steady supplier base. In 2019, Amazon announced $10,000 and three months worth of their gross salary to employees who quit their jobs and started a delivery service. Anticipating the need to expand its supplier base. Amazon has also been famous for offering competitive employee benefits and creating a corporate culture that encourages innovation and employee loyalty.

Through its colossal warehouses, customer-centric approach, and corporate culture that creates an atmosphere of employees to remain closely connected with the company, Amazon’s revenue stream simply does not rely on its customer experience, workforce, or supplier base but on how it’s able to create an environment where stakeholders, including customers and employees feel a sense of loyalty towards the company.

Business Model Canvas Example Amazon

Over the years, AirBnb has been among companies that have leveraged their platform to transform conventional modes of doing business. Using its rating-based digital platform, AirBnb enables people looking to rent accommodation and hosts to be able to connect and become a part of its revenue stream with a few simple taps or clicks.

The platform has not only helped people who have conventionally been renting out their property but also enabled individuals with extra space to consider becoming hosts to earn extra money by renting out space for a short period of time. Similarly, the customers benefit from avoiding hefty rates of hotels and expensive accommodation options.

Like Uber, AirBnb has also been a disruptive force in the market it has operated. It uses its digital infrastructure to connect travelers and hosts. While offering the value proposition of making money by utilizing underutilized space to hosts and offering low-cost accommodation for people looking to save money. This model has enabled the company to surpass large hotel chains and make a major impact in the industry for rent and accommodation. In 2020 AirBnb was valued at $75 billion, surpassing giants like Hyatt Hotels valued at $2.07 billion and Marriott Hotels International valued at $10.57 billion.

Business Model Canvas Example - AirBnb

From its launch in 1997 to 2006 in the United States, Netflix had a per-rental model per DVD. However, in 2007 it launched a subscription-based model that turned out to be more successful. Today, Netflix is available for streaming in over 190 countries, each with its own catalog of Movies and TV shows.

According to Netflix’s Business Model Canvas Example, its value proposition is the provision of on-demand entertainment regardless of where you are. Its subscription models provide access to one or more screens, with the utility to watch Netflix via mobile, tablet, laptop, gaming consoles, etc. Its packages include an economical package with an SD (480P) resolution limited to a single device to more exclusive packages offering Full HD (1080p) Ultra HD (4K) and HDR (2160p) resolutions.

Needless to say, the market segment of Netflix is quite close to universal. Outmaneuvering cable operators and conventional TV channels with exclusive on-demand content. While Netflix’s partners have included broadcasters and production companies, it has recently been focusing on original content. Through Netflix’s subscription-based model, there is very little need (if any) for customer interaction, unless a user is reporting a bug. The Netflix model focuses on self-service with an ‘all you can eat’ style subscription model, with algorithms constantly suggesting content to users to keep them engaged based on their viewing preferences.

Neflix Business Model Canvas Example

Ikea’s value proposition is to provide affordable furniture that is sturdy, aesthetic, and functional enough to cater to customer needs. In doing so Ikea claims to create a better everyday life for people who use its products. The Business Model Canvas Example of Ikea includes its vendors, suppliers, franchisees, and logistics partners making it possible to reach out to customers globally.

Unlike companies like Amazon, e-commerce is only part of Ikea’s operations, as it has a robust physical presence in more than 50 countries. Over the years Ikea has undergone continuous product development with new furniture designs and a range of products being released on a consistent basis. This has helped the company to cater to the needs of different customer segments including families, businesses, and people who need something that is easy to use, assemble, and disassemble.

Ikea Business Model Canvas Example

How to Utilize a Business Model Canvas for Your Success

Whether it be a brand-new business endeavor or a product launch at a long-standing company, it’s critical that the business model is kept at the core of every decision. A Free Business Model Canvas Template is a tool to easily keep the model insight and offers an easy method to open the dialogue when that model may need to pivot.

The whole purpose of the BMC is to allow for a simple presentation of information, reducing complications in understanding just what is required in each new iteration of a business model. At a glance, anyone invested in the outcome of the model should be able to understand the who, what, when, where, and why of the model, or bring it to everyone’s attention if they don’t.

Most importantly, the BMC is a tool to help drive success. If there are issues in your business model that need to be addressed, a BMC makes it easier to visualize where the gaps are, and how they may be filled. Keep in mind that pivoting is crucial to the success and survival of a business model and that change, growth, and adaptation are not an abandonment of what matters, but a natural progression to find the best outcomes to the ultimate goal. As Eric Ries, author of Startup Lessons Learned, puts it: ‘pivoting may lead [successful startups] far afield from their original vision, but if you look carefully, you’ll be able to detect common threads that link each iteration.’

Frequently Asked Questions

Business Model Canvas is like a blueprint for your business. It’s a visual tool that helps you plan, understand, and describe how your business works. It breaks down your business into key parts, like who your customers are, what you offer them, and how you make money.

A real-life example would be Airbnb. They use the Business Model Canvas to show how they connect hosts with travelers, offer unique accommodations, and earn money through commissions on bookings.

To determine your value proposition , you need to identify what makes your product or service special. Ask yourself: What problem does it solve for customers? What benefits do they get? Your value proposition should clearly communicate these advantages.

Building and maintaining customer relationships involves providing excellent customer service, staying engaged with customers through various channels (email, social media), seeking feedback, and addressing their needs promptly.

When establishing partnerships, consider what resources or expertise your business lacks and seek partners who can provide them. Think about how these partnerships will benefit both parties and align with your overall business goals.

The Business Model Canvas allows you to see all aspects of your business in one place, making it easier to identify weaknesses and opportunities. By analyzing each component, you can make informed decisions to optimize your model for better results.

Yes, the Business Model Canvas is versatile and can be used for various businesses, from startups to established companies, in different industries. It helps structure and clarify the business model for any venture.

The frequency of updates depends on your business and market dynamics. In rapidly changing industries, you might need more frequent updates, while others may do so annually or when major changes occur.

Use your Business Model Canvas as a visual aid during presentations. Walk stakeholders through each section, explaining how your business operates and creates value. Encourage questions and discussions to ensure clarity and alignment.

If you want to create professional-looking Business Model Presentations, take a look at the following Business Model Canvas templates , ready to edit and easy to use.

1. Free Business Model Canvas Template for PowerPoint

business model canvas design

Build a top-notch company presentation using Free Business Model Canvas Template for PowerPoint. The cool scheme is relaxing to the eyes. The clear layout can provide the audience with quick understanding of the entire report in just one slide.

Use This Template

2. Animated 3D Business Model Canvas Template for PowerPoint

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Created with a 3D Model, this professional PowerPoint Template is ideal for creating videos or animated versions of your Business Model Canvas. Very popular among educators and speakers of the entrepreneurship niche.

3. Business Model Canvas PowerPoint Templates

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This Business Model Canvas PowerPoint Template is created 100% with editable PowerPoint Shapes, allowing the user to customize the content and visual appearance of the presentation. Suitable for educational presentations where you need to navigate each section of the BMC, or for investors presentations where you need to deep dive on each section of your Business Model.

4. Business Model Canvas Template for PowerPoint

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Our most popular Business Model Canvas Template. Ideal for working in groups and iterating with different BMC’s. Its suitable for cooperation editing, and allows very simple compositions. Well suited for developing your MVP and crossing the assumptions that were negated by reality.

5. 3D Perspective Business Model Canvas PowerPoint Template

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This Business Model Canvas Design is inspired in the idea of empty boxes, that entrepreneurs need to fill with their ideas. The design is simple to edit and decorated with a colorful theme. Designed to impress every audience.

6. Lean Canvas PowerPoint Template

business model canvas design

This Lean Canvas template for PowerPoint and Google Slides is perfect for anyone who needs to pitch a business idea to investors, present their idea to stakeholders or company leadership. This template is 100% editable, allowing the user to customize the content and visual appearance.

7. Product Management Canvas PowerPoint Template

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The Product Management Canvas PowerPoint Template is a strategic planning and modeling presentation. This is a single-slide template showing various aspects of product planning and successful management. The purpose of this canvas is to consider all aspects of the product.

8. Editable Business Model Canvas PowerPoint Template

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Editable Business Model Canvas PowerPoint Template is a professional presentation representing the Business Model Canvas in “board” format. All the presentation design is completely editable and the user can move, or add, post-its like text boxes to work with the canvas.

9. Simple Business Model Canvas Template for PowerPoint

business model canvas design

If you are looking to create an aesthetic Business Model Canvas Template, the Simple Business Model Canvas Template for PowerPoint will allow you to give your presentation the style you need. You will be able to add sticky notes with information for each of the sections of your Business Model.

10. Business Model Canvas Template with Widget Design

business model canvas design

100% editable Business Model Canvas template for Google Slides and PowerPoint presentations, with a widget design and look and feel.

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Acquisition, Business Model Canvas, Channels, Cost Structure, Customer Development, Customer Relationship, Customer Segments, Key Activities, Key Partners, Key Resources, Lean Startup, Management, Minimum Viable Product, MVP, Prototyping, Revenue Streams, Startup, Steve Blank, Strategy, Value Proposition Filed under Business

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2 Responses to “What is a Business Model Canvas? Quick Guide + Examples”

If your business is a non-for-profit , how can you adapt your MVP? You are not selling anything as such, so how do you test if your product (MVP) will be purchased?

Hi Elena If there is a “business model”, there is always a business. So, you are selling something. Even non-for-profit sell. They just sell at “cost” or “subsidized”, but there are customers which pay at the end. Otherwise, rather non-for-profit, it is philanthropy and there is no “business” around. Hope this helps. Regards GV.

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business model canvas design

The 9-Step Business Model Canvas Explained (2023 Update)

business model canvas design

Written by Raquel Alberdi

Business | entrepreneurship, 16 comments(s).

Business Model Canvas

Blog » The 9-Step Business Model Canvas Explained (2023 Update)

business model canvas design

“A major mistake made by many start-ups around the world is focusing on the technology, the software, the product, and the design, but neglecting to ever figure out the business . And by “business” we simply mean how the company makes money by acquiring and serving its customers”.

-Reid Hoffman

After meeting with hundreds of entrepreneurs and business owners over the years I believe the LinkedIn co-founder and Blitzscaling author Reid Hoffman’s got it spot on.

People tend to focus on specific parts of their business, such as which software packages are being used, which is the cheapest supplier, how to optimize internal processes…?

They get so bogged down in the details of the day-to-day running that they lose the overall vision of their business.

Without this vision they are unable to scale, they make marginal profits, miss opportunities, struggle to innovate, and end up running “just another” business.

Another handy metaphor in understanding this common mistake is the soldier in the trenches .

Every meter of ground gained comes at a heavy cost, mistakes are made, and progress is hard-fought and slow…a day-to-day experience for 99% of entrepreneurs and businessmen.

But when you do have that 360 vision you see the entire battlefield. Decisions are much clearer, fewer mistakes are made, and progress is fast and methodical.

Fortunately, a business model framework exists that gives you both vision and clarity .

The Business Model Canvas provides entrepreneurs, business owners, and strategists with a tool to analyze, structure, and evolve a business while always keeping the bigger picture front of mind.

So let’s take a closer look at how it works.

Table of Content

What is the Business Model Canvas?

Created by Swiss entrepreneur and Strategyzer co-founder, Alexander Osterwalder, the Business Model Canvas is a visual representation of the 9 key building blocks that form the foundations of every successful business. It’s a blueprint to help entrepreneurs invent, design, and build models with a more systematic approach.

Why is it so popular within the business community?

Its simplicity. The business model canvas allows us to carry out a high-level analysis without drilling down and getting lost in the details. You just draw out the 9 building blocks on a blank canvas, fill them in as each concept relates to your business, and hang it somewhere everybody can see.

It’s a visual overview of your entire business on a single canvas.

While the Business Model Canvas is an extremely fluid concept and hyper-specific to individual companies, each canvas is still broken down into these 9 key building blocks:

Customer Segments

Value propositions, customer relationships, revenue streams, key resources, key activities, key partners.

When laid out on the canvas the model will look something like this:

 Scheme of business model in which 9 important fields are developed for its execution.

While you’ve probably come across each of the 9 building blocks before, the attractiveness of the Business Model Canvas is that it confines them to a single page , not a traditional 42-page document.

This makes it a lot easier to digest, as well as assess existing business models or map out new ideas.

How do I fill out the Business Model Canvas?

To start your Business Model Canvas you will need to breakdown and analyze each of the 9 building blocks.

A good way to approach this is to gather the heads from marketing, sales, operations, finance, and manufacturing (if product-based) and pencil-in a morning where you can all meet together.

Then, after drawing a mock canvas onto a whiteboard, proceed to dissect and discuss each of the 9 building blocks as they relate to your business. You can use sticky notes to better organize your thoughts around the canvas.

If you are an entrepreneur or new business owner working alone and don’t have a team to bounce your ideas off, not to worry. You can still carry out your analysis before sharing it with a like-minded entrepreneurial community or forum, like those found on ThePowerMBA , to get useful, insightful feedback.

Whichever way you decide to approach it, I recommend you complete each block in the following order:

  • Cost structure

For continuity, I’m going to use the fashion retail giant Zara when analyzing each of the 9 key building blocks.

If you’d like to skip to another case study similar to your own business, navigate to the table of contents at the top of the page and select one of the other business model canvas examples.

Customer segment business model canvas for Zara company

The first block of the Business Canvas Model is about understanding who is the most important customer(s) you’re delivering value to. Or, in other words, who are they? What do they do? And why would they buy your product or service?

Not a single company exists without its clients, making customer segments the best block to start with while drawing out your business model canvas.

A great exercise to define your customer segments is to brainstorm and create your company’s buyer persona (s) .

Buyer personas are fictional depictions of an ideal or hypothetical client. Typically when brainstorming a buyer persona you’d want to define certain characteristics (age, demographic, gender, income, industry, pain points, goals, etc.)

However, remember at this stage we want a snapshot of our customer segment. There’s no need to jump into great detail just yet.

In the case of Zara, there are three distinct customer segments to whom they offer different products.

The products created for each of these customer segments (clothing, shoes, and accessories) are not trans-consumable. That is to say, a woman’s dress is highly unlikely to be worn by a 7-year-old child.

Once we know exactly who it is we are targeting, it’s time to look at what we as a company have to offer.

Zara Customer Segments business model canvas template showing the development of the 9 fields

The second phase is about figuring out your company’s value propositions , and importantly, your UVP (unique value proposition). The “what” that makes customers turn to you, over your competitors? Which of their problems are you best at solving?

Each value proposition consists of a bundle of products or services that fulfill the needs of a buyer persona from your customer segment. It’s the intersection between what your company offers, and the reason or impulse customers have for purchasing.

Some popular questions to ask while determining your UVP are:

  • Which specific customer pain point are you trying to solve?
  • What job are you helping customers get done?
  • How does your UVP eliminate customer pain points?
  • What products or services do you provide that answer this specific pain point?

So let’s try and apply this to Zara. Why do people choose to purchase from them, over their competitors?

Zara’s principal value propositions are fairly clear. They offer various ranges of stylish men’s, women’s, and children’s clothing and accessories at an affordable price.

But there’s more to it than that.

If we dive a little deeper we see Zara’s value propositions are more complex, which are behind the success of the brand:

Fast fashion

Zara adds new clothes and designs to its collections every 2-3 weeks, both in its stores and online. It keeps the brand updated, fresh, and modern while maintaining its all-important medium price point

Great eCommerce experience

Once you enter Zara’s online store you’re presented with a clean, easy-to-navigate, and high-end feel. The customer segments are visible on the left navigation bar with a search tab to further aid customers with their online experience.

Zara's Canvas business model where you can see the innovative presentation of its image

Localized stores

You can find a store in nearly all major retail locations (shopping malls, retail outlets, airports, etc.) meaning accessibility is not an issue for the majority of consumers.

Flagship stores

Zara demonstrates its aesthetic evolution to customers through its flagship stores. The recent opening of their Hudson Yards , New York City flagship is a great example of this. Customers shop around its vivid, minimalist layout offering them an experience aligned with the brand’s deeper, eco-friendly values.

Zara's Canvas business model where you can see the innovative presentation of the image of its stores

Zara Hudson Yards, New York

Business Model Canvas Template Zara - Value Propositions

The next step is to ask yourself how you are reaching your customers, and through which channels ?

This includes both the channels that customers want to communicate with you as well as how they’ll receive your products or services.

Is it going to be a physical channel? (store, field sales representatives, etc.) Or is it a digital channel? (mobile, web, cloud, etc.).

Zara has 3 primary channels in which they communicate and deliver products to its customers:

  • Direct sales through their stores
  • Online (both app and website)
  • Social media

Customers can go to a traditional “bricks and mortar” store to browse, model, and purchase different items of clothing at one of their retail stores.

Alternatively, they can shop online or through their mobile application and have the product delivered straight to their door or nearest store. The choice is completely up to them!

So that covers Zara’s commercial channels, but what about how they communicate with customers?

While they do communicate through their mobile app, their predominant channel is social media.

What’s more, they’re really, really good at it.

For example, did you know that Zara invests less than 0.3% of its sales revenue into advertising?

This is only possible due to an A-rated social media presence . Customer queries are not only dealt with quickly, but recommended re-works are sent back to HQ, forwarded onto in-house designers who then apply the feedback to future collections.

This customer-first approach through fluid communication channels has saved them thousands of dollars in marketing, strengthened their brand, and created a loyal customer base.

You should only step away from this building block once you’ve decided how each of your customer segments want to be reached.

Zara Channels business model canvas template where its components are developed

Once you have acquired customers, you will need to think about how you can build , nurture, and grow those relationships.

Now, this can be automated and transactional like large eCommerce brands Amazon or Alibaba. Or, it could be at the complete opposite end of the scale and require a more personal relationship you’d typically have with a bank or your local bike shop.

Zara’s relationship with its customers is threefold, and lies somewhere in the middle of transactional and personal:

  • Salesperson at store
  • Brand through social media
  • Sentimental attachment to a product

Yes, you have the initial transactional touchpoint at the store or online, something relatively impersonal and for many the only interaction they’ll have with the brand.

However, customers (especially in the fashion industry) are encouraged to continue to interact with a brand through social media platforms.

As we mentioned before when discussing channels, Zara has a very effective communication system in place. Not only can people instantly get in touch with the brand, but also engage with new posts, images, and collections uploaded to social media.

This personal approach to customer relationship building can, in some cases, lead to the natural growth of brand ambassadors and communities .

An attachment can also develop between customers and particular garments or accessories from one of their collections. The sentimental attachment to these products also creates another potential form of brand loyalty.

The relations with Zara's clients to give a Business Model Canvas where the 9 points to be developed are seen

Now that you’ve described how you are going to create real value for your customers, it’s time to look at how you plan to capture that value.

What are your revenue streams? Is it going to be a transactional, direct sales strategy ? Are you going to consider a freemium mode l, where you give a portion of your product or service away for free with the idea of converting later on down the line?

If you’re a SaaS company such as SalesForce or Strava , then it’s likely that a licensing or subscription revenue model will be more appropriate.

At Zara, it’s extremely simple. They make their money by selling clothes and accessories either at a store or online.

Zara business model canvas template for the development of Revenue streams within the 9 points to work

As you can see, we’ve filled in the entire right-hand side of our business model canvas. We touched upon:

Customer segments

  • Value propositions
  • Revenue streams
  • Distribution channels

Now it’s time to move over to the left side of the business canvas model and look at what we need, internally , to deliver our value propositions.

Key resources of the Zara Business Model Canvas

To start with, let’s take a look at key resources.

The key resources are all things you need to have, or the assets required to create that value for customers.

This could be anything from intellectual property (patents, trademarks, copyrights, etc.) to physical holdings (factories, offices, delivery vans, etc.) right down to finances (the initial cash flow perhaps needed to start your brand).

Another key resource every company needs to consider is its human capital . Are you going to need highly specialized software engineers? Or field-based sales teams?

They are relatively capital-heavy resources that need to be factored into your business model.

In the case of Zara, they are going to need a number of key resources if they hope to deliver their propositions:

  • Stock management
  • A large, interconnected network of physical stores
  • A strong brand
  • Logistics and supply chain infrastructure

Stock is vital for both online and offline customers.

If they are unable to supply their range of products and meet customer demands, satisfaction levels fall and they have a serious problem on their hands.

A large distribution network of brick and mortar stores combined with a strong brand name help mitigate these factors, as well as reinforce any ongoing marketing activities and communication efforts.

Finally, an efficient logistics process within Zara is critical, especially when you consider the complexities involved with such a large-scale operation.

They will require the necessary technology to analyze data on inventory, storage, materials, production, and packaging, with the staff to execute each of these stages and manage the delivery of the final products.

Zara business model canvas template where the Key Resources are developed

The next step is to define the key activities – the areas you need to be good at to create value for your customers.

To mix it up a little let’s take a look at a slightly different business in Uber .

Their key activities can be broken down into:

  • Web and mobile app development
  • Driver recruitment
  • Marketing: customer acquisition
  • Customer service activities : drivers’ ratings, incidents, etc.

They need a fast, clean UX for their customers using the app, drivers to carry out their service, and the ability to both market the product and deal with any customer queries.

Zara’s key activities will differ to those of Uber. Some of the things they need to consider would be:

  • Manufacturing
  • Retail process (point of sale and 3rd party management)
  • Distribution channel / logistics

Design is a key activity as Zara’s value proposition is to provide stylish garments at an affordable price. Their collections need to be constantly updated to follow the latest fashion trends at the time.

To produce their collections Zara will also require manufacturing capabilities. Now Zara doesn’t own their own factories (we will get to that in the Key Partners section) but they still need to be involved in the garment manufacturing process.

Everything from fabric selection to pattern making, to detailing and dyeing affects the outcome of the final product which of course they have to then go on and sell.

The effective management of the retail and distribution channels (online, offline, shipping, and communication with providers) is also key. A breakdown in either of these activities, such as a poor relationship with an important provider will have serious consequences for the business.

Zara business model canvas template showing the key activities for its development

Most modern business models now require brands to build out and work with various key partners to fully leverage their business model.

This includes partnerships such as joint ventures and non-equity strategic alliances as well as typical relationships with buyers, suppliers, and producers.

A great example of a strategic partnership would be between ThePowerMBA and Forbes . In exchange for exposure of our brand to the magazine’s global audience, we provide expertise and content on high-level business education programs.

As we touched upon when discussing key activities , Zara requires strategic partnerships with many different providers if they are to design and produce their collections.

Another key partner is their major holding company, Inditex .

Inditex has several subsidiaries including Massimo Dutti , Pull & Bear , and Oysho . Being a subsidiary of Inditex means they share a consolidated balance sheet, stakeholders, management and control, and various legal responsibilities.

While as a subsidiary Zara is afforded certain freedoms when it comes to design, delivery, and the general running of the company, the overall strategy will need to be aligned with Inditex and its other subsidiaries.

Zara Key Partners business model canvas template where the eighth point is developed

The final step of the Business Model Canvas is to ask yourself, how much is it going to cost to run this model?

This includes some of the more obvious needs such as manufacturing costs, physical space, rent, payroll, but also areas such as marketing activities.

If you are unsure of exactly what to include in your cost structure take a look at a Profit and Loss statement ( P&L ) from a competitor or company in a similar industry to yours. You’ll find many items overlap such as research and development ( R&D ), cost of goods sold, admin expenses, operating costs, etc.

Once that’s done you should prioritize your key activities and resources and find out if they are fixed or variable costs .

As Zara is such a large, corporate business they are going to have both fixed costs (rent, payroll, point of sales personnel) and variables, such as costs associated with the fluctuating sale of goods, purchase of materials and, manufacturing costs.

Once you’ve completed these 9 steps, your Business Canvas Model should look something like this:

Business Model Canvas Examples

Hopefully, you were able to get a good feel for the effectiveness of the business model canvas with our run-through of Zara.

However, if you found it difficult to follow due to the stark difference between your industries, I’m going to quickly go through 3 more companies to demonstrate the tool’s flexibility:

  • Netflix (Media service/production)
  • Vintae (Vineyard)

Even if these business model canvas examples don’t align exactly with your industry, I honestly believe that studying different models gives you a competitive advantage in your professional career regardless.

If you’re currently employed by a company, you’ll better understand how your specific role helps the company achieve some of its “long-term” goals.

Alternatively, if you are a business owner yourself (or perhaps thinking of starting your own business) you’ll have a better understanding of your business and where potential opportunities lay.

I’m sure you’re familiar with our next business model canvas example candidate, Netflix .

The global media company offers an online streaming service of various movies, documentaries, and TV programs produced in-house or licensed 3rd-party content. Their success sparked a revolution in the online media world with the likes of Amazon, Apple, Disney, HBO, and Hulu all rushing to launch their own online video streaming platforms.

Netflix started life as an online DVD rental company, basically a web version of the more popular (at least at that time) “bricks and mortar” Blockbuster.

Co-founder Reed Hastings predicted as far back as 1999 that the future of media was in online streaming, saying “postage rates were going to keep going up and the internet was going to get twice as fast at half the price every 18 months.”

It wouldn’t be until 2007 that Hasting’s prediction would become true when Netflix, as we now know it, was born.

So let’s take a current look at their business model canvas:

Netflix business model in which the 9 topics are taken into consideration

As you probably know, there are very few people out there who haven’t subscribed, watched, or at least heard of Netflix. There is content for everybody: wildlife documentaries, sci-fi movies, rom coms, action-thrillers, you name it – it’s there.

That’s why their customer segment can be classified as a “ mass market ” as the base is just so diverse.

All people require is a computer, TV, internet, and/or smartphone and they’re good to go. For most developed markets, that covers just about everybody.

Value Proposition

Whether on the train to work, sitting in the car (if you’re not driving!), or relaxing at home in front of the TV, you can consume their online, on-demand video streaming service.

They also have a huge library of content for consumers to choose from, ensuring that people keep coming back, as well as increasing their mass-market appeal.

They also produce high-quality, original content to differentiate themselves from their competitors.

Most people access Netflix either through their website or mobile/TV App . Another popular channel that you may have picked up on is their affiliate partners .

You’ve perhaps signed up for a mobile, TV, and internet package where the provider offers Netflix as an extra to sweeten the deal, so to speak.

That would be an example of an affiliate partnership between Netflix and mobile service providers.

I doubt many consumers have had direct contact with Netflix unless it’s to resolve a subscription issue or general query. It’s very much a self-automated service – you download the app, select the program you wish to watch, and hit play.

Very simple, very effective.

Again, this doesn’t need much embellishment. Netflix generates money from the different tiers and packages put together in their subscription services.

This varies depending on the region to account for local markets, but on the whole, it’s sold at a low price point.

Originally, Netflix’s Key Resources would have been their unrivaled DVD collection combined with a cost-effective mail-order system.

Nowadays it’s undoubtedly the rights to stream online video content. Netflix has brokered deals with some of the biggest production studios worldwide.

Combined with their huge library of in-house productions , it’s more than enough to encourage customers to renew their subscriptions.

To help sustain interest in their product, Netflix understands they need to serve-up relevant content for each sub-sector of their mass audience. Therefore their machine learning algorithm selects content for consumers based on streaming habits (what they watched, at what time, etc,.) to personalize the customer experience.

This explains why over 80% of all content streamed on Netflix was cherry-picked by this algorithm, making it a Key Resource for their business model.

Also, Netflix accounts for a whopping 12.6% of global bandwidth usage . The literal capacity to stream their services must be met meaning bandwidth must also be included here.

Content procurement is arguably their biggest Key Activity. They need to find people to produce and deliver their original content, including actors, studios, writers, etc. as well as secure the licensing and streaming rights from 3rd party producers such as Sony, Warner Bros, and Disney.

Finally, they need a fast, easy-to-use application to host their online streaming service. This needs to be available for both TV and mobile devices if they are to deliver their “on-demand” value proposition.

K ey Partners

Seeing as Netflix’s entire business model is largely based around streaming 3rd party content, key partnerships need to be built with production studios . No content, no Netflix!

Also, as we touched upon earlier Netflix is one of the largest consumers of bandwidth worldwide. If the speed and delivery of their streaming service are to be continued then deals will also need to be made with internet service providers (ISPs).

Netflix’s biggest expenditures come from both their in-house content procurement and 3rd party licensing agreements . The high-quality standard of video streamed on Netflix is only possible due to the speed and performance of its online platform and application , which has additional costs of staff, software, etc.

To show you just how flexible the business model canvas can be, I wanted to throw in a slightly leftfield example. Vintae is a Spanish wine producer who, after a detailed analysis of the business model canvas, was able to innovate and disrupt one of the world’s most competitive industries.

As some of you may know, the wine industry is extremely competitive. It’s also steeped in history and tradition , making it very challenging for newcomers to grab market share, let alone think about year-on-year growth and revenue.

However, CEO “Richi” Arambarri looked at the traditional “ bodega ” business model and saw a chink in its armor.

A “small” innovation in the business canvas model helped them to become one of the region’s most important winery groups, with over 10 installations and a presence across all regional denominations (Rioja, Priorat, Rias Baixas, etc.) with year on year growth of 30% – practically unheard of in such a competitive industry.

So how did Vintae analyze the business model canvas to find a niche in their market?

To answer that question, we must first look at the traditional winery business model .

Traditional Winery Business Model with its 9 developed points

As you can see, the wine industry has historically been patrimonial. Vineyards and estates are passed down through generations with the winery responsible for all phases of production, clarification, and distribution.

The traditional winery business canvas model suggests you must be the owner of the winery/vineyard where the wine is “manufactured”, meaning physical assets are a key resource of the business model.

So, if you wanted to start producing a Rioja, for example, you’d have to set up your vineyard in the region.

This is monumentally expensive as you need to:

  • Purchase the land
  • Plant a vineyard
  • Absorb set-up and installation costs
  • Deal with maintenance costs

It’s here where Vintae saw their opportunity.

What if we move vineyard ownership across the business model canvas from key resources to key partners ?

By leasing the equipment and space of large wineries (of which there was plenty), they could still produce their wine but reduce the cost and exposure associated with land purchase, crushing equipment, huge storage tanks, vineyard maintenance, and their bottling line.

This enabled them to focus on their sales, marketing, and distribution channels to create a better brand experience for their customers.

Also, it afforded them more flexibility when creating new wines as they were no longer confined to the limitations of grapes grown on their vineyard.

The lightness of this new business model eliminates maintenance overheads, channels energy into personalizing the customer experience, and allows for unprecedented levels of growth in one of the world’s most competitive industries.

Vinate business model

Business Model Canvas Software

Although I did mention starting with a large whiteboard, sticky notes, and a pack of colorful sharpies there are several options in which you can digitize the business canvas model production process.

While I still believe the aforementioned process is extremely valuable (it gets your entire team’s input in a single hour-long session) you may decide it more viable for each member of management to pool their ideas digitally before sharing with the rest of the group.

If that’s the case, then take a look at some of the following software tools for creating your business model canvas.

Strategyzer

Created by the founders of the business model canvas Alex Osterwalder and Yves Pigneur , Strategyzer offers a range of business model canvas templates for you to get started with.

If you opt for the paid model (there is a 30-day free trial period) they offer a series of various classes that teach you how to build and test different value propositions and business models.

A real-time built-in cost estimator analyzes the financial viability of some of your business ideas, identifying alternative areas you may wish to explore with your model.

All-in-all, it’s a great resource to play around with and test some of your business ideas, with the option to dive into further detail if you see fit.

Canvanizer is a free, easy-to-use web tool that allows you to share links between team members who are brainstorming ideas for a business model canvas, but working remotely.

Like Strategyzer, there are several business model canvas templates provided to help you get started with your analysis. The strength of this platform is its accessibility. Much like a Google Doc., several people can brainstorm on the same canvas simultaneously with changes being synchronized automatically.

Business Model Canvas Tool

A ThePowerMBA alumni, impressed by the simplicity and effectiveness of the tool, went ahead and created the free application Business Model Canvas Tool .

It’s an incredibly intuitive, and easy-to-use tool that allows you to create templates simply by clicking the + button in each building block.

Each business model canvas created can be downloaded and shared as a pdf. with the rest of the team.

Would You Like to Learn More about Business Models?

If, after going through our 9-step guide on how to use the Business Model Canvas you’d like to learn more about different business model analysis tools , take a look at our alternative MBA business program .

As you’ll see, the course gives students a 360-degree view of business and management practices – such as engines of growth, segmentation and targeting, and value propositions.

I highly recommend you go check it out.

Regardless, I’d love to hear what you thought about this guide. Was it helpful? Would you like to see additional business cases analyzed from your industry?

Let us know in the comments below.

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The reasons why data fabric is gaining ground in the business world

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16 Comments

Ayeah Goodlove

Perfect thought

kourosh abdollahzadeh

I am a DBA student. I have used your site a lot. Thank you for the information

KJ Hwang

Well defined steps, Thanks for good contents.

Reza Ebadi

Dear Sir many thanks for you guideline. it was very effective for me. Thanks a Million

Debashis Rout

Well explained with practical business case

Allen

Wow, this article was incredibly helpful! I’ve heard about the Business Model Canvas before, but I wasn’t sure exactly how it worked or how to use it for my own business.

NIMAKO JAMES

I need a sample of business model canvas for a beauty palour

Opoku Samuel

you’ve done a great job. keep it up

Claudia Roca

This is a very insightful content with a step-by-step practical approach of how to write a BMC and what exactly it should contain.

My team and I literally used your guide to write a BMC for a project we were working on, and in just about an hour we were done.

Thank you so much for this content, it was really helpful.

Franco

Thank you very much Collins and we are glad you are using this tool.

Jude

Insightful! Gave me the clarity I needed for my upcoming business. Thank you so much.

Praveen

Thank you very much for the business model example of ZARA. It was very very informative

Efi

This is a great explanation, the best i’ve seen. Thanks

Thank you very much for reading and sharing your comments

Tatyasaheb Phadtare

Really great tool for business and whom want to enter,. Thanks

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  • Demystifying business model canvas – Karmen Skaro - […] Additional information on business model canvas find here and here. […]
  • Saas Business Model (2023) - […] in this material you will learn all about SaaS as a business model. It’s an interesting material that will…
  • What is the main objective of inferential statistics? (2023) - […] offers a lot of information about different phenomena or behaviors that are relevant for making business decisions. The results…
  • How to Prepare a Canvas Business Model - The Passionate Seeker - […] you have filled out each building block of the Business Model Canvas, you will have a comprehensive overview of…
  • The Business Model Canvas: A Comprehensive Guide for SMEs and Start-ups – AdvantEdge - […] Further insights and practical applications of the BMC can be found here: The Power MBA’s Guide. […]
  • Top 5 Tips For Business Success by Freeduhm Team | Milyin - […] that market and have a chance to make money and become profitable. Additionally, you can use a business model…

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How to Create a Business Model Canvas (With Template)

May 19, 2021 - 10 min read

Yuvika Iyer

Do you want to create a simple business plan? Something comprehensive, flexible, and easy to scribble on a napkin? You can do that with a business model canvas.

Every business has ever-changing, diverse interests. Illustrating all of this on a single sheet of paper may sound challenging — but by using a business model canvas template, your team can focus on the key elements of your business to ensure nothing slips through the cracks.

Business model canvas explained

"Lengthy business plans often increase the risk of failure," wrote Alex Osterwalder in his 2008 book “Business Model Generation.”

The business model canvas offers a way to avoid this, providing a simplified version of a business plan. A business model canvas is a simple, visual framework that helps teams outline the most fundamental elements of a business.

As a handy business tool, teams can use a business model canvas to map the nine core areas of a business, such as customer needs, value proposition, and platforms for customer acquisition.

This article will explain the business model canvas, its benefits, and how it can help your team develop a successful high-level business strategy and actionable roadmap .

How can a business model canvas help your business?

Many teams are so overwhelmed with operational issues that they don’t have time to focus on the core business strategy .

Utilizing the business model canvas helps create a unified framework that depicts this strategy alongside an action plan that teams can follow.

But how do you know if you need a business model canvas? If you are starting a business or even toying with an idea, a BMC can create a powerful visual representation of your concept. A business model canvas can also be a handy reference for your team as they move towards successful business outcomes. Here are five more ways in which a business model canvas can help your company.

It’s simple and easy to follow

Whether you have a business idea or are managing a large enterprise, having an easy-to-follow business plan can be immensely helpful. As a precise one-page document, teams can modify specific business model canvas elements as they go along without completely redoing a 50- or 100-page document.

Focused on being actionable 

Every business plan needs to be actionable. Using a business model canvas helps you accurately define your organization’s core value proposition and keep it aligned to your business strategy.

Your focus could be to achieve profitability in the first year or gain a large market share. Stay competitive by defining actionable steps for your team within the business model canvas.

Flexible and scalable as the business evolves 

No business stays the same forever but evolves as it interacts with diverse market dynamics, competitors, product innovations, and changing consumer needs.

To take your idea to market, you need a tool that connects the dots between what your customers want, your business's unique offering, and the desired profitability streams.

By creating a business model canvas template, you instantly get an edge over other market players engrossed in lengthy business plan documents.

How to Create a Business Model Canvas (With Template) 2

Puts the customer first

Ignoring customers sets businesses up for failure . Companies flounder if they direct their energies solely towards making a great product or service. With a business model canvas template, your focus stays on the ultimate end-users of your product. 

Having a business blueprint will force team members to think about what customers want, the primary issues they need help with, and how your product or service can do that. 

Helps get team and executive buy-in

23% of businesses fail without the right team on their side. Every company needs team members with a diverse mix of skills, experiences, and talents.

Companies require a solid business blueprint for hiring team members or bringing in investors. Having a business model canvas can help get everyone on board with your organization’s core vision. Potential employees and investors can visualize how the different organizational parts interact and see how they can become an integral part of the company.

Promotes focus on the unique value proposition of your business

19% of companies fail due to being outperformed by their competitors. If there's no difference between your product and one from another firm, why should customers come to your company? Every business needs a clear value proposition that helps them stand out — that's where a business model canvas template comes in.

When you look at the nine core elements of a business model canvas (explained below), you'll quickly notice some factors are controllable to a certain extent, while others are more fractious.

Your company's core value proposition sits right in the middle. It acts as the central pillar around which all other elements exist, defining the fundamental nature of the business.

What goes into each segment?

To fill out a business model canvas, you should know what goes into each of the nine fundamental segments.

Have a business model canvas template ready before you and your team start brainstorming on each of these elements (you'll find one below) and then add the research and data into the relevant sections. 

Customer segments In this fundamental business area, teams identify the core individuals they will help with their product or service. To do this, they create two to three buyer personas — potential customers that a business seeks to serve.

A buyer persona is a simple but detailed description of a prospective business customer. It assists with capturing the customer’s real-life problems and motivations, helping the business deliver what they want.

Value proposition The value proposition is the ultimate value that a customer will get from your product or service. It seeks to answer the question, “Why will a customer buy?” Here are a few popular value propositions for any organization:

  • Customization ability
  • Unique product design
  • Innovation in product or service
  • Exceptional service or product status
  • Affordable pricing and clear pricing model definition

Channels In a business model canvas, channels are the platforms through which a company sells its product or service to end-users. To identify the best channel for your business, look at how you plan to connect with your customers.

A few possible channels can be:

  • A self-owned retail store
  • Direct sales staff
  • Affiliate marketing platforms
  • Google Adsense

A business can either own its channels or partner with other companies that have their own channels.

Customer relationships Customer relationships in a business model canvas define how the company will obtain, retain, and increase new customers. Let's take a look at how customer relationships are built:

  • Identify how to obtain customers and from which platforms (e.g., Google, Facebook ads)
  • Gain clarity on how to retain existing customers using different techniques (e.g., exceptional customer service)
  • Discover how to increase the customer base of the business (e.g., sending text or email notifications to prompt website visits)

Revenue streams Revenue streams help the business owner decide how to generate revenue and achieve their predefined organizational goals . Key decisions with revenue streams include:

  • Choosing from a one-time payment model or monthly subscriptions
  • Keeping a free plus paid model or a wholly paid product or service with a free trial
  • How payment from customers will be received — website payments, PayPal, or in-store

Key resources Key resources in your business model canvas represent the assets that are vital to your company’s operation. Business assets can include anything from the below categories:

  • Physical assets , including machines, buildings, IT hardware, and vehicles
  • Intellectual assets , including patents, copyrights, partnerships, brands, and employee skills
  • Human assets , including talented employees in knowledge industries such as IT, law, and content marketing
  • Financial assets , like cash balances in the bank or lines of credit

Key activities Want to make your business canvas model work? Make sure to list the key activities that will help expand the business's core value proposition. Key activities can come from any of the below categories:

  • Production: How you will deliver your end product to the customers. You may need to order more stock or upgrade materials
  • Platform: For example, the software used to sell your product, which may require upgrades or maintenance
  • Problem-solving: For example, designing innovative solutions for issues that your customers face

Key partners Every business has some non-core activities that should preferably be outsourced. Key partners are the companies or individuals that complete these non-core activities.

Take a company like Facebook, for example — its key activity is to upgrade and maintain its platform. It doesn't create its own ads, so it also needs to strike deals with companies that wish to advertise on its platform. 

Similarly, it doesn’t create its content — the users do. The primary reasons for choosing key partners can be:

  • Achieving economies of scale
  • Mitigating risk and unpredictability in business
  • Acquiring resources and advertisements for its business (e.g., ads for Facebook)

Cost structure Once the key activities are outlined on the business model canvas, it's time to assign cost structures. Be clear and precise with the estimated business costs of the planned activities to ensure you reach your profitability goal.

Business model canvas example and template

How to Create a Business Model Canvas (With Template) 3

  • Customer segments: Facebook's customers can be divided into two distinct categories — advertisers and platform users
  • Value proposition: The primary reasons platform users come to Facebook. Users feel connected to friends and families, while companies get more leads through advertising on the platform
  • Channels: The website where all data is stored
  • Customer relationships: Facebook incentivizes users to stay on the platform through notifications and new features, leading more companies to advertise on it
  • Revenue streams: Facebook earns money through advertising, while companies gain new customers from Facebook ads
  • Key resources: Facebook's key resources are its platforms — Facebook.com, the Messenger application, and Facebook Ads Manager for advertisers
  • Key activities: Maintaining the website and its infrastructure are two of Facebook’s key strategic activities
  • Key partnerships: Facebook's key partners are its users and advertisers
  • Cost structures: Major costs incurred by Facebook include managing the software, backend engineering operations, product development, regular operations, and staff salaries

How to create a business model canvas (with template)

Ready to create your business model canvas? Before you begin, take some time to brainstorm answers to these questions related to the nine core fundamental areas of the canvas. Here's a simple business model canvas template exercise that can help your team get started.

  • Customer segments: Can you identify your potential customers?
  • Channels: Once the product or service is ready, how will customers discover it?
  • Key partnerships: Can any non-core business activities be outsourced?
  • Customer relationships: How will your business generate leads and retain and increase your customer base?
  • Cost structures: Can the business classify its main costs and expenses into fixed and variable? Is there a way to align costs with the core value proposition and planned revenues?
  • Revenue streams: Has the business decided on a profit margin? How will it make money?
  • Key resources: Which core resources are critical for the business to succeed?
  • Value proposition: Why will customers choose your business? Does the company satisfy any particular need with its product or service?
  • Key activities: Are there any activities that help your business deliver its unique value proposition to customers?

Do I need a lean model canvas? 

If your business is still an idea or in its infancy, choosing a lean model canvas makes more sense.

Inspired by the business model canvas, the lean model canvas was created by Ash Maurya . It is a one-page business plan template that distills the lean startup methodology into the original business model canvas. 

Lean model canvas assimilates multiple essential data points to develop a simpler, start-up optimized version of a business model canvas. It adds four more building blocks to the business model canvas, namely:

  • Problem: Identify the problem faced by the customer and focus on solving it
  • Solution: Start with a minimum viable product that helps solve the customer problem effectively
  • Unfair advantage: List the barriers to entry in a specific sector and your company’s competitive advantages
  • Key metrics: Focus on one goal at one time to ensure you’re doing a good job

Lean model canvas drops four elements from the original business model canvas — key partners, key activities, key resources, and customer relationships. 

While the original illustrates a more comprehensive business approach, the lean model canvas has a sharper customer orientation. Many start-ups prefer the lean model canvas to a traditional business plan for building an actionable roadmap.

The lean model canvas is a great fit for younger companies or those working with a tight time frame or budget to market with a more targeted problem resolution approach.

Why you should use Wrike to build a business model canvas 

The business model canvas’ nine building blocks clearly illustrate the core business areas and their interrelationships. Whether you're trying to figure out the model for a company with three employees or 50,000, a business model canvas can be very useful.

Begin by mapping out the most crucial information about your business, then link the blocks to ensure every value proposition is linked to a revenue stream and a specific customer segment.

Using Wrike to build your business model canvas template, you can iterate faster, communicate with ease, and enable organization-wide success . With a centralized hub, your teams can configure custom dashboards easily and produce better quality work using premade templates . Implement what you've learned about the business model canvas by trying out a free two-week trial of Wrike today.

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Yuvika Iyer

Yuvika is a freelance writer who specializes in recruitment and résumé writing.

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These outside organizations have expertise in their specified area, which allows them to manage tasks and processes on behalf of other businesses.  For example, a marketing agency, during their resource planning process, may choose to outsource their payroll and accounting functions in order to focus on the core competencies of their organization.  There are three types of business process outsourcing: offshore, nearshore, and onshore outsourcing.  Offshore outsourcing: The function is managed by an operator or vendor in a different country (often far away and in another time zone) Nearshore outsourcing: The function is managed by an operator or vendor in a neighboring/closeby country Onshore outsourcing: The function is managed by an operator or vendor within the same country — but could be in another state or region  Business functions ideal for outsourcing may include admin, customer service, PR, data entry, HR, content moderation, and more.  Business process outsourcing can improve efficiency and present significant cost savings for companies that may not have the resources to hire a team of in-house customer service specialists or payroll professionals, for example.  In fact, Deloitte research indicates that 59% of companies who outsource say they do so with cost savings as a primary motivator. What is business process as service (BPaaS)? Business process as a service enables BPO by managing specific functions through cloud-based delivery systems. The global BPaaS market is extensive and expected to reach a value of $77.8 billion by 2023. Some well-known names in BPaaS include Accenture and IBM.  BPaaS can help manage:  Finance and accounting  IT services  eCommerce Customer service processes BPaaS leverages the capabilities of infrastructure as a service (IaaS), software as a service (SaaS), and platform as a service (PaaS) solutions in order to help companies manage and address their business objectives.  Business process as a service also relies on automation in many cases, reducing the need for manual intervention. Who needs business process as a service (BPaaS)? Business process as a service can be beneficial for organizations across sizes and industries. For example, instead of hiring an outside firm to manage their finance and accounting needs, a company might instead execute this function via a cloud-based platform licensed through a monthly subscription model.  This naturally brings costs down and offers a more flexible and scalable way of managing operations.  Any company looking to manage processes without the costs associated with hiring, training, and managing an internal team or department may find that BPaaS is an effective solution.  What are the benefits of outsourcing business processes? There are many benefits associated with outsourcing business processes. These benefits include cost and time savings, efficiency gains, the ability to focus on core business competencies, and more. Be sure to keep these in mind when contemplating outsourcing professional services key success factors, and which professional services agency is right for you.Cost savingsHigh costs associated with labor, training, management, and infrastructure can be a barrier as an organization scales and grows its operations. Outsourcing non-core processes can enable businesses to meet their objectives and operational needs while minimizing these internal costs and time commitments. Access to expertise and improved efficiencyBPO gives businesses access to vendors that have the necessary expertise, equipment, and personnel needed to execute a project or function on their behalf. This expertise means they are better equipped to provide cutting-edge, compliant, and effective services.  Ability to focus on key business competencies As a company grows and scales, there is often a need for growth or expansion in other areas of the business.  For example, a high-growth eCommerce company may need increased customer support capabilities to provide quality assistance to customer queries and issues. In this instance, outsourcing customer support staff to an agency or outside vendor allows the business to focus on its main competencies while also addressing customer challenges that can impact the bottom line.  As is the case with most things, business process outsourcing can have its set of challenges and risks. Are there risks to business process outsourcing? Risks in business process outsourcing can include lower than expected or inconsistent quality of service, lack of visibility and collaboration with the vendor, and security considerations. Inconsistent delivery We’ve all been there. A service looks good on paper, but the results turn out to be inconsistent or of a lower standard than expected. This is always a risk, especially when outside vendors are involved.  Lack of visibility and collaboration When handing over the keys to a business function, visibility and communication allow those within the organization to accurately track progress, success, and any challenges. Lack of visibility is a huge risk and could mean that a lower standard of service is inadvertently being passed on to customers.  Privacy and security concerns Privacy and security are a top concern in business process outsourcing. In most cases, BPO will involve some degree of handling sensitive or confidential internal data. Engaging a vendor with lax digital security policies may make an organization vulnerable to breaches or attacks.  As Deloitte notes, the tax implications of business process outsourcing should also be a consideration and factored into any business case. How to choose the right BPO vendor Choosing the right vendor can help avoid headaches, losses, and disputes. Here are some tips for choosing the right BPO partner for your business.  Due diligenceDue diligence will involve researching the vendor and their reputation to determine if they have success and experience with your industry, project type, or company size. Understand costsWhile cost-saving is a major factor when establishing a BPO partnership, unexpected fees may make outsourcing pricier than initially thought. Evaluate security infrastructureWhen determining the suitability of a vendor, be sure to assess their ability to manage and protect sensitive information.  Communicate clear objectives and KPIsClearly communicate objectives, expected outcomes, and KPIs and ensure they have the capacity to deliver.  Ensure stabilityOutsourcing a business function can be risky if the third party is in a financially, legally, or otherwise unstable position. Overreliance on unstable vendors can be a unique challenge to overcome.  How to organize your BPO with Wrike Streamline and simplify your business process outsourcing with Wrike. With Wrike, you can:  Create and manage a risk register for your vendor and the outsourced function Invite vendors as external collaborators to share reports and status updates Share and store vendor meeting minutes using our actional meeting notes template Integrate data from 400+ applications like Salesforce, Marketo, and more  Take advantage of the cost savings, time savings, and expertise that BPO and BPaaS can afford your business. Be sure to track and manage progress, communication, and risk using Wrike.  Sign up for a free two-week trial and discover why 2 million+ people trust Wrike to manage and execute their tasks and projects.  

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  • 11.2 Designing the Business Model
  • Introduction
  • 1.1 Entrepreneurship Today
  • 1.2 Entrepreneurial Vision and Goals
  • 1.3 The Entrepreneurial Mindset
  • Review Questions
  • Discussion Questions
  • Case Questions
  • Suggested Resources
  • 2.1 Overview of the Entrepreneurial Journey
  • 2.2 The Process of Becoming an Entrepreneur
  • 2.3 Entrepreneurial Pathways
  • 2.4 Frameworks to Inform Your Entrepreneurial Path
  • 3.1 Ethical and Legal Issues in Entrepreneurship
  • 3.2 Corporate Social Responsibility and Social Entrepreneurship
  • 3.3 Developing a Workplace Culture of Ethical Excellence and Accountability
  • 4.1 Tools for Creativity and Innovation
  • 4.2 Creativity, Innovation, and Invention: How They Differ
  • 4.3 Developing Ideas, Innovations, and Inventions
  • 5.1 Entrepreneurial Opportunity
  • 5.2 Researching Potential Business Opportunities
  • 5.3 Competitive Analysis
  • 6.1 Problem Solving to Find Entrepreneurial Solutions
  • 6.2 Creative Problem-Solving Process
  • 6.3 Design Thinking
  • 6.4 Lean Processes
  • 7.1 Clarifying Your Vision, Mission, and Goals
  • 7.2 Sharing Your Entrepreneurial Story
  • 7.3 Developing Pitches for Various Audiences and Goals
  • 7.4 Protecting Your Idea and Polishing the Pitch through Feedback
  • 7.5 Reality Check: Contests and Competitions
  • 8.1 Entrepreneurial Marketing and the Marketing Mix
  • 8.2 Market Research, Market Opportunity Recognition, and Target Market
  • 8.3 Marketing Techniques and Tools for Entrepreneurs
  • 8.4 Entrepreneurial Branding
  • 8.5 Marketing Strategy and the Marketing Plan
  • 8.6 Sales and Customer Service
  • 9.1 Overview of Entrepreneurial Finance and Accounting Strategies
  • 9.2 Special Funding Strategies
  • 9.3 Accounting Basics for Entrepreneurs
  • 9.4 Developing Startup Financial Statements and Projections
  • 10.1 Launching the Imperfect Business: Lean Startup
  • 10.2 Why Early Failure Can Lead to Success Later
  • 10.3 The Challenging Truth about Business Ownership
  • 10.4 Managing, Following, and Adjusting the Initial Plan
  • 10.5 Growth: Signs, Pains, and Cautions
  • 11.1 Avoiding the “Field of Dreams” Approach
  • 11.3 Conducting a Feasibility Analysis
  • 11.4 The Business Plan
  • 12.1 Building and Connecting to Networks
  • 12.2 Building the Entrepreneurial Dream Team
  • 12.3 Designing a Startup Operational Plan
  • 13.1 Business Structures: Overview of Legal and Tax Considerations
  • 13.2 Corporations
  • 13.3 Partnerships and Joint Ventures
  • 13.4 Limited Liability Companies
  • 13.5 Sole Proprietorships
  • 13.6 Additional Considerations: Capital Acquisition, Business Domicile, and Technology
  • 13.7 Mitigating and Managing Risks
  • 14.1 Types of Resources
  • 14.2 Using the PEST Framework to Assess Resource Needs
  • 14.3 Managing Resources over the Venture Life Cycle
  • 15.1 Launching Your Venture
  • 15.2 Making Difficult Business Decisions in Response to Challenges
  • 15.3 Seeking Help or Support
  • 15.4 Now What? Serving as a Mentor, Consultant, or Champion
  • 15.5 Reflections: Documenting the Journey
  • A | Suggested Resources

Portions of the material in this section are based on original work by Geoffrey Graybeal and produced with support from the Rebus Community. The original is freely available under the terms of the CC BY 4.0 license at https://press.rebus.community/media-innovation-and-entrepreneurship/.

Learning Objectives

By the end of this section, you will be able to:

  • Define a business model and its purpose
  • Describe a business model canvas
  • Describe a lean model canvas
  • Describe a social business model canvas

According to Alexander Osterwalder and Yves Pigneur , the authors of Business Model Generation , a business model “describes the rationale of how an organization creates, delivers and captures value.” Nevertheless, there is no single definition of this term, and usage varies widely. 29

In standard business usage, a business model is a plan for how venture will be funded; how the venture creates value for its stakeholders, including customers; how the venture’s offerings are made and distributed to the end users; and the how income will be generated through this process. The business model refers more to the design of the business, whereas a business plan is a planning document used for operations.

Each business model is unique to the company it describes. A typical business model addresses the desirability, feasibility, and viability of a company, product, or service. At a bare minimum, a business model needs to address revenue streams (e.g., a revenue model), a value proposition, and customer segments. In non-jargon English, this means you want to address what your idea is, who will use it, why they will use it, and how you will make money off it.

A canvas is a display that would-be entrepreneurs commonly use to map out and plan different components of their business models. There are several different types of canvases, with the business model canvas and the lean canvas being the most commonly used. There are hard-copy canvases modeled after an art canvas as well as digital versions. The original physical canvases are meant to serve as visual tools, used with sticky notes and sketches.

As developed by Osterwalder and Pigneur, the business model canvas has nine components, as shown in Figure 11.6 .

Link to Learning

Visit this site to see examples of completed Business Model Canvases for a variety of industries for a deeper understanding of how the different categories are filled in.

Osterwalder and Pigneur wrote Value Proposition Design as a sequel to Business Model Generation . Their value proposition canvas is a plug-in that complements the business model canvas, going in depth on activities such as encouraging entrepreneurs to address and tackle customer pains, gains, and jobs-to-be-done trigger questions, and designing pain relievers and gains. The complementary and accompanying activities and resources can be useful for a deeper dive into and understanding of customer value creation in the form of value proposition, although there are other approaches to conceptualizing your value proposition. For Christensen, the originator of the disruptive innovation and jobs-to-be-done theories, a value proposition is a product that helps customers do a job they’ve been trying to do more effectively, conveniently, and affordably.

Finding the intersection of your customers’ problems and your solutions is how you create a unique value proposition, according to the entrepreneur Ash Maurya , the author of Scaling Lean and Running Lean . In Running Lean , Maurya offers the following formula for creating an initial value proposition in the canvas, as shown in Figure 11.7 .

Maurya deviated from the standard business model canvas to create the lean canvas. It overlaps the business model canvas in five of the nine components: customer segments, value proposition, revenue streams, channels, and cost structure ( Figure 11.8 ]. Rather than addressing key partners, key activities, and key resources, the lean canvas helps you tackle problems, solutions, and key metrics instead.

Visit this site to see examples of completed Lean Model Canvases from some major companies for a deeper understanding of how the canvas can be applied.

While the business model canvas and the lean canvas are similar in format, there are differences in how they are used. It is generally accepted that the lean canvas model is a better fit for startups, whereas the business model canvas works well for already established businesses. The lean canvas is simpler; the business model canvas provides a more complete picture of a mature business.

Watch this Railsware video that demonstrates how the lean canvas model might be applied to startups to learn more. In the case example in the video, the lean canvas model is applied to the successful P2P ride-sharing app Uber, as if it were a startup.

Both the business model canvas and the lean canvas are designed for constant iterations, allowing for multiple versions and changes throughout the entrepreneurial process. Part of that process involves customer discovery; thus, the canvases invoke customer-focused design. The target customer is integrated into the canvas from the start through the use of a customer empathy map and a number of design-thinking ideation activities. 30 The customer empathy map is a portrayal of a target customer —the most promising candidate from a business’s customer segments—that explores the understanding of that person’s problems and needs ( Figure 11.9 ). Osterwalder and Pigneur used a customer empathy map as part of the design ideation phase of developing a business model canvas. There are differing versions of customer empathy maps, but most seek to answer common questions pertaining to the customer, such as:

  • With whom are we empathizing?
  • What do they need to do?
  • What do they see?
  • What do they say?
  • What do they do?
  • What do they hear?
  • What do they think?

Phillips, Proctor & Gamble, Microsoft, and Yeti are examples of well-known companies that make use of customer empathy mapping because, according to the journal Entrepreneur , every transaction can be turned into a meaningful and valuable customer interaction. 31 Once a company analyzes the results of customer mapping exercises, it may very well lead to new products that serve customer needs and/or wants.

For example, Philips used empathy mapping to detect a high level of fear in young patients immediately before an MRI medical procedure, so it invented a miniature version of the CAT scan equipment used in the procedure called the “kitten scanner” along with toy animal characters that were used to dispel the fear of MRIs among children. Proctor & Gamble created a new advertisement that was released for the 2012 Olympics visualizing the trials and tribulations of mothers raising young athletes, demonstrating Proctor and Gamble’s awareness that some of its customers wanted or needed empathy for the sacrifices they had made to help their children succeed. Likewise, Microsoft has attempted to demonstrate empathy with customers’ privacy concerns by developing an interactive website that explains not only how data is stolen but also how we can better protect our own data. 32

On their company website, the now-famous Yeti cooler company publicly extols the value of empathy mapping, explaining that it leads to better products. Yeti doesn’t just create one on its own, it actually asks its clients to work with the company to create an empathy map. 33 Thus, empathy mapping for Yeti is part of its product development process.

Customer empathy maps also strive to address customer pains (in this case, fears, frustrations, and anxieties) and gains (wants, needs, hopes, and dreams). 34

Strategyzer offers six videos outlining the business model canvas that total about 12 minutes; specifically they cover the prototyping journey from ideation to visualization of conceptualization.

Business Model Canvas 35

As Osterwalder and Pigneur describe it, according to Media Innovation and Entrepreneurship , their business model canvas blocks include revenue streams, customer segments, value propositions, cost structures, channels, key activities, key partners, key resources, and customer relationships.

Early on, your greatest focus should be on the right side of the canvas because:

  • These are, in many ways, the most critical aspects of starting a new venture (customer segments, value propositions, channels, and revenue streams).
  • The most fluid (revenue streams, channels, and value propositions will likely differ for the differing customer segments and, as you iterate and adapt throughout the customer discovery process, could likely change).
  • These follow a logical temporal order (there’s no need to focus on the costs of building a company if you won’t have customers).

In a follow-up to business model generation, the Strategyzer team created a second canvas, the value proposition canvas: https://www.strategyzer.com/canvas/value-proposition-canvas. The value proposition canvas is a new tool that pulls out the customer segment and value proposition blocks of the business model canvas, and encourages more in-depth exploration of those blocks to achieve a good fit between the two. The value proposition canvas tool looks at customer pains, gains and jobs to be done on the customer side and painkillers, gain creators, and products and services on the value proposition side. 36

Read this blog that provides a walk-through of how to fill in a value proposition canvas to learn more.

When you peel away the language used to describe business models, the early startup planning stages come down to a series of questions. When it comes to formulating a business model for a startup concept, another popular framework used in entrepreneurial circles is that of desirability-feasibility-viability Figure 11.10 ). This framework forces the entrepreneur to address broad questions about the startup concept:

  • Desirability: How desirable is the product? Who will use it and why?
  • Feasibility: How feasible is this idea? What are the costs of making it? How practical is the concept?
  • Viability: Will this idea remain viable? How will it make money? How will it be sustained over time?

These questions then begin to connect to form a narrative about where the startup concept came from, whom it serves, why it’s needed, how it will make money, and how it will be sustained in the future.

The value propositions, customer relationships, customer segments, and channels address the assumptions that will create customer value (desirability). The cost structure and revenue stream blocks are aimed at viability, or overcoming flawed business models. The key partners, key activities, and key resources are about execution and address feasibility. The risk of poor execution can undermine your assumptions that you chose the right infrastructure to execute your business model (feasibility). The risk of solving an irrelevant customer job (sometimes derisively labeled “a solution in search of a problem”) undercuts desirability in your business. The risk of a flawed business model would hamper the financial assumption that your business will earn more money than you spend (viability). Adaptability is about the assumption that you chose the right business model within the context of external factors such as technology change, competition, and regulation.

The business model canvas is not an exhaustive planning tool by any means. 37 , 38 The risk of such external threats is not specifically addressed on the canvas blocks. The external threats not specifically covered by the canvas blocks can be designed for adaptability, that is, the business model canvas is a necessary but insufficient component of determining the viability of the business idea/concept. There are many elements not included in the canvas that entrepreneurs must address. Industry analysis, including a competitive analysis, for example, falls “off canvas” but is important nonetheless.

The Lean Model Canvas

The lean model canvas is Ash Maurya ’s adaptation of the original business model canvas. As we noted earlier, gone are the customer relationships, key activities, key partners, and key resources blocks. Instead, a problem block is added, because as Maurya explains, “Most startups fail, not because they fail to build what they set out to build, but because they waste time, money and effort building the wrong product. I attribute a significant contributor to this failure to a lack of proper ‘problem understanding’ from the start.” Maurya next added a solution block to the lean model canvas, which corresponds well with features on a minimum viable product (MVP), which you will recall was covered in depth in Launch for Growth to Success . The lean model canvas also adds an “Unfair Advantage” block, similar to the block for competitive advantages or barriers to entry found in a business plan. 39

Social Business Model Canvas

As you’ve noticed by now, the core canvas components are common throughout the various versions. Many of the blocks of the social business model canvas are similar to those used in the business model canvas and the lean model canvas. 40 A few differences, as developed by Tandemic , focus on areas unique to social entrepreneurship ventures. For example, the new areas added include measures of what kind of social impact you are creating or developing, measures of surplus to address what happens with profits and where you intend to reinvest them, and measures of beneficiary segments, and social and customer value propositions. 41 These could be measures such as the number of trees planted, number of refugees housed and fed, jobs created, or investments made—depending on the venture. Social impact looks at an organization’s social mission beyond the bottom line. Measurement can differ among social entrepreneurs, but in terms of the canvas, impact measures are an effort to establish quantifiable metrics.

Social impact can be hard to measure, but nonetheless, many social entrepreneurs aim for long-lasting impact. 42 A 2014 report by the think tank, consultancy, and member network SustainAbility lists cooperative ownership, inclusive sourcing, and the “buy one, give one” model as three forms of social impact. 43 In addition to the Tandemic social business model canvas, there are other versions of similar canvases used for social entrepreneurship. For instance, Osterwalder adapted the business model canvas for mission-driven organizations into a mission model canvas. 44 There’s also a social lean canvas that adds purpose (explaining your reason for creating the venture in terms of social or environmental problems) and impact sections (describing the intended social or environmental impact). 45

This completed social business model canvas for the popular peer-to-peer lending platform Kiva illustrates how the business model canvas can and perhaps should be adapted for social entrepreneurship ventures.

What Can You Do?

Toms Shoes is perhaps one of the best-known companies for adopting a social entrepreneurship purpose into its business model. Part of its early success hinged on the fact that for every pair of shoes a customer bought, the company donated a pair of shoes to someone in need. The company won a prize in 2006 for its innovative solution to poverty. This “ 1-for-1 business model ,” sometimes commonly called the “Toms model” after the shoe company that popularized it, gained traction among other companies that followed suit in similar fashion, seeing both the social and the financial successes in the Toms model. Warby Parker is another example of a company that does essentially the same: A customer purchases a pair of eyeglasses, and the company donates a pair (although Warby Parker pays a third party to procure the glasses, as eyeglasses require an individual prescription, whereas shoes do not).

  • Can you think of an innovative social entrepreneurship business model?

The Birthday Party Project

Paige Chenault wanted homeless children in Dallas to feel special on their birthdays. Many have never experienced a birthday party. So this professional event planner sprang into action in January 2012. She launched the Birthday Party Project (https://www.thebirthdaypartyproject.org/), a nonprofit group whose mission is to celebrate the lives of homeless children (ages one to twenty-two). The group organizes monthly birthday parties with partner shelters. Since its inception, the concept has spread beyond Texas to cities across the United States, including Atlanta, Chicago, Los Angeles, New York, and San Francisco. In six years, the Birthday Party Project has celebrated 4,800 birthdays with 30,000 kids in attendance, eaten 40,000 cupcakes, cracked 30,000 glow sticks, and performed 1,100 renditions of “Happy Birthday.”

  • Identify a need in your community that could become a social entrepreneurship business, as Paige discovered with an initial passion project.
  • 29 Alexander Osterwalder and Yves Pigneur. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Hoboken, NJ: Wiley, 2010.
  • 30 Charlene Perrin. “Create A Customer Empathy Map in 6 Easy Steps!” Conceptboard . March 28, 2019. https://conceptboard.com/blog/create-a-customer-empathy-map-in-6-easy-steps/
  • 31 Vineet Arya. “How to Infuse Empathy in Your Marketing?” Entrepreneur . June 28, 2019. https://www.entrepreneur.com/article/335987
  • 32 Vineet Arya. “How to Infuse Empathy in Your Marketing?” Entrepreneur . June 28, 2019. https://www.entrepreneur.com/article/335987
  • 33 Mike Godlewski. “The Secret to Knowing What a Client Is Thinking? Empathy Maps.” Yeti. February 8, 2016. https://yeti.co/blog/the-secret-to-knowing-what-your-client-is-thinking-empathy-maps/
  • 34 Germán Coppola. “What Is an Empathy Map, and Why Is It Valuable for Your Business?” Medium . November 28, 2017. https://medium.com/swlh/what-is-an-empathy-map-and-why-is-it-valuable-for-your-business-14236be4fdf4
  • 35 This material is based on original work by Geoffrey Graybeal and produced with support from the Rebus Community. The original is freely available under the terms of the CC BY 4.0 license at https://press.rebus.community/media-innovation-and-entrepreneurship/.
  • 36 Michelle Ferrier and Elizabeth Mays. Media Innovation and Entrepreneurship . The Rebus Foundation, 2017. https://press.rebus.community/media-innovation-and-entrepreneurship/.
  • 37 Jennifer van der Meer. "Do You Suffer from Value Proposition Confusion?" Linkedin . October 19, 2016. https://www.linkedin.com/pulse/do-you-suffer-from-value-proposition-confusion-jennifer-van-der-meer/
  • 38 “The Value Proposition Canvas.” Strategyzer . n.d. https://strategyzer.com/canvas/value-proposition-canvas
  • 39 Ash Maurya. “Why Lean Canvas vs Business Model Canvas?” Medium . February 27, 2012. https://blog.leanstack.com/why-lean-canvas-vs-business-model-canvas-af62c0f250f0
  • 40 "Social Business Model Canvas.” Business Model Toolbox . 2013. https://bmtoolbox.net/tools/social-business-model-canvas/
  • 41 “The Business Model Canvas Reinvented for Social Business.” Tandemic . n.d. http://www.socialbusinessmodelcanvas.com
  • 42 Ayse Guclu, J. Gregory Dees, and Beth Battle Anderson. “The Process of Social Entrepreneurship: Creating Opportunities Worthy of Serious Pursuit.” Duke/Fuqua case . 2002. https://centers.fuqua.duke.edu/case/knowledge_items/the-process-of-social-entrepreneurship-creating-opportunities-worthy-of-serious-pursuit/
  • 43 Lindsay Clinton and Ryan Whisnant. “Model Behavior: 20 Business Model Innovations for Sustainability.” SustainAbility . February 2014. https://sustainability.com/wp-content/uploads/2016/07/model_behavior_20_business_model_innovations_for_sustainability.pdf
  • 44 Alexander Osterwalder. “The Mission Model Canvas: An Adapted Business Model Canvas for Mission-Driven Organizations.” Strategyzer . February 25, 2016. https://blog.strategyzer.com/posts/2016/2/24/the-mission-model-canvas-an-adapted-business-model-canvas-for-mission-driven-organizations
  • 45 Social Lean Canvas. n.d. https://socialleancanvas.com/

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  • Authors: Michael Laverty, Chris Littel
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  • Book title: Entrepreneurship
  • Publication date: Jan 16, 2020
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Business model canvas deep dive

Business models: the toolkit to design a disruptive company

In today's fast-paced business world, having a solid understanding of business models is essential for creating a successful and disruptive company. In this deep dive article, we will explore the toolkit to design a disruptive company through the lens of the Business Model Canvas.

1. What is a business model?

Definition:.

A business model describes the rationale of how an organization creates, delivers and captures value. It can be described through 9 building blocks: Customer Segments, Value Propositions, Channels, Customer Relationships, Revenue Streams, Key Resources, Key Activities, Key Partnerships & Cost Structure.

Business Model History

Where did the term even come from?

The search to define what a business model is goes as far back as 1994, when Peter Drucker introduced the theory of the business was a set of assumptions about what a business will and won’t do in an article for the Harvard Business Review. He speaks about how companies fail to keep up with changing market conditions, as well as their duty to identify customers and competitors, their values and behaviour. Now considering that we've had businesses for over hundreds of years - it's pretty remarkable we only just came up with the term 'business model' a few decades ago!

In the middle of the 2002 dot com crisis, Joan Magretta  built on Drucker’s business definition to exclaim that business models are “at heart, stories. Stories that explain how enterprises work. A good business model answers Peter Drucker’s age-old questions: ‘Who is the customer? And what does the customer value?'

The shift from a business plan to business model goes hand-in-hand with the rise of personal computers and the use of spreadsheets. Entrepreneurs used to plan their businesses year by year, quarter by quarter, and write it down in a document almost like a book who’s copy is final. The change occurred hand in hand alongside the introduction of powerful new technology such as Microsoft Excel, enabling people to model them digitally and more accurately. Being able to calculate your entire profit and loss for a business was now available to you on a single Microsoft Excel page. This now meant businesses could be modelled before they were actually launched. Products or services could be done ahead of time in terms of calculating the business' recurring revenue, profit, marketing costs, advertising spend etc. in order to model the framework of the business.

This change in approach prompted the likes of Alexander Osterwalder and Yves Pigneur to invent the Business Model Canvas in 2005, the first ever visual business tool of its kind. Long gone are the days of having to come up with a long & highly unrealistic business plan,  trying to predict what product or service you'll be selling at the company five years from now!

What is the Business Model Canvas (BMC) ?

what-is-a-business-model-BMC-canvas

The Business Model Canvas is a strategic management and lean startup template for developing new or documenting existing business models. It is a visual tool with elements describing a company’s value proposition, infrastructure, customers and finances. It provides an organized way to lay out your assumptions about not only the key resources and key activities of your value chain, but also your value proposition, customer relationships, channels, customer segments, cost structures, and revenue streams.

It assists companies in aligning their activities by illustrating potential trade-offs by comparing them to one another and being able to see the bigger picture of their overall business framework. It's essentially taken Peter Drucker's hypothetical concept of a business 'model' and turned it into something much more tangible, that we can now see visually and use as a tool to consider all the different aspects of a single business model.

The Business Model Canvas explained in a short 2-minute video:

Why use the Business Model Canvas?

what-is-a-business-model-whyuse

Create a shared language

This concept can become a shared language that allows you to easily describe and manipulate business models to create new strategic alternatives. Without such a shared language it is difficult to systematically challenge assumptions about one’s business and innovate successfully.

Simple, visual and practical

The canvas is perfect for any good discussion, meeting, or workshop on business model innovation and creates a shared language. We need a concept that everybody understands: one that facilitates description and discussion. We need to start from the same point and talk about the same thing. The challenge is that the concept must be simple, relevant, and intuitively understandable, while not oversimplifying the complexities of how enterprises function.

Discover opportunities

By going through the process of listing the different parts of your business on the canvas, you begin to visualise and understand the different relationships between the nine building blocks that make up the tool.

Iterate quickly

Whether you’re using sticky notes on a real life Business Model Canvas or you’re designing your business model on the Strategyzer app , you can iterate on your designs very quickly. The tool enables you to prototype a first version and simply keep iterating until you’ve tested enough ideas to find product-market fit.

Read more: 14 Ways to Apply the Business Model Canvas

2. The 9 building blocks of The Business Model Canvas

We believe a business model can best be described through nine basic building blocks that show the logic of how a company intends to deliver value and make money. The nine blocks cover the three main areas of a business: desirability, viability and feasibility. The business model is like a blueprint for a strategy to be implemented through organizational structures, processes, and systems. Let’s take a look into the three different sections:

building-blocks-DFV-canvas

Desirability

Value propositions.

The Value Proposition's Building Block describes the bundle of products and services that create value for a specific Customer Segment The Value Proposition is the reason why customers turn to one company over another. It solves a customer problem or satisfies a customer need.

Each Value Proposition consists of a selected bundle of products and/or services that caters to the requirements of a specific Customer Segment. In this sense, the Value Proposition is an aggregation, or bundle, of benefits that a company offers customers. Some Value Propositions may be innovative and represent a new or disruptive offer. Others may be similar to existing market offers, but with added features and attributes

Customer Segments

The Customer Segments Building Block defines the different groups of people or organizations an enterprise aims to reach and serve Customers are the heart of any business model. Without (profitable) customers, no company can survive for long. In order to better satisfy customers, a company may group them into distinct segments with common needs, common behaviors, or other attributes. A business model may define one or several large or small Customer Segments. An organization must make a conscious decision about which segments to serve and which segments to ignore. Once this decision is made, a business model can be carefully designed around a strong understanding of specific customer needs.

The Channels Building Block describes how a company communicates with and reaches its Customer Segments.

Channels are customer touch points that play an important role in the customer experience. Channels serve several functions, including:

  • Raising awareness among customers about a company’s products and services
  • Helping customers evaluate a company’s Value Proposition
  • Allowing customers to purchase specific products and services
  • Delivering a Value Proposition to customers
  • Providing post-purchase customer support

Customer Relationships

The Customer Relationships Building Block describes the types of relationships a company establishes with specific Customer Segments. A company should clarify the type of relationship it wants to establish with each Customer Segment. Relationships can range from personal to automated. Customer relationships may be driven by the following motivations:

  • Customer acquisition
  • Customer retention
  • Boosting sales (up-selling)

Revenue Streams

The Revenue Streams Building Block represents the cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings).

If customers is the heart of a business model, Revenue Streams are its arteries. A company must ask itself, For what value is each Customer Segment truly willing to pay? Successfully answering that question allows the firm to generate one or more Revenue Streams from each Customer Segment. Each Revenue Stream may have different pricing mechanisms, such as fixed list prices, bargaining, auctioning, market dependent, volume dependent, or yield management.

A business model can involve two different types of Revenue Streams:

  • Transaction revenues resulting from one-time customer payments
  • Recurring revenues resulting from ongoing payments to either deliver a Value Proposition to customers or provide post-purchase customer support

Cost Structure

The Cost Structure describes all costs incurred to operate a business model. This building block describes the most important costs incurred while operating under a particular business model.

Creating and delivering value, maintaining Customer Relationships, and generating revenue all incur costs. Such costs can be calculated relatively easily after defining Key Resources, Key Activities, and Key Partnerships. Some are more cost-driven than others. So-called “no frills” airlines, for instance, have built business models entirely around low cost structures

Feasibility

The Key Resources Building Block describes the most important assets required to make a business model work Every business model requires Key Resources. These resources allow an enterprise to create and offer a Value Proposition, reach markets, maintain relationships with Customer Segments, and earn revenues.

Different Key Resources are needed depending on the type of business you are building. A microchip manufacturer requires capital-intensive production facilities, whereas a microchip designer focuses more on human resources. Key resources can be physical, financial, intellectual, or human. Key resources can be owned or leased by the company or acquired from key partners.

Key Activities

The Key Activities Building Block describes the most important things a company must do to make its business model work. Every model calls for a number of Key Activities. These are the most important actions a company must take to operate successfully. Like Key Resources, they are required to create and offer a Value Proposition, reach markets, maintain Customer Relationships, and earn revenues. And like Key Resources, Key Activities differ depending on business model type. For software maker Microsoft, Key Activities include software development. For PC manufacturer Dell, Key Activities include supply chain management. For consultancy McKinsey, Key Activities include problem solving.

Partnerships

The Key Partnerships Building Block describes the network of suppliers and partners that make the business model work. Companies forge partnerships for many reasons, and partnerships are becoming a cornerstone of many business models. Companies create alliances to optimize, reduce risk, or acquire resources. We can distinguish between four different types of partnerships:

  • Strategic alliances between non-competitors
  • Coopetition: strategic partnerships between competitors
  • Joint ventures to develop new businesses
  • Buyer-supplier relationships to assure reliable supplies

3. Types of business models

In 2009, Amazon expands from platform to sales by launching Amazon private labels. It copies third-party sellers who created successful businesses by sourcing products absent from Amazon’s platform. Amazon sees this as an opportunity to create its own line of products.

Amazon Business Model

In 1999 Amazon launched its third-party seller marketplace and established itself as an incredibly successful e-commerce platform for other retailers. In 2007 Amazon began to use its platform to sell its own electronic devices (Kindle e-reader) and expanded to private label products under the AmazonBasics brand. While many companies aim to shift from sales to platform, Amazon executed are verse shift from platform to sales. With its private label business Amazon started to compete with third-party suppliers who are also customers of its e-commerce business. Amazon continuously expanded its private label product catalog with a wide selection (from electronics to clothing and everyday accessories) and lower prices.

The term “freemium” was coined by Jarid Lukin and popularized by venture capitalist Fred Wilson on his blog. It stands for business models, mainly Web-based, that blend free basic services with paid premium services. The freemium model is characterized by a large user base benefiting from a free, no-strings-attached offer. Most of these users never become paying customers; only a small portion, usually less than 10 percent of all users, subscribe to the paid premium services. This small base of paying users subsidizes the free users. This is possible because of the low marginal cost of serving additional free users.

In a freemium model, the key metrics to watch are:

(1) the average cost of serving a free user

(2) the rates at which free users convert to premium (paying) customers

Flickr Business Model

Flickr, the popular photo-sharing Web site acquired by Yahoo! in 2005, provides a good example of a freemium business model. Flickr users can subscribe for free to a basic account that enables them to upload and share images. The free service has certain constraints, such as limited storage space and a maximum number of uploads per month. For a small annual fee users can purchase a “pro” account and enjoy unlimited uploads and storage space, plus additional features.

Multi-sided platforms, known by economists as multi sided markets, are an important business phenomenon. They have existed for a long time, but proliferated with the rise of information technology. The Visa credit card, the Microsoft Windows operating system, the FinancialTimes, Google, the Wii game console, and Facebook are just a few examples of successful multi-sided platforms. We address them here because they represent an increasingly important business model pattern.

What exactly are multi-sided platforms? They are platforms that bring together two or more distinct but interdependent groups of customers. They create value as intermediaries by connecting these groups. Credit cards, for example, link merchants with cardholders; computer operating systems link hardware manufacturers, application developers, and users; newspapers link readers and advertisers; video gaming consoles link game developers with players.

The key is that the platform must attract and serve all groups simultaneously in order to create value. The platform’s value for a particular user group depends substantially on the number of users on the platform’s “other sides.” A video game console will only attract buyers if enough games are available for the platform. On the other hand, game developers will develop games for a new video console only if a substantial number of gamers already use it. Hence multi-sided platforms often face a “chicken and egg” dilemma.

One way multi-sided platforms solve this problem is by subsidizing a Customer Segment. Though a platform operator incurs costs by serving all customer groups, it often decides to lure one segment to the platform with an inexpensive or free Value Proposition in order to subsequently attract users of the platform’s “other side.” One difficulty multi-sided platform operators face is understanding which side to subsidize and how to price correctly to attract customers.

Multi-sided platforms bring together two or more distinct but interdependent groups of customers. Such platforms are of value to one group of customers only if the other groups of customers are also present. The platform creates value by facilitating interactions between the different groups. A multi-sided platform grows in value to the extent that it attracts more users, a phenomenon known as the network effects.

Let’s take a look into Google ’s multi-sided business model.

Google Business Model

As a multi-sided platform Google has a very distinct revenue model. It makes money from one Customer Segment, advertisers, while subsidizing free offers to two other segments: Web surfers and content owners. This is logical because the more ads it displays to Web surfers, the more it earns from advertisers. Increased advertising earnings, in turn, motivates even more content owners to become AdSense partners. Advertisers don’t directly buy advertising space from Google. They bid on ad-related keywords associated with either search terms or content on third party Web sites. The bidding occurs through an AdWords auction service: the more popular a keyword, the more an advertiser has to pay for it. The substantial revenue that Google earns from AdWords allows it to continuously improve its free offers to search engine and AdSense users.

Google’s Key Resource is its search platform, which powers three different services: Web search (Google.com), advertising (AdWords), and third-party content monetization (AdSense). These services are based on highly complex proprietary search and match making algorithms supported by an extensive IT infrastructure.

Google’s three Key Activities can be defined as follows:

1. Building and maintaining the search infrastructure.

2. Managing the three main services.

3. Promoting the platform to new users, content owners, and advertisers.

More platform business model examples: Visa, Google, eBay, Microsoft Windows, Financial Times

In 1999 Salesforce.com disrupts the customer relationship management (CRM) arena by offering CRM-as-a service over the Internet. Salesforce unlocks a new market and continuously strengthens its business model with new innovations.

Salesforce.com was founded in 1999 with the goal of “making enterprise software as easy to use as a website like amazon.com.” Salesforce pioneered the software as-a-service (Saas) for customer relationship management tools. The company didn’t stop there and has constantly improved its services and business model. We distinguish between two, non-exhaustive phases: the early business model in 1999 and extensions starting in 2005.

Salesforce Business Model

Subscription

In 2006, Spotify launches a free online music service to compete against freely available, pirated music. Its main revenue source comes from users upgrading to a premium subscription.

Spotify is a music streaming platform that gives users access to a large catalog of music. It uses a freemium revenue model that offers a basic, limited, ad-supported service for free and an unlimited premium service for a subscription fee.

Spotify relies heavily on its music algorithms and its community of users and artists to keep its premium experience delightful. Its premium subscriber base has grown from 10% of total users in 2011 to 46% in 2018.

From the start Spotify saw itself as a legal alternative to pirated music and paid song purchases on iTunes. Spotify pays a significant portion of its revenue in the form of royalties to music labels. It has paid close to $10 billion in royalties since its launch in 2006.

The company accelerated the shift from music downloads to streaming and disrupted Apple iTunes in the process. For the first time in company history, Spotify made a profit in 2019.

Spotify Business Model

4. What is business model innovation?

Business model innovation describes the innovative processes and rationale of how an business creates, delivers and captures value as opposed to how to create a new product or service. It's about fundamentally rethinking your business around a clear, new customer need, and then realigning your key resources, processes and profit formula with this new value proposition.

It’s not easy approach to take when making decisions as it pushes people out of their comfort zones. But the results can be dramatic, providing a real competitive business advantage - and we're seeing this sort of disruption a lot more often. Internet technology giants such as Amazon as world-class at demonstrating this kind of business acumen, where the founder Jeff Bezos even describes his company as 'the best place to fail in the world', referring to his company's approach to coming up with new business ideas.

Take Amazon Web Services for example: A project grew out of the company's need to improve their own tech stack performance. The American company went on to create Amazon Web Services to offers customers reliable, scalable, and inexpensive cloud computing services, paying only for what they used. Within 5-years would go on to totally dominate the cloud computing market and make Amazon over $10bn.

Read the case study we put together for Amazon Marketplace, using the business model portfolio to tell the story of how they validated their business idea: Patience is a Virtue: An Amazon Case Study in Three Parts . Otherwise you can read about the differences between organizations such as Amazon and Nestle .

4. Business Model Patterns

In the following section we outline a pattern library that is split into two categories of patterns: invent patterns to enhance new ventures and shift patterns to substantially improve an established, but deteriorating business model to make it more competitive.

www.strategyzer.comhubfs01-Hero-BusinessModelPatterns

Invent Patterns

Codify aspects of a superior business model. Each pattern helps you think through how to compete on a superior business model, beyond the traditional means of competition based on technology, product, service, or price. The best business models incorporate several patterns to outcompete others.

Shift Patterns:

02-HiltiShift-HiltiShiftCase

Codify the shift from one type of business model to another. Each pattern helps you think through how you could substantially improve your current business model by shifting it from a less competitive one to a more competitive one.

Applying Business Model Patterns

Understand patterns to better perform the following business model activities:

Design and assess

Use patterns to design better business models around market opportunities, technology innovations, or new products and services. Use them to assess the competitiveness of an existing one.

Disrupt and transform

Use patterns as an inspiration to transform your market. In the following section, we provide a library of companies that disrupted entire industries. They were the first to introduce new business model patterns in their arena.

Question and improve

Use patterns to ask better business model questions, beyond the traditional product, service, pricing, and market-related questions. Regardless, whether you are a senior leader, innovation lead, entrepreneur, investor, or faculty, you can help develop superior business models based on better questions.

03-InventPatterns-BusinessModelPatterns

Frontstage Disruption

Market explorers: unlock markets.

Develop innovative value propositions that create, unleash, or unlock completely new,  untapped, or underserved markets with large potential.

Be a pioneer and unearth new revenue potential through market exploration.

Channel Kings: Access customers

Radically change how to reach and acquire a large number of customers. Pioneer innovative new channels that haven’t been used in your industry before.

Gravity Creators: Lock in customers

Make it difficult for customers to leave or switch to competitors. Create switching costs where previously there were none and turn transactional industries into ones with long term relationships.

A great product isn’t enough to bring a flock of customers to your door. You must design a superior business model to attract and retain customers into your ecosystem. Switching costs have enabled industry leaders such as Adobe, Salesforce, Microsoft or Rolls Royce to lock customers in and outcompete other players.

Backstage Disruption

Resource castles: build moats.

Build a competitive advantage with key resources that are difficult or impossible for competitors to copy.

Activity Differentiators: Better configure activities

Radically change which activities they perform and how they combine them to create and deliver value to customers.Create innovative value propositions based on activity differentiation.

Scalers: Grow faster

Find radically new ways to scale where others stay stuck in conventional non-scalable business models.

Profit-Formula Disruption

Revenue differentiators: boost revenues.

Find innovative ways to capture value, unlock previously unprofitable markets, and/or substantially increase revenues.

Recurring Revenue – Generate recurring revenues from one-time sales. Advantages include compound revenue growth (new revenues stack up on top of existing revenues), lower cost of sales (sell once and earn recurrently), and predictability.

Bait & Hook – Lock customers in with a base product (the bait) in order to generate recurring revenues from a consumable (the hook) that customers need recurrently to benefit from the base product.

Freemium Providers – Offer basic products and services free of charge and premium services and advanced product features for a fee. The best freemium models acquire a large customer base and excel in converting a substantial percentage to paid users.

Subsidizers – Offer the full value proposition for free or cheaply by subsidizing it through a strong alternative revenue stream. This differs from freemium, which only gives free access to a basic version of products and services.

Cost Differentiators: Kill costs

Build a business model with a game-changing cost structure, not just by streamlining activities and resources, but by doing things in disruptive new ways.

Resource Dodgers – Eliminate the most costly and capital-intensive resources from your business model to create a game-changing cost structure. (Examples: Airbnb, Uber, Bharti Airtel)

Technologists – Use technology in radically new ways to create a game-changing cost structure. (Examples: WhatsApp, Skype)

Low Cost – Combine activities, resources, and partners in radically new ways to create a game-changing cost structure with disruptively low prices. (Examples: EasyJet, Ryanair, Trader Joe’s)

Margin Masters: Boost margins

Achieve significantly higher margins than competitors by focusing on what customers are willing to pay for most, while keeping your cost structure in check. Prioritize profitability over market share.

Contrarians – Significantly reduce costs and increase value at the same time. Eliminate the most costly resources, activities, and partners from your business model, even if that means limiting the value proposition. Compensate by focusing on features in the value proposition that a well-defined customer segment loves and is willing to pay for, but which are relatively cheap to provide. (Examples: CitizenM, Cirque de Soleil, Nintendo Wii)

High Enders – Create products and services at the high end of the market spectrum for a broad range of high-end customers. Use these to maximize margins and avoid the small size and extreme cost structure of a luxury niche. (Example: iPhone )

5. Business model examples

Below are 4 examples of business models. See our searchable business model examples catalog for dozens of business models analyzed using the business model canvas.

Tesla was founded in 2003 with the goal of commercializing electric vehicles, starting with luxury sports cars and then moving onto affordable, mass market vehicles. In 2008, Tesla began selling its Roadster. Its first breakthrough was in 2012 when it launched the Model S.

Tesla’s first “affordable” car, the Model 3, was announced in 2015 and produced in 2017. Prior to Tesla, the market for electric vehicles was relatively insignificant and was served by utilitarian and unremarkable models. Tesla was the first car manufacturer to view the market for electric vehicles differently: Tesla saw a significant opportunity by focusing on performance and the high end of the market.

Tesla Business Model

Learn more about Tesla’s business model by downloading your free copy of the 100-page preview of our bestselling book: The Invincible Company.

IKEA, the popular furniture company, also relies on customers as their free workforce but in a different way. Hundreds of thousands of IKEA customers assemble their bookshelves, tables, and other furniture at home after buying big boxes at big stores.

This was unthinkable before IKEA made it popular, because people used to expect furniture manufacturers to perform the assembly task. There’s a reason why customers are willing to do the work and it's because IKEA’s business model of boxed furniture offers a larger choice, immediate delivery, and all at a lower cost.

Ikea - Business Model

Read more about how Facebook, IKEA, WhatsApp, and Uber's business model make billions .

Dollar Shave Club

Dollar Shave Club (“DSC”) disrupted the market for shaving products by selling directly to consumers through its online store. Because they cut out the middleman (retail), they can pass on savings to customers. DSC makes up for the lack of established brand and distribution reach by harnessing the power of viral videos and internet marketing.

Could you access your customers in an unprecedented and scalable way? How could you cut out the middleman and create direct access to your end-customers?

Dollar Shave Club - Business Model Canvas Example

Apple is one of the leading smartphone manufacturers in the world. But their product doesn’t do it all; in fact, you could argue that there are better smartphones out there. But Apple’s business model has moats that make it extremely difficult for others to overthrow them.

Apple - iPhone - Business Model

For example Apple’s app store connects its millions of iOS users with countless software developers that supply hundreds of thousands of apps searching for an audience. It's this ecosystem that's hard to copy, not the technology. Even with the best technology it is very hard to gain market share. Only Google with its Android operating system has managed to create a competing ecosystem.

Other interesting business models: AirBnb , ARM , citizenM , Dell , Didi , Dyson , Fortnite , M-Pesa , Microsoft Windows , Patagonia , Spotify , Tupperware , Waze , Whatsapp , Zara .

6. Business model tools and resources

  • Business Model Canvas template
  • The Portfolio Map template
  • Business Model Generation masterclass
  • Business Model Generation book
  • Value Proposition Design book
  • Testing Business Ideas book
  • The Invincible Company book
  • Business Model Generation Masterclass
  • Testing Business Ideas by David Bland & Alexander Osterwalder
  • The Invincible Company: Manage a portfolio of innovation

About the speakers

Download your free copy of this whitepaper now, explore other examples.

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Business Model Canvas

This handy worksheet can help you think through some key aspects of a social enterprise, service, or business., suggested time, level of difficulty, materials needed.

Pens, a Business Model Canvas worksheet

Participants

Design team

Process Phase

business model canvas design

As you think through your idea and start to test it, you’ll also need to remain cognizant of your business model. A good way to keep it front and center in your mind is by using a Business Model Canvas. This simple sheet asks you key questions like what’s your revenue stream, what are key partnerships you’ll need to forge, and what resources are vital to your operation. You might even use a Business Model Canvas several times in the process as elements are bound to change as you refine your idea and move toward implementing it.

  • Download and print out a Business Model Canvas for each of your team members. Here’s a good one.
  • Sit down with your team and start to fill out the sections of the Business Model Canvas. When you fill it out the first time, expect for there to be holes. It’s okay not to know exactly how everything will work.
  • You may need to pause filling out the sheet to get more information. That’s fine.
  • When you’re done, post the Business Model Canvas in your workspace. Like everything else in the human-centered design process, you’ll refine it. Consider doing a new one as your project progresses.

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Business Model Canvas (2023) – Ultimate Example and Free Download

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Vaughan Broderick

Vaughan Broderick

Business Model Canvas

Have you been wondering what the business model canvas is? Or, what are the 9 components of the business model canvas? Or, why the business model canvas is important?

If these questions sound familiar, you are not alone.

Since 2021, this guide has been downloaded thousands of times by global leaders, innovators and entrepreneurs to disrupt, redesign, transform and accelerate business competitiveness and growth.

The guide has been updated the guide to respond to today’s ambiguity and volatility with hundreds of hours of research and real-world use, making it the ultimate business model canvas guide.

In the article, I’ll show you :

  • What the business model canvas is
  • How to fill in the business model canvas
  • How to innovate the business model canvas

Let’s get going!

What is the Business Model Canvas?

Business Model Canvas

The Business Model Canvas (BMC), invented by Alex Osterwalder of Strategyzer, is a tool to describe and visualise how a business creates, delivers and captures value all in an easy to understand, one-page document.

It’s a way to organise and present assumptions regarding the nine inter-related building blocks: customer segments, value proposition, channels, customer relationships, key partners, key resources, key activities, cost structure and revenue.

Most importantly, the BMC describes a story of a business strategy or lean startup innovation template. For example, how ‘back-stage’ infrastructure (partners, activities and resources) supports customer facing ‘front-stage’ value (value propositions, relationships, channels and segments).

What is the Purpose of the Business Model Canvas?

BMC has three main purposes:

  • A BMC is useful for mapping existing business models to visualise and explain what currently happens. The approach can also be taken to map out competitors to have an understanding of the ‘current state’, differences, similarities and identify some opportunities.
  • Often, the BMC is used to design new business models. Whether, a company is a startup or established business, using the BMC for innovation is an effective method to find competitive advantage.
  • The BMC can also be used to manage an innovation portfolio or pipeline. Because of the ease of use and visual nature, many promising innovations can be explored during the startup and incubation phase using innovation approaches. Then, during exploration ideas are either ‘killed’ or moved on to be exploited in a growth and business management style.

The 9 Components of the Business Model Canvas

Business Model Canvas

The nine components best understood across the design thinking lens of Desirability, Feasibility and Viability.

Business Model Canvas - Desirability

1. customer segments.

This section describes who value is created for and who are our most important customers. For example, who is using the product or service, or whose problems are being resolved or needs satisfied.

The customer segment is the ‘customer profile’ from the Value Proposition Canvas . An organisation makes a conscious decision of which customer segment is most important to the business.

Also, customer segments are more than  demographics, they consist of common behaviours, needs and attributes. And, what ‘jobs’ they are trying to get done.

A customer segment could be described as broadly as mass market or more niche.

Remember to:

  • Create a segment for each distinct and important market. For example, if parents are the market, is it parents with pre-schoolers or empty-nesters. These segments will have very different value propositions.
  • If selling B2B then you are likely to need a few segments because you may need to understand and target different ‘customers’ in the same company. The ‘customers’ might include the decision-maker, the buyer, the salesperson, the influencer, the user / customer. Also, keep an eye out for any saboteurs.
  • Business models with intermediaries or double-sided markets will need segments and value propositions for both. For example, Air BnB has both home owners and travellers as customer segments.
  • The whole BMC is designed to deliver value to each customer segment in a profitable and scalable way that is relevant to the ‘jobs’ they are trying to get done.
  • The essential question is:  ‘who do you want to create value for and what job are you helping them get done’.

2. Value Propositions

Your Value Proposition describes how your products and services create value for the customer segments.

It is what attracts customers to you, or what fundamental jobs, pains and gains are being addressed?

Ultimately, value propositions are the bundle of products and services and is often why customers may choose business over another.

  • A value proposition is how you create value. It often isn’t the product. For example: a pair of headphones value proposition might be – reducing ambient sound.
  • A value proposition is needed for each customer different customer segment. 
  • Use the value proposition canvas for the detail, keeping the value propositions on the BMC high-level.

There are 12 common types of value propositions under the themes of functional, emotional and social :

  • Performance: creating value in the form of being faster or better than the competition.
  • Accessibility or democratisation: providing access to something that the customer previously didn’t have access to.
  • Customisation: Value creation in the form of personalisation of experience.
  • Usability: Providing convenience.
  • Affordability or cost reduction: Saving customers money.
  • Status: Helping customers to signal premium ownership or exclusivity.
  • Communication: Messaging uniqueness or other social signals.
  • Fashion: Looking trendy or modern.
  • Newness: Providing something that isn’t available elsewhere.
  • Price: Being the most inexpensive, while sufficient quality.
  • Design: The form and functions of the product.
  • Emotional state: Such as connection to  experiences or identity.

3. Channels

Channels describe the various means that you reach customer segments, such as:

  • Communication channels
  • Distribution channels
  • Sales channels

Examples might be directly through a website or a salesforce or indirectly (partners) through third-party stores or wholesalers.

The purpose of channels is to:

  • Raise awareness
  • Help customers to evaluate products and services
  • Provide a way for customers to purchase 
  • Deliver the value proposition
  • Provide ongoing customer service

The essential question is: ‘how do your customers want to be reached?’

Customer Journey peak end rule

4. Customer Relationships

This section details your relationship to support each customer segment.

The driver for the relationship follows one of these three themes:

  • Customer acquisition
  • Customer retention
  • Customer growth (upselling, cross-selling)

Relationships are on a spectrum within four themes. The four themes are:

  • Type. This means that relationships are either direct (customers only deal with you) or indirect (customers only deal with an intermediary).
  • Bond.  This means that the relationship is either long-term (hard for them to leave) or one-off/transactional (easy for them to leave).
  • Intimacy. This means   that the relationships are more personal (high touch) or more automated (low touch).
  • Life-cycle. This means that the relationship goes through a development from acquisition (how you get customers) to retention (how you keep customers) to cross-selling (how you earn more from customers).

There are several types of customer relationships:

  • Personal assistance: By interacting with the customer in-person, via email or personal phone calls.
  • Dedicated customer assistance: Such as an account manager for an individual customer.
  • Self-service: The ability for the customer to help themselves.
  • Automated: Automation to help the customer to help themselves.
  • Communities: Providing a platform for customers to solve their own problems. This is also a great option for customer research and testing.
  • Co-creation:  Customers participating in the creating of a product or service. Such as, lego providing a platform for fans to design new themes.

MUST READ – 9 Cognitive biases that stop innovation in its tracks

Business Model Canvas - Feasibility

5. key partners.

What network of partners and suppliers can be leveraged to make the business model work?

Partners are often strategic to provide a necessary capability that the business does not possess or to help scale the business.

And, they may often take the form of partnerships between competitors or non-competitors, joint ventures or buyer-supplier relationships.

Partnerships evolve to:

  • Optimise value chains: Producing a key part of the value chain that the company cannot produce itself.
  • Optimise economies of scale: Producing a key part of the value chain to gain the necessary cost advantages.
  • Reduce risk and uncertainty: protection from current or potential  competitors.
  • Acquire resources or activities: That you lack or are unable to perform. Such as knowledge, licences or access to customers.

Remember: no business exists in isolation. So, it is likely that you will need to develop a win/win partnership to be successful.

The essential question is: “what partners could help you maximise your business model.”

6. Key Resources

What critical resources do you need to make the business model work?

Resources are often, physical, financial, intellectual or human and are what is essential to support the delivery of  the value proposition, relationships and to reach customer segments.

Resources can be intangible or tangible and might include:

  • Intellectual property
  • Customer base
  • Website traffic
  • People are often essential, but not always critical. What are the critics resources that drive you business?
  • Challenge your assumptions on what the key that you need internally are. Can these be outsourced?

7. Key Activities

What are the essential activities that drive success for your business model? These are the things that you will need to be great at.

Activities will be different for different product types and may include:

  • Problem-solving (ie consulting)
  • Risk management (ie banking)
  • Production (ie computer manufacturing)
  • Net-working (ie credit card networks)
  • Customer relations
  • Get clarity on what activities you need to be great at delivering.
  • Stay high-level. You aren’t at the implementation phase and so granularity isn’t necessary.

MUST READ – The 3 levels of fit every business owner needs

Business Model Canvas - Viability

8. cost structure.

The cost structure is an outline of all the costs that will be incurred when executing the business.

Costs are either fixed (remain the same regardless of the volume produced) or variable (vary proportionally on the volume produced).

Costs will be different for a value driven business compared to a cost driven business.

The two types of cost structures are:

Value driven businesses:  Focus more on offering premium value rather than reducing costs.

Cost driven:  Focus more on creating a lean cost structure in conjunction with sufficient value. They will focus more on automation and efficiency.

Cost advantages are achieved through:

  • Economies of scale: (unit price becomes cheaper as volume increases)
  • Economies of scope: (same business model components applied to different products).

Remember to: understand your cost drivers  and whether your business should be value driven or cost driven.

Cost examples might include:

  • Manufacturing costs
  • Sales costs
  • Marketing costs
  • Research and development costs

9. Revenue Streams

Revenue streams describes how each segment will pay for the value that is delivered thereby ‘capturing value’.

They are either, one-off transactions (asset sale) or recurring such as monthly subscriptions (SaaS) and are an outcome of the choices made in the ‘font stage’ customer focused components.

Types of revenue streams are:

  • Assets sales (ie vehicle purchase) where you sell the rights of the product to the purchaser.
  • Rental fee (vehicle hire) where you allow exclusive rights to the customer for a period of time.
  • Usage fee (ie electricity supply) which charges the customer based on usage.
  • License fee (ie intellectual property usage – franchises) 
  • Advertising fee (ie google ads) charges the customer by allowing them to advertise on company  assets.
  • Subscription fee (ie access to online newsletters) charges the customer for regular, consistent usage.
  • Brokerage fee (ie mortgage brokers) is revenue that is generated by intermediaries.
  • Free (ie free use in the case of Google search)

Revenue can have different pricing mechanisms, such as:

  • Negotiation (ie vehicle sales)
  • Auction (ie competitive bidding on livestock)
  • Real-time (ie the stock exchange) which is good for high volume of transactions and a large customer supply.
  • Yield management (hotel bookings) which is good for perishable or limited goods.

Remember to: identify who is paying and what they are paying for. This avoids ‘orphan’ revenue streams.

How to Use the Business Model Canvas - 7 Step Guide

There are seven main steps to complete the BMC:

Step 1 – Zoom Out.

Ideally, best practice is to firstly research the environment that the business operates in.

There are four main areas to research – industry forces, market forces, macro-economic forces, key trends.

Industry forces:  research your competitors, potential competitors, what are the substitute products or services, stakeholders, value chain actors.

Consider things like:

  • Which players are dominant?
  • What are their competitive advantages?
  • Which segments do they target?
  • What are their value propositions?
  • How are they different?
  • What products or services could customers replace ours with?
  • How easy is it for customers to switch over?
  • How influential are certain stakeholders?

Market forces:  research market issues, segments, customer needs, switching costs and revenue attractiveness.

  • What is shifting in the landscape?
  • What are the most important segments?
  • What are the growth trends?
  • What are customers needs, pains and gains.
  • What will customers pay?

Key trends: research technology and regulatory rends, socio-economic, societal, cultural trends.

  • What technology changes are ocurring even in the extremes?
  • What are the pending regulatory changes?
  • What societal cultural  changes are happening or likely to happen?
  • What are the disposable incomes?

Macro-economic forces: research global market conditions, capital markets, resources and infrastructure.

  • Is the global economy booming or declining?
  • What is happening with unemployment?
  • What is the GDP growth rate?
  • What is the confidence in the market?
  • Is capital easy to access and not too costly?
  • Are commodities over-priced?
  • Can you access talent?
  • Are prices increasing?

The big idea here is to understand the environment that will influence the business and the resultant BMC strategy.

Step 2 – Zoom in – Create your ‘as is’ business model.

Then, working through the 9 components, map out how your current business model looks like using post-it notes.

The BMC can be completed in any order. However, I suggest to start the on the ‘front stage” by completing 1) customer segments, 2) value proposition, 3) customer relationships, 4) channels, 5) revenue streams.

Then, completing the ‘backstage’ components, 6) key partners, 7) key activities, 8) key resources, and 9) cost structure.

Some important things to keep in mind are to:

  • Keep the map high level by only documenting the ‘critical’ pieces.
  • Make sure there are clear and necessary linkages between the components and that each component supports the model and is not redundant.
  • If there are multiple segments, use different coloured post-it notes to see how the components connect to each segment. Alternatively, use different maps for each different segment.

Step 3 – Zoom in more.

Create your ‘as is’ value proposition canvas . Similar to the BMC, we need to understand the current state of the VPC.

Using post-it notes, map out the segments jobs, pains and gains, then the products and services that currently relieve pains and increase gains.

MUST READ – The Value Proposition Canvas: Ultimate Guide and Download

Step 4 – Use the Business Model Scorecard.

The business model scorecard is a set of seven key business model design factors.

The scorecard can be used to assess the competitive advantage of your business model, a competitors and any business model that is being explored.

Rate each factor on a scale of one (poor) to ten (excellent).

Business Model Factors:

  • Switching costs. Rating from ‘it is extremely easy to switch companies’ to ‘customers are locked in for the long-term’.
  • Recurring revenues. Rating from ‘all of my revenues are one-offs’ to ‘all of my revenues are recurring’.
  • Front-loading cashflow. Rating from ‘I incur all of my cost of goods sold before earning revenue’ to ‘I earn all of my revenue before incurring costs of goods sold’.
  • Competitive cost structure. Rating from ‘my costs structure is 30% or more higher than competitors’ to ‘my cost structure is 30% or more lower than my competitors’.
  • Leveraging people. Rating from ‘I incur all the costs for the value created in my business’ to ‘other external people create for free all the value in the business’.
  • Scaling Up. Rating from ‘it takes significant resources and effort to grow’ to ‘there is unlimited growth potential to my business’.
  • Guarded from competitors. Rating from ‘I’m vulnerable to competitors’ to ‘I have significant guards that competitors will find it difficult to overcome’.

Step 5 – Innovate your business model.

Taking into account what you have learned so far, are there any key insights that have emerged from the research and indicate potential opportunities or obstacles?

Then, use design thinking to innovate new business model ideas.

Design thinking is a a proven process for innovation and problem-solving and aligns perfectly with the desirability, feasibility and viability of a BMC.

There are several business model factors to explore. however, my starting point is often understanding customers needs and pain points (desirability).

Then, exploring ways to alleviate the pains and increase gains. To learn more about design thinking, I’ve written a comprehensive guide  here .

To explore the seven business model factors, try using trigger questions such as:

  • How might we increase scalability?
  • Or, how might we create more recurring revenue?
  • The objective here is to create many different business model ideas not just limiting to one idea.

As you are exploring the environment, consider opportunities like:

  • Can you draw inspiration from another business model even if it’s in another sector?
  • Can you create a new value proposition that is difficult to copy?
  • Can you gain competitive advantage by adopting new technology trends?
  • Are there under-served (or soon to be) markets?
  • Are there economic trends that are providing opportunities (such as rising living costs)?

As you are exploring your current business model, can you:

  • Design a new value proposition based on new partnerships?
  • Increase existing advantages that you have with resources and activities?
  • Reduce your cost structure?
  • Offer customers new value propositions with existing relationships and channels?
  • Increase your prices?
  • Give away core products to obtain high-vale add-ons or derive revenue from other sources like advertising?
  • Find a new customer job, pain or gain that would be game-changing?
  • Re-imagine a new product/service or bundle of that creates a gain or relieves a pain.

Step 6 – Experiment.

Starting with the model that indicates the most significant opportunity based off using the Business Model Scorecard, start testing all the hypotheses by running experiments for the most riskiest assumption.

The process follows three main steps:

  • What is your idea (BMC hypothesis).
  • What needs to be true for the idea to work? (riskiest assumption).
  • How can the assumption be tested?
  • Have any insights changed the assumption?

Common ways to test business models include:

Testing desirability. Try these methods to test customers interest in your business:

  • Run ‘fake ads’. These could be on social media, in newspapers, industry publications or printed flyers.
  • Create a landing page with a signup to register or to complete a survey

Testing a customers willingness and ability to pay. Try these methods:

  • ‘Fake’ sales by using a ‘buy now’ button on the landing page. Measuring the clicks confirms intent.
  • Pre-selling is another way to measure the actions people take. This method is common to obtain funds before building. If you don’t get enough funds, you can return the money.
  • Build a minimum viable product. An MVP is a smaller core product version.

Testing customers preferences and priorities.  Try these methods:

  • Split testing or A/B testing helps understand preferences between two options.
  • Have the customer order features under headings of ‘must have’ ‘could have, ‘would have’ and ‘deal breaker’.

Step 7 – Staying lean.

Traditional innovation was a lengthy and risky process of R&D, business planning, building a product and taking to market before getting real evidence of a customers interest in a product, willingness to pay, preferences and priorities.

The same applies to business models.

By making small, calculated risks to test and learn about every part of a business model is far more effective.

Remaining open to change, getting insight from experiments and failure is a sure-fire way to improve the odds of success.

As you learn more, you can increase the investment into more high-fidelity experiments.

Business Model Canvas Storytelling

There are several important elements that are effective for creating and telling the story of your business model canvas:

  • Stay high-level. Too much granularity will not help with shared understanding and clarity.
  • Use colour-coding to describe the story. This will help your teams to understand the connection and avoid any orphan content.
  • Create as-is and to-be business models.
  • Identify the known elements and those that are assumptions. Perhaps use colour coding for this too.
  • Separate significantly different ideas into different ‘prototype’ canvases.

Business Model Canvas Example - Netflix

Business Model Canvas

Business Model Canvas Example - Airbnb

business model canvas design

Airbnb’s business model is based on connecting travellers looking for unique and interesting places to stay and matching those needs with property owners that have spare space or complete homes for rent.

The underlying success of the business model is that Airbnb is avoiding the resource cost of the properties and therefore significantly reducing its cost structure.

Key points for double-sided platform business models.

Airbnb is using what is called a double-sided platform:

  • They provide a way for home owners to monetise their spare property by listing on the platform which has a large pool of travellers.
  • Travellers find a desirable place to stay and also become part of a community of Airbnb users. Although each property is potentially a different experience, trust has been established through the community and brand.

To  explore this type of resource diversion business model, here are some key points:

  • Identify your businesses / sectors most costly resources. Airbnb have avoided the most costly resources in the accommodation business, property, staff, vacancies.
  • Identify what potential resource owners might provide the required resources. Airbnb found that there are many property owners with spare rooms or complete properties that are under-utilised. And, for short-term stays it would be a hassle for individual property owners to manage the process.
  • Design an innovative VP for the partners that you need the resources from. By providing access to a large pool of travellers, home owners can make significant extra income.
  • Establish the new cost structure. Airbnb have found a lower cost model compared to traditional hotels because it does not pay property or staffing costs, while its overheads are mostly platform development, maintenance, marketing and promotion.

Benefits of the Business Model Canvas

There are several key benefits to the Business Model Canvas:

  • Clarity – The BMC provides a clear picture of either your current business model or the business model that you are innovating towards.
  • Communication – Having everyone on the same page is essential in any transformation or innovation process, and the BMC is an ideal way to communicate essential information to all stakeholders. Think of it as a living, one page business plan.
  • Collaboration – Now that your team have clarity and a standard communication tool, the BMC allows a unifying platform to collaborate on ideas. Ideas can easily be mapped and explored in a matter of minutes.
  • Risk reduction – Building a startup or innovating an existing business is risky. The BMC, helps to understand the risks and prioritise the riskiest factors to then approach validation in a logical way to minimise risk.
  • Proven innovation model – The Business Model Canvas has been around for about 20 years, and during that time, thousands of companies have used the BMC for innovation. The BMC has become a standard tool for innovation and strategy.
  • Customer-centric – It’s no surprise that the Value Proposition is in the centre of the canvas. When designing your BMC, also use the Value Proposition Canvas (VPC) to oscillate or zoom in and out between the BMC and the VPC. Doing so helps to continually evolve a BMC from within the lens of ‘creating value for the business’ and creating value for the customer’.
  • Simple, not simplistic – You don’t need an MBA to pick up the BMC and start to innovate. The critical approach is to make your business model visual, ideate, test and learn as you innovate and develop a business model with competitive advantage.
  • Speed – Given the simplicity and practicality of the BMC, many iterations can be made in a short space of time.
  • Design thinking  – The BMC is one of the best tools for leveraging the power of design thinking for innovation.

Are There Any Disadvantages of the Business Model Canvas?

No. Some people think that the BMC does not consider the environmental forces shaping a sector and, therefore, your business. Or, that it has limitations for start-ups.

While it is true that environmental forces are critical to consider, such as competitors, technology or legal changes, trends or macro-economic factors.

The forces are not part of your business model and, as such, is best understood through other strategy tools such as Porters 5 Forces or the Blue Ocean Strategy.

As far as limitations for start-ups, there may be a preference to use the Lean Canvas because some of the focus and terminology may be specifically tailored towards start-ups.

But, on the other hand, the BMC continues to be used effectively in the start-up phase of a business. 

And, if an existing company is exploring new business models and exploiting existing models, then my preference would be to use the consistency of the BMC.

The BMC is a proven innovation tool for both startups and existing businesses.

Business Model Canvas Innovation

Innovate your Business Model Canvas using the following approaches:

  • Create a blue ocean: Create an entirely new market opportunity with no competitors.
  • Meet unmet demand: Utilise customer research to understand their jobs, pains and gains that are currently not being met.
  • Improve the business model: Consider the value chain and what could be either brought in-house to improve margins and control tor outsourced to strengthen areas of weakness.
  • Bring something new to the market: something new such as, technology, products and services that provide better value to customers.

The challenge with innovation is that there are two distinct phases of operating:

  • Explore. The explore phase is about searching for new value and business models and requires. Uncertainty and risk is high which requires creativity, speed experimentation and adaptation. Leadership need to create a culture and capability to support innovation.
  • Exploit. During the exploit phase, uncertainty and risk is low and the business can focus on scaling and investing more into efficiency. Execution is more linear and requires leaders who are are strong in optimisation.

How to Operationalise the Business Model Canvas

Business Model Canvas Master

  • Download the Business Model Canvas.
  • Increase your teams capability. Ensure that the team have training in the purpose and use of the Business Model Canvas.
  • Clarify context. Understand the current state of the external forces and existing Business Model Canvas.
  • Design the Business Model Canvas.  Create Business Model Canvas options and test assumptions to select the best one.
  • Execute the Business Model Canvas. Once you have chosen a new Business Model Canvas, focus now shifts to execution.
  • Manage the Business Model Canvas. Your new Business Model Canvas needs to be continually evaluated and iterated to ensure it meets both the market demand and business demand.

Want More About the Business Model Canvas?

If, after going through the our 7-step guide on how to use the Business Model Canvas you’d like to learn more about business model tools and analysis, contact me here .

Regardless, I’d love to hear what you thought about this guide, Was it helpful? Would you like see more case examples analysed?

Let me know by clicking here .

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Business Model Canvas triple bottom line

Business model canvas.

The holy grail of design thinking tools..

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. 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.

business model canvas design

11 building blocks.

1. Customer segments . List  your most important (future)  segments. Look for the segments that provide the most revenue.

2. Value proposition . W hat are your products and services? What is the job you get done for your customer?

3. Revenue streams . List your top three revenue streams. If you do things for free, add them here too.

4 .  Societal and environmental benefits.

What are you giving back to your community and planet? 

5 . Channels . How do you communicate with your customer? How do you deliver the value proposition?

6 . Customer relationships . How does this show up and how do you maintain the relationship?

7 . Key activities . What do you do every day to run your business model?

8 . Key resources . The people, knowledge, means, and money you need to run your business.

9 . Key partners . List the partners that you can’t do business without (not suppliers).

10 . Cost structure . List your top costs by looking at activities and resources.

11. Societal and environmental costs.

What’s the negative impact of your business model?  

Your step-by-step guide.

Before you start..

You can learn a lot from your competition. Choose some competitors and map their business models. Armed with this information you’ll have deep insight into what customers want and what they are willing to pay for. You’ll have a clearer picture of just how customers’ needs are met across the entire industry, not just in your company. And, you’ll uncover vital information about how other businesses, maybe even very successful businesses, have created their own spaces in the market.

Get the right team of 3-5 people together.

Grab a large chunk of wall space.

Print or draw the canvas on a big sheet of paper.

Have plenty of sticky notes and markers ready.

Allow yourself 45-60 minutes of undisturbed time.

1. High level.

Start by mapping out the business on a high level: only the most important, vital aspects of the business model.

2. Connect the building blocks.

Link up the building blocks: every value proposition needs a customer segment and a revenue stream! When everything is on the board, take a step back. Have a short break. Did you miss anything? Forget something?

Pro tip: if you have multiple customer segments it is best to pick a colour for each segment in the post-it notes you use. That way you easily see if for each segment there is a value proposition and a revenue stream.

3. Current state.

Don’t mix ideas for a future state with what is going on right now, and don’t mix different departments!

Pro tip: if you work for a large organization you might find varying value propositions and business models. In that case ask the different departments to map out their own business models. You can compare them afterwards.

Take a step back check if every customer segment is linked to a value proposition and a revenue stream. Make sure everything on the left side of the canvas is needed to support the right side of the canvas. Everything else can go.

Rank your business model’s performance (0: bad, 10: excellent) for each of the following questions:

How much does switching costs prevent your customers from churning?

How scalable is your business model?

Does your business model produce recurring revenues?

Do you earn before you spend?

H ow much of the work can be done by others?

Does your business model provide built-in protection from competition?

On what cost structure is your business model based?

5. Next steps.

Pro tip: have an artist visualize your business model. It helps to create impact when sharing the model and it makes it easier for others to become connected. Checklist :

Take a snapshot picture of your business model canvas for easy to share future reference .

Ask team-members discuss the business model with others .

Trigger team-members to actively look for 1-2 blind spots .

Filter out the design criteria .

Test your assumptions .

Need some extra brainpower for your business model canvas?

Meet stefan. he is your expert..

Stefan Buijsingh

quora

Business Model Canvas Examples

Kyrylo Iusov, Advisor & Co-founder

CPO in Jelvix with 8+ years in software development. He has been working as a project manager for more than 6 years. Kirill has managed a wide range of projects from various business segments and understands the processes that will drive the product to success. He started from managing small teams, and now he assembles an expert team of more than 40 software developers. His expertise and knowledge of the latest technical innovations have brought Jelvix to the ranks of the most distinguished custom software development companies.

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Over the last decade, the approach to planning and organizing a business changed a lot. In the past, business owners created extensive business plans that described the detailed specifics of value proposition and operations. Business plans aimed to foresee the situation in the scale of decades. 

However, the ever-changing startup climate that emerged over the last decade made this approach irrelevant. Spending time preparing business plans that end up being detached from reality led to increased expenses. After all, no matter how good your business plan is, it might not account for a global pandemic. 

What’s a Business Canvas?

Business canvas, also known as a lean business plan , is a time-saving approach to business planning, opposed to traditional planning methods. Rather than describing the detailed vision , mission , operations, it answers key questions – and the team derives the conclusion from this answer.

Business model canvas is more attainable than a business plan. Instead of describing the abstract vision, the document focuses on answering the following questions: 

  • What is the product/service?
  • What is the main value offered to a customer by a company’s product or service?
  • How much does it cost to start a business? What’s a brief estimate of major expenses?
  • What are your business key partners?
  • Who are the main customers? Business canvas can consider both primary and secondary target audiences . 
  • What are the main distribution channels and approaches to managing them?
  • The Format of Business Model Canvas Explained

The main advantage of switching from plain-text plans to visual canvas is its readability. Here’s a rundown of differences compared to the traditional approach. 

  • The document volume: just one page versus old-fashioned 20-30-page documents;
  • Clear structure: each section of a business model canvas is located within its “square”;
  • Fewer words, more meaning: the more concise canvas is, the better it’ll convey its key points;
  • The style: no sales talk on technical jargon, canvas describes the business model in everyday language;
  • Focus on practical matters: business model canvas features useful answers to urgent questions. No information is entered “just in case.”

The Structure of Business Model Canvas

The structure of Canvas

Business model canvas is easy to read because it always follows the same format. Investors, stakeholders, partners get used to seeing particular information where it belongs – so that everyone is literally on the same page.

  • Sections always follow a precise order. For example, the cost structure is always in the left bottom part together with revenue streams.
  • All sections are distributed based on their meaning. Key partners, activities, and resources are located together – because these aspects are closely related. Similarly, cost structure and revenue streams belong in the same row. 
  • More opportunities for branding. Since canvas encourages visual representations, businesses can show their tone of voice and approach clearer. Sure, there’s a format to follow, but deviations are possible in the tone of voice, fonts , narration style. 

Categories that are located on the left side of the canvas are the ones that require investments and nurturing. The aspects described on the right side refer to means of generating revenue. This is called a left/right split of the business canvas. 

This article will give a practical guide on how to describe business concept examples and analyze real-life business models. With a business model canvas, the entire team will have one-page guidance on developing a business model . 

  • Customer Segments

To define customer segments, you need to analyze your clients by demographic and behavioral characteristics. There are many ways of defining user performance and performing customer analysis, but here are few ideas. 

  • Basic demographic characteristics . Split your customers into segments by gender, age, location, occupation. These qualities will influence their behavior later on and allow you to perform basic targeting. 
  • B2B vs B2C segmentation . Often, businesses tend to gravitate to one or the other, but business models combine both. For instance, if you are building a booking or tourism-related platform, you interact with businesses and individuals. These users will have different needs and challenges.
  • Usage habits . Software development companies focus on types of devices, operating systems, browsers that users normally use. 
  • Purchasing trends . You can segment users by their favorite product categories, time of making a purchase, frequency, etc. 

Business canvas is supposed to be brief – so the best strategy is to choose 4-5 leading segments and focus on them. These should be the user types that have the potential of generating the most revenue for your business. 

  • Key Partnerships

Business canvas focuses on tangible aspects of business operations, and partnerships are among its key pillars. For this section, listing all partners is unnecessary. If you don’t have specific names in mind yet, you can list the types of partnerships and briefly describe strategies for attracting them. 

As a software development company, our clients and we typically consider the following key resources in the business model canvas . 

  • Suppliers : e-commerce stores, marketplaces, delivery applications rely on businesses that can steadily supply high-quality products. In your business canvas, list requirements for a supplier. 
  • Technical collaboration : to build the best product, development companies often need to cooperate with others. This section can feature commercial APIs , payment gateway partnerships, cooperation with development teams and agencies, and outsourcing providers. These businesses are also key partners of your business.
  • Cooperation with competitors : if there’s a strong player on the market, smaller businesses often team up to gain visibility. If you are entering an established field, consider looking for smaller competitors and making them a partnership offer. 

The focus on partnerships is one of the main advantages of business canvas over other methods. Too often, businesses don’t think about cooperation out-of-the-box and miss out on opportunities. When you build a business canvas, its structure motivates your team to consider these options. 

  • Key Activities

The operating model canvas describes your company and product’s processes to solve its target problems. For instance, for Uber, the key activity would be connecting drivers to clients and overseeing the safety of cooperation. Key activities tend to vary as the company scales, so most businesses frequently update this business model canvas section.  

The key activities of most IT businesses

  • Product ideation and development. The main value of a tech company lies in its product. Design , development , and testing are key activities that directly influence business success. 
  • Marketing. To reach new users and keep the existing ones satisfied, you need to plan marketing activities. This includes digital marketing and its components – Search Engine Optimization, content management, social media management. 
  • Sales. Sales activities allow companies to continually generate revenue, communicate with clients, and stay in touch with direct customer needs. Pre-sale and sale processes should be listed as one of the key activities in the canvas. 
  • Customer support. If the product is not working properly, or a user can’t understand the interface or functionality, customer support should promptly intervene. For an IT business, focusing on customer support quality is crucial for maintaining a good reputation. For instance, Google Cloud’s lack of customer support is what drives many away from embracing an otherwise great solution. 
  • Distribution and logistics. For businesses that deal with e-commerce and sell physical goods, distribution and logistics are key business model activities. Business model canvas should have information on responsible team members, costs, and requirements for the distribution cycles. 
  • Public relations. If a business is built around a community, communication and community management are key business activities. For NGOs and educational services, public relations are particularly important. 

The list of key activities is a defining feature of the business model. When you understand what operations are the most crucial for your business, you have a better idea of the end value. The key activities define your unique value proposition, operation costs, risks, and partnerships. This is why it’s the most important section in the entire strategy canvas template . 

Learn more about the main stages of product development lifecycle to build a sustainable product.

  • Revenue Streams

Revenue streams

Revenue streams also referred to as monetization, sum up your business strategies to leverage profit. A lot of businesses choose a single monetization strategy, while some combine multiple approaches. As a software development company, we can sum up the most common revenue streams for software businesses and tech-based models. 

Advertising . Users use the application for free; however, some of their personal data might be used for advertising targeting. The application offers the time and attention of their users to businesses – and gets paid a commission. It’s a great business model for attracting more users, as the service remains free.

However, to generate a lot of profit, it’s essential to have many users on the service. Advertising strategy, among others, is used by Facebook, Twitter, Youtube, Google, and others. It’s a common one for mobile applications and games. 

Subscriptions . To use a service, a user needs to pay every month, week, or year. It’s a common model for software-as-a-service, media platforms, learning services, online publishing, and entertainment. On-demand content providers like Spotify or Netflix use this business model with premium-level publishers like Quartz or The New Yorker. 

Affiliate Marketing . The platform gets revenue for referring users to other products. By tracking visits and purchases with on-page pixels and promo codes, affiliate systems calculate your revenue.

Affiliate marketing is frequently used among influencers (like when a sponsoring brand gives a Youtuber a promo code) and blogs (when a niche blog publishes a list of best tools to use or collects the best Amazon listings). Affiliate marketing can be beneficial both to users, referring platforms, and your partners – if recommendations correspond to your users’ needs. 

Donations from users . If you’d like to keep offering your service to the public for free without selling away user data, donations are another option. PayPal provides a donation getaway that can be embedded on the blog, application, or web service.

This strategy is common for businesses with a strong social mission and requires high user loyalty. Such business canvas examples include Wikipedia , The Guardian , and Khan Academy (the education platform that recently received a 5 million dollar donation from Elon Musk). 

Freemium . This business model offers basic features for free and provides updates on a paid subscription. It’s common among SaaS and publishing businesses. Use examples include Medium (users have a certain number of free stories every month) and Grammarly , where a free version recommends basic corrections. 

Commissions . Fee-based monetization is common for marketplaces, APIs, payment gateways. The use of service is typically free, but the intermediary withdraws a fee once a transaction is made. The commission can be fixed regardless of the purchase amount or depending on the percentage. This business model is used by Uber , Amazon , BlaBlaCar , and other services. 

  • Value Proposition

The Value Proposition is a concise sentence or, at best, paragraph that summarizes your company’s offer. It depicts users’ problems and ways to solve them. Let’s take a look at real value proposition canvas templates to make things more transparent. 

  • Slack’s value proposition is summarized in their slogan – be less busy. The full version is more specific: Slack is where teams can collaborate, send important information to the right people, and find tools when and where users need them. Still, the three-word slogan reflects the gist of it pretty well – after all, the purpose of Slack merely is making users less busy.
  • Paypal has two sets of value propositions – one for buyers and one for sellers. The sellers-focused version promises convenience, low cost, and security. Online stores can be sure that the payment will go through on any browser, with a low commission, and user data won’t be compromised. For buyers, the value proposition is focused on convenience, flexibility, and security. It takes little time to make a payment, it can be done from any device and browser, and all data is safe. 
  • Amazon is a super-aggregator of vendors and buyers, where buyers can find whatever they need at a given moment, and sellers can reach large audiences. The company’s value proposition is based on the platform’s functionality and popular community.
  • Distribution Channels

At this point, you can answer two major questions: what is your value, and who needs it. However, the picture is incomplete without knowing how the value will be delivered to customers. Answering this question is the responsibility of the “Distribution channels” sections. 

To plan channels in the business model canvas , we recommend getting acquainted with the buyer’s journey. In a nutshell, it consists of three stages: 

  • Awareness : the customer is aware of the problem but doesn’t yet know how to solve it. He’s not considering any particular help so far. It’s an exploratory stage. 
  • Consideration : the customer is aware of the importance of the problem and is ready to consider looking for help. At this point, the user is exploring multiple options, comparing pricing, advantages, reviews. 
  • Decision : the client spent a lot of time exploring the market and is ready to commit to the final option. At this point, all a customer needs is the last push that will fully persuade towards making a purchase. 

Distribution channels

A company should have distribution channels for all three stages of the buyer’s journey. It’s achieved with focused content marketing, Search Engine Optimization, email marketing, social media management. Here are some of our distribution channels – just to give you an idea.

Distribution channels in a business canvas example 

  • Company’s blog : Jelvix has a blog with in-depth guides like this for users in the awareness and consideration stage. Users get to know their problem better and move to the consideration stage. 
  • Newsletter : once a user considers our blog useful, the next option is to subscribe to our newsletter. This is where we inform about new content, special offers, additional materials (like free e-books or whitepapers).
  • Case studies . When users are deciding on partnering with the Jelvix team, they usually take a look at our case studies. Often, they reach out to us directly – and this is where the sales team comes in. 
  • Youtube channel . Often, clients in the awareness stage come to us from Youtube. They want to see an explanatory video that answers their questions – and this is how they come across our content. 

Distribution methods require a lot of investment at the early stages, but ultimately, they keep your business running in the long run. 

  • Key Resources

To execute plans outlined in the canvas, you need resources. For tech companies, this involves development, design, testing teams, HR specialists, security experts. Other things to consider are server costs, maintenance fees, API costs, office space, hardware, software (development environment, automation scripts, management tools). 

The business canvas should distinguish between already available resources and those that still require investments. To avoid leaving anything out, we recommend grouping resources into human, financial, intellectual, technical, and physical ones. 

  • Physical resources : office space, furniture, computers all fall in the realm of physical resources. 
  • Intellectual resources : if you need to acquire educational resources, patents, copyrights, creative licenses, these will be expenses on intellectual needs. 
  • Technical resources : we could consider those as an extension to intellectual resources, for tech companies, this category is one of the most relevant one – and it deserves own spot. Such resources include hardware for testing, development environments, emulators, additional tools, APIs, server cost, maintenance fees, etc. 
  • Human resources : development, design, testing teams, marketing specialists, sales and customer support department, legal and HR teams – everyone involved in your direct business operations falls into this category. These resources don’t have to be limited to the in-house team – you can include freelancers and contractors. 
  • Financial resources describe funds that the company already has and strategies for obtaining those in the future. You can plan out investments, loans, crowd-funding campaigns, strategic customers, and others in this category.
  • Customer Relation Strategy

To plan a business model canvas for customer relationships , you already need to understand the specifics of your target audience, value proposition, main activities, and available resources in sales, support, and marketing departments (all this was described in other sections). So, in this section, we suggest focusing on building and maintaining a customer relation strategy. 

  • First contact: what are the ways for your users to contact the company. The most common ones are on-site forms, email communication, phone calls, and Skype meetings. Which contact data is public to users, and what has to be obtained after direct contact? Specify these requirements. 
  • Pre-sale process . Canvas should describe the value that your customer receives on the pre-sale stage. In software development, it’s often done during the discovery session. A development team offers a free analysis of a business model and provides estimates. 
  • Sales meetings . Describe who’s responsible for converting qualified leads into sales. What are the channels of communication (Skype, Zoom, phone calls, in-person meetings, negotiation)? Establish the duration of such a cycle. 
  • Finalization . When is the sale process considered finalized? What are the documents that parties need to sign for sale to go through? What data does a customer relations team need to finish the process?
  • Communication . Keeping in touch with existing clients is as important as attracting new ones. What are the ways to stimulate the next purchases? This is where you can describe special offers, bonuses, loyalty programs. 

The customer relationship section usually describes programs for maintaining and attracting clients, communication strategies, and technical resources (software, browser extensions, social media).

Name of video

  • Cost Structure

The allocation of resources depends on your field and business model. As a tech company, we can give you an idea of an approximate cost structure for tech startups.

Statistics show that 10-20% are spent on development, whereas the most are invested in testing. Marketing tends to take up around 15-25% of the budget for new businesses and around 5-10% for established companies. 

Costs can be fixed and variable. In the cost structure business model canvas , define which expenses will be constant and require constant revision.

 types of cost

Main types of cost to consider

  • Operational costs : how much do you need to keep your product running? This includes testing, development, server costs. 
  • Marketing costs : how much do you pay for one client? What is your average promotion budget?
  • Support costs : how much do you pay support teams?
  • Overhead costs : these are costs that don’t impact the product quality directly but can’t be ignored – electricity bills, installation time, delays from human resources. 
  • Staff costs : investments into recruiting, hiring, training employees, and financing additional programs and bonuses. 

For tech companies, R&D departments are the main focus. Sales and marketing are the second priority – however, the business’s success still mainly depends on product quality.

Business Model Canvas Samples

canvas model

Let’s take a look at lean canvas examples for successful companies. There aren’t official versions – such documents are usually not published. The purpose of these examples is to give you an idea of how such businesses could formulate their lean canvas examples . 

Business model canvas - slack

To understand the key aspects of your business model in a few days, you can create a business canvas. It’s an efficient one-page representation of your unique proposition value, key activities, customers, distribution channels, cost structure, revenue sources, and other aspects. Unlike traditional business plans, it doesn’t give irrelevant details – the focus is on the pillars of the business. 

The business model canvas for tech companies has its structure and rules. From audience to cost allocation, the business climate of tech startups is different from traditional businesses. If you’d like to create a canvas for your concept, don’t hesitate to contact our team . We are happy to help you ideate the solution and bring our development team on board – to make the concept into a ready product. 

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10 Free Business Model Canvas Templates in Word and ClickUp

Haillie Parker

February 13, 2024

The foundation of a successful business is an effective business model—your organization won’t be able to get off the ground without one!

At the same time, creating your business model is no walk in the park, and you’ll likely need to lean on some or all of your resources in the development process. One of the most accessible and time-saving resources in this area is a business model canvas template, and if you don’t have one yet or are seeking a new one, you’ve come to the right place!

Follow along as we dive into the top FAQs, benefits, and features of the best business model canvas templates and 10 downloadable examples for any type of business.

What is a Business Model Canvas Template?

Elements of a business model canvas template, 1. business model canvas template by clickup, 2. startup business model canvas template by clickup, 3. lean canvas template by clickup, 4. business planning template by clickup, 5. business planning document template by clickup, 6. lean business plan template by clickup, 7. business ideation template by clickup, 8. clickup business brainstorming template, 9. business model canvas template for microsoft word, 10. blank business model canvas template for microsoft word.

Business model canvas templates are pre-built and customizable tools to outline and visualize your business model on a single page. These documents quickly define your company’s unique value proposition , target audience, revenue, cost, resources, key partnerships, and more.

Without a template, developing your business model canvas can be a lengthy and difficult process. Plus, business model canvas templates reduce the margin for error and ensure you’re thinking strategically, working efficiently, and meeting your stakeholder’s expectations.

Business model canvas templates are also great resources to share with the entire team and keep everyone aligned on your organization’s long-term goals.

There are tons of simple, accessible, and free business model canvas templates available for virtually every business management software —but not all templates are created equally! Here are five must-have features to look for before downloading:

  • Multiple views to customize the structure of your business model plan and how you visualize it
  • Collaboration features to involve the team, stakeholders, and other departments
  • Ease of use and simplicity to ensure you’re using the template correctly
  • Flexibility to accommodate different company sizes, industries, and business models
  • Multiple integrations to bring context and information from other work tools into your template

10 Business Model Canvas Templates

Searching for the perfect business model canvas template can be an overwhelming process.

Instead of fishing through pages of links or resorting to the trial-and-error method, start here with 10 of the best business model canvas templates for ClickUp and Microsoft. 

Business Model Canvas Template by ClickUp

The Business Model Canvas Template by ClickUp empowers teams to create new business models with ease on a collaborative Whiteboard . The template starts with nine main color-coded segments to structure your business model canvas:

  • Key Partners
  • Key Activities
  • Value Proposition
  • Customer Relationships
  • Customer Segments
  • Key Resources
  • Cost Structure
  • Revenue Stream

Defining these segments will help you develop every element of your business model and give your organization the foundation to thrive. This template also prompts you to indicate the company you’re creating the business model for, along with the designer involved and the date of creation. You can also specify the version name and number if you plan on creating multiple iterations of a business model using this template. And since ClickUp Whiteboards provide an infinite canvas, you’ll never run out of space developing your ideas.

Startup Canvas Whiteboard Template by ClickUp

Startups have unique planning requirements and need a tool that can build a solid foothold for the new company. The Startup Canvas Whiteboard Template by ClickUp was designed with this in mind, and why ClickUp itself is one of the best tools for startups in the planning phase. 

This template includes everything you need to gauge the feasibility of your startup business based on various parameters. The template includes 13 segments that cover nearly every aspect of your startup to help you fully realize your vision for the business. Easily name your organization’s key partners, the problem your business or product will solve, your target market, objectives, equipment costs, the key factor to your success, and more. 

This beginner-friendly Whiteboard template allows you to create a concise summary of your business, what you want to achieve with it, and how you can succeed. It can also serve as a skeletal roadmap for a more comprehensive business plan as your company grows.

Lean Canvas Template by ClickUp

The Lean Canvas Template by ClickUp helps business leaders identify the most crucial and dangerous assumptions in their organization. It’s especially helpful when launching a new product or service, as it presents all ideas and potential problems in an organized, easy-to-understand list. Another great resource for startups, this template isn’t just for the planning phase—you can use it multiple times to organize any area of your business throughout its lifecycle.

A little different than the Whiteboard diagrams we saw above, this template applies a pre-made List to your Workspace with three five views including ClickUp’s unique Form view , Kanban-like Board view , and Table view . Using these views, managers can choose how they visualize the issues at hand and can categorize them based on factors like customer segment, cost, metrics, channels, and more.

In this template, you’ll also find a detailed Getting Started Guide ClickUp Doc to support your setup process, three custom statuses, and eight Custom Fields to access key information quickly and directly from your tasks.

If you’re starting a new business idea, the Business Planning Template by ClickUp will help you develop a thorough business plan that leaves no areas overlooked. This details all tasks you and the team must complete and keep everything organized on a clear timeline .

This template will immediately prompt you to plug in your organization’s information, deadlines, and projects into ready-made tasks arranged on an interactive list, Kanban board, or table. With four custom statuses and three Custom Fields to add references, approvals, and sections to each task, this template is somewhat simpler to learn than the previous one but includes a comprehensive Business Plan ClickUp Doc to built-out your strategy.  

Ready to learn more about business strategy? Use this template along with another strategic planning template to ensure you’re taking the proper course of action.

Business Plan Doc Template by ClickUp

If you’re not ready to put your business model plans into action, start with the Business Planning Document Template by ClickUp to fully outline and visualize your business strategy. What’s unique about this template is that it’s specifically and only for ClickUp Docs. And while it’s intuitive to learn and start using quickly, it’s by no means a simple one-pager !

The formatted Doc guides you from the top down. Starting with your company name, overview, background, and team, you’ll soon be prompted to define key metrics and research including:

  • Your marketing analysis
  • Sales and marketing strategy
  • Operational strategy

And more! Plus, you can link tasks directly in your Business Plan Doc and turn any text into an action item, helping you act on new ideas the moment they come up. And with an automatically saved version history, collaborative live editing, and assigned comments, your Doc will remain updated and act as a referrable source of truth throughout the development of your business proposal and model.

Lean Business Plan Template by ClickUp

For something a bit less extensive than our other business plan and Whiteboard templates, you can make the most of your resources with this Lean Business Plan Template by ClickUp . 

In this template, you’ll have access to multiple views depending on your preferred layout including a dynamic List, a pre-built Kanban board, and multiple Help Docs . Within each view, you’ll find convenient sections for all of your key information including your plan summary, business model canvas, prioritized tasks, or notes.

In your plan summary, you can categorize your tasks by five different custom statuses, add multiple assignees for cross-functional teams , set deadlines, attach Docs, and more. This template will establish the bare bones of a business plan as you and your team get things done, working toward your business goals.

Business Ideation Template by ClickUp

Need the perfect tool to practice and develop your ideation techniques ? Apply the Business Ideation Template by ClickUp to start mapping out new concepts. It’s also a great resource to have on hand during group discussions or brainstorming sessions . 

The template presents users with an Ideation Diagram that includes different segments to help categorize and organize ideas. You can jot down all ideas based on whether they’re process, product, or people-oriented. The legend indicates each category, and the Pool of Ideas segment will allow you and others to add certain general ideas that you can categorize later.

The entire diagram is highly visual and organized using ClickUp’s digital whiteboard software to capture and develop ideas the moment you have them.

Business Brainstorming Template by ClickUp

Especially if you rely on ClickUp as brainstorming software , the Business Brainstorming Template by ClickUp will help you nurture new ideas. 

This template allows you to categorize ideas based on:

  • What you love
  • What you know
  • What people need
  • What people will pay for 

Include multiple people on your Whiteboard diagram and use collaborative detection to see viewing your work and edit alongside each other without overlap.

This unique visual aid will make everyone feel like they’re actively contributing to discussions and brainstorming sessions, even if you work asynchronously. You can also take this template a step further and use your completed diagram to prioritize newer ideas and determine what’s worth exploring further.

Business Model Canvas Template for Word

Another option to help develop your business model is the Microsoft Word Business Model Canvas Template. It’s similar to ClickUp’s business model canvas templates and allows for simple organization of the various facets of your company.

Using this basic template, you can establish multiple key details about your business model including key partners and suppliers, your value proposition, and relationships. Identify the channels you’ll need to use to reach your customers, along with the resources required for each activity. In addition, you can add information about revenue streams and cost structure.

This tool is free to download and allows for instant use through Microsoft Word. If simplicity is something you’re looking for from your business model canvas template, this is a good place to start.

Business Model Canvas Word Template

Looking for a different Word template to build your next business plan? This Blank Business Model Canvas Template is a little more complex and flexible than the previous document—it’s also free to download!

This template gives you and members of your team a centralized view of your business model, keeping everyone on the same page, literally and figuratively. It takes the segments from the template above and presents them in a diagram format. You can view all key partners, activities, and more in organized sections and add details in the form of sticky notes. Choose from different formatting options, including colors, fonts, and arrangements to optimize how you present your data.

Find the right business model canvas template for your team

Choosing the right business model template is essential for developing a successful plan that aligns with your business goals and objectives. With a variety of options available, it can be overwhelming to find the ideal template that fits your specific requirements.

ClickUp’s extensive Template Library offers a range of customizable templates to streamline your business planning process and achieve your goals. Plus, you can access any template, hundreds of productivity features , and over 1,000 integrations for free when you sign up for ClickUp today .

Questions? Comments? Visit our Help Center for support.

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Business model canvas.

Developed by Alexander Osterwalder, the Business Model Canvas is a framework that helps business modelers, strategists, entrepreneurs as well as managers determine how a business creates, delivers and captures values. The Business Model Canvas framework is a visual representation of the important aspects or parts to consider when designing a Business Model.

Quick details: Business Model Canvas

Structure: Structured

Preparation: Business idea, Participant recruitment, Workshop setup

Deliverables: Business model canvas

More about Business Model Canvas

The business model canvas is more of a framework than a design method. This framework guides efforts in two ways:

  • One can develop prototype models for the business and test to check whether the business actually creates, delivers and captures value as intended.
  • One can understand, design and collaboratively innovate the business concept with all the stakeholders.

Business Model Canvas framework

The Business Model Canvas framework is a visual representation of the important aspects or parts to consider when designing a Business Model, these are

Customer segments

There may be several distinct groups of individuals or organizations that a business aims to reach, serve and create value for.

Value proposition

The value that the business creates for the customer segments including the products and services that deliver that value.

The means and ways through which a business reaches its customer segments to deliver its value proposition.

Customer Relationships

The nature of relationships that a business needs to establish with its customer segments.

Revenue streams

The sources through which the money flows into the business.

Cost structure

The costs incurred by a business to run.

Key resources

The physical, financial, intellectual and human assets or resources required by a business to run.

Key activities

The most important things that a business must do to run and create value.

Key partners

The network of suppliers, distributors or other types of partners who will support in running the business and creating value.

Mapping the above mentioned aspects together helps one understand and innovate around each aspect as well as figure out how each aspect interacts with another.

Starting a new enterprise or evaluating the business model of an existing one can start with the modeling team to identify or validate the gaps in the market or need of specific customer segments to deduce the value proposition of the business. The team can then further evaluate the various products and services available in the market intended to fill the gaps or address the needs of the customer segments under consideration. This exercise also involves understanding the context of different customer segments and either contextualizing an existing value proposition or creating a new value proposition entirely. Similarly, other elements of the Business Model Canvas are discussed and defined to arrive at different business model prototypes. These prototypes are then tested and validated with perceived target segments by employing design research methods such as surveys, interviews or focus groups. After the evaluation and validation of the different prototypes, one or at the most two best-fit models are picked to create a business plan. The plan represents a roadmap to implement the business concept, together with the identified key partners and resources within a stipulated timeline.

Advantages of Business Model Canvas

1. collaborative.

Business Model Canvas is a collaborative framework, which helps bringing the different partners and business owners in sync. The quality and number of ideas getting generated are also high.

2. Framework to think through and test

This framework allows business owners, strategists and managers think through business ideas as well as test concepts which would otherwise get tested with potential customers before big bucks get invested.

3. Human centered

Business Model Canvas is human centered and user/customer centered as the key customer segments, key relationships, key activities, value proposition are all elements that focus on creating, delivering and capturing value for customer segments.

4. Rich Data Collection

Depending on the kind of team that ideates and innovates using the Business Model Canvas, the process facilitates collection of rich data.

5. Time & cost effective

As the Business Model Canvas helps ideate, innovate and test concepts before investing big bucks into an actual business that may or may not work – it saves both time and money for business owners as well as allows them to choose a business model which has a higher chance of success.

Disadvantages of Business Model Canvas

1. experienced researcher.

Facilitating ideation and innovation is not for a novice researcher, but can be accomplished by an experienced and strategic researcher .

2. Unclear Vision

If the team involved in developing the business model isn’t strategic or doesn’t have clear goals or vision for the business, then the canvas development could be a time consuming activity which may not give insightful findings at the end .

Think Design's recommendation

Business Model Canvas is a powerful tool that defines your business during foundational stages. It can also be used when we want to relook at our business to improve or transform it. This is a very involving and time-consuming exercise that needs undivided attention of decision makers (usually the founding or foundational teams).

This should be treated as a semi-structured brainstorming/ workshop session and not a formalized board room meeting, in order to achieve the best outcome. You do not want the Business Model Canvas to give you an outcome you will not use or something that is too obvious; use this to innovate/ reinvent your business model creatively.

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  • Task Analysis
  • Visit Survey

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Berikut Cara Membuat Business Model Canvas dengan Mudah!

Bagi pebisnis, mengetahui bagaimana cara membuat Business Model Canvas yang tepat bisa membantu mereka dalam merancang berbagai rencana untuk bisnis di masa mendatang. Business Model Canvas atau yang disebut BMC ini menjadi aspek yang sangat penting dan harus dimiliki setiap perusahaan, sehingga lebih siap dan matang saat menjalankan operasional bisnis tersebut.

Business Model Canvas pertama kali diciptakan pada tahun 2005 oleh seorang entrepreneur dari Swiss bernama Alexander Osterwalder. Secara sederhana, BMC adalah sebuah kerangka yang memudahkan Anda dalam melihat gambaran ide bisnis sekaligus realisasinya dengan lebih cepat. Dengan begitu, Anda juga bisa lebih cepat dalam membuat keputusan terkait apakah ide bisnis tersebut akan dilanjutkan atau tidak.

9 Elemen Dalam Business Model Canvas

BMC melibatkan 9 elemen yang memiliki peran masing-masing. Dengan begitu, Anda bisa mengevaluasinya berdasarkan poin-poin yang ada di dalam canvas bisnis tersebut. Agar susunan rencana bisnis Anda bisa berjalan lancar, inilah 9 elemen yang digunakan berikut penjelasannya.

  • Segmentasi Konsumen Di dalam BMC, sangat penting menentukan terlebih dahulu siapa pelanggan yang paling berpotensi untuk membeli produk yang Anda tawarkan. Tanpa menentukan konsumen yang jelas, maka besar kemungkinan produk tersebut tidak akan laku di pasaran. Misalnya, Business Model Canvas untuk toko perlengkapan olahraga, maka pelanggan yang paling potensial adalah mereka yang gemar melakukan olahraga. Baik itu anak-anak usia sekolah, mahasiswa, atlet hingga masyarakat umum. 
  • Proposisi Nilai Konsumen Setelah mengetahui siapa pelanggan yang potensial, selanjutnya tentukan alasan Anda mengapa perlu membuat produk tersebut serta apa manfaatnya bagi pelanggan. Inilah yang dinamakan proposisi nilai konsumen, yaitu nilai yang berikan kepada para pelanggan yang menggunakan produk Anda. Dalam BMC, elemen ini juga bisa menjadi solusi yang mungkin dihadapi oleh pelanggan. Baik itu berupa solusi yang belum ada sebelumnya maupun solusi yang menggunakan pendekatan terbaru sehingga lebih efektif.
  • Saluran Saluran sangat penting untuk sarana Anda dalam berinteraksi, promosi hingga transaksi antara pelanggan dengan bisnis Anda. Misalnya dengan membuat website toko perlengkapan olahraga. Jangan lupa untuk menampilkan katalog berupa berbagai perlengkapan olahraga yang Anda tawarkan. Selain bisa menjangkau lebih banyak pelanggan. Website juga bisa dijadikan sebagai sarana untuk melakukan transaksi. Selain itu, tentu saja ada media sosial dan marketplace sebagai saluran atau channel untuk produk Anda.
  • Hubungan Konsumen Setelah mengetahui siapa pelanggan potensial dan channel nya, selanjutnya Anda tentukan bagaimana strategi yang baik untuk perusahaan berinteraksi dengan pelanggan melalui hubungan konsumen ( customer relationship ). Strategi ini tidak hanya saat produk dipasarkan atau promosi saja, namun juga saat merespon keluhan hingga menerapkan strategi customer retention yang bertujuan agar pelanggan terus membeli produk yang Anda tawarkan.
  • Sumber Pendapatan Di dalam elemen ini, Anda harus bisa mengetahui dari mana sumber pendapatan atau pemasukan bisnis Anda. dari contoh toko online perlengkapan olahraga ini, tentu saja sumber pendapatan utamanya adalah dari penjualan alat olahraga.
  • Aktivitas Aktivitas ( key activity ) merupakan elemen yang di dalamnya menjelaskan tentang bagaimana operasional bisnis Anda. Paling utamanya adalah mengelola website sebagai tempat pusat transaksi bisnis. Oleh sebab itu, pastikan website ramah pengguna dan bisa diakses dengan mudah melalui perangkat apapun. Key activity juga berperan dalam promosi untuk membuat audiens bisa lebih mengetahui tentang produk yang Anda miliki. Di era digital seperti saat ini, maka sangat penting bagi Anda untuk mempelajari tentang digital marketing serta bagaimana penerapannya.  
  • Sumber Daya Agar elemen aktivitas bisa berjalan, maka perlu untuk menentukan sumber daya yang sesuai agar aktivitas utama bisnis Anda bisa berjalan dengan baik. Seperti tenaga kerja, keuangan, kekayaan intelektual, barang fisik dan lokasi.
  • Kerja Sama Elemen kerja sama ini menunjukkan terkait daftar sumber daya di luar perusahaan yang dibutuhkan agar model bisnis bisa dijalankan dengan baik. Misalnya, Anda perlu melakukan kerjasama dengan pihak ekspedisi untuk mengirimkan alat olahraga secara tepat waktu kepada pelanggan.
  • Struktur Biaya Elemen terakhir ini berisi tentang biaya yang harus Anda keluarkan untuk mengoperasikan dan keberlangsungan bisnis toko perlengkapan olahraga online Anda. struktur biaya ini juga melibatkan beberapa elemen lain seperti aktivitas, sumber daya dan saluran.

Baca Juga: 10 Model Bisnis Konsultan yang Perlu Kamu Pahami

Tips Untuk Cara Membuat Business Model Canvas

Selain memperhatikan elemen, dalam menyusun bisnis plan model canvas juga perlu memperhatikan beberapa hal agar ide bisnis bisa terwujud dan memberikan hasil secara maksimal. Berikut adalah hal lain yang perlu Anda jadikan perhatian selanjutnya.

  • Mempelajari Kompetitor Mempelajari apa kelebihan dan kekurangan kompetitor ternyata bisa membantu Anda mendapatkan wawasan terkait celah yang bisa dimanfaatkan untuk dimanfaatkan ke dalam bisnis Anda. Misalnya bisa menjangkau pasar yang jauh lebih baik dibanding kompetitor.
  • Fokus Kondisi Sekarang Saat merencanakan bisnis, sebaiknya Anda fokuskan dengan kondisi bisnis pada saat ini dan perhitungkan strategi apa yang terbaik untuk diterapkan.
  • Menghubungkan Setiap Elemen Menghubungkan dan mengurutkan setiap elemen pada BMC sangat penting agar bisa saling mendukung satu sama lain dan menjadi sebuah strategi yang lebih matang. Dengan begitu, Anda bisa mengetahui bagaimana revenue stream bisa didapatkan.
  • Review Lakukan pengecekan ulang dan pastikan semua elemen sudah terhubung dengan tepat. Jika menurut Anda ada yang masih kurang, maka bisa ditingkatkan agar dapat dibuat menjadi lebih baik.

Beberapa poin penting ini bisa membantu Anda saat menyusun Business Model Canvas . Dengan menerapkan cara membuat Business Model Canvas yang tepat, maka perencanaan bisnis Anda bisa berjalan lebih matang.

Dunia bisnis memang penuh dengan tantangan, maka dari itu perdalam pengetahuan Anda dengan bergabung bersama BINUS @Bandung di jurusan Creativepreneurship lewat link berikut ,. 

Selain itu dapatkan pula penawaran beasiswa untuk semua  calon mahasiswa BINUS @Bandung up to 50%. Yuk cek info beasiswa BINUS @Bandung terbaru disini. 

IMAGES

  1. Business Model Canvas

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  2. Business Model Canvas

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  3. Business Model Canvas Explained: Examples And Structure

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  4. Business Model Canvas: Complete business model on a single sheet of paper

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  5. Quick Guide to the Business Model Canvas

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  6. business model canvas

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VIDEO

  1. Day227

  2. Building a Business Model Canvas

  3. Business Model Canvas Sample AirBnB

  4. BUSINESS MODEL CANVAS PRESENTATION ( ETR 2583 ) AISYA HAZRINI BT ABDULLAH ( DHI 4A )

  5. BUSINESS MODEL CANVAS

  6. Writing a Business Plan (Lesson 10): Business Model Canvas Overview

COMMENTS

  1. Create a Business Model Canvas Online

    It's easy with free templates from Canva's online business model canvas creator. You can brainstorm with your team and personalize it with fun design elements and interesting fonts and tools. More than 20 professional types of graphs to choose from. Professionally designed templates to fast-track your workflow.

  2. Business Model Canvas

    1 min read topics Business Model Canvas Business Models The Business Model Canvas is a strategic management and entrepreneurial tool. It allows you to describe, design, challenge, invent, and pivot your business model.

  3. Business Model Canvas: Explained with Examples

    The Business Model Canvas is a strategic management tool that lets you visualize and assess your business idea or concept. It's a one-page document containing nine boxes that represent different fundamental elements of a business.

  4. Business Model Canvas: The Definitive Guide and Examples

    1. Customer Segment 2. Value Proposition 3. Distribution Channels 4. Customer Relationship 5. Revenue Streams 6. Key Resources 7. Key Activities 8. Key Partners 9. Cost Structure Applications and Analysis What to Do After? Some Tips for Beginners Software for Business Model Canvas What Are the Benefits of the BMC?

  5. What is the Business Model Canvas?

    The business model canvas is a tool designers use to map out a business or product's key actors, activities and resources, the value proposition for target customers, customer relationships, channels involved and financial matters. It gives an overview to help identify requirements to deliver the service and more.

  6. Business Model Canvas Template

    The Business Model Canvas template, designed by Alexander Osterwalder and Yves Pigneur, provides a strategic and powerful way to understand your business. The Business Model Canvas (BMC) displays a business model, and it contains nine blocks: fill in each one using stickies, links, sketches, pictures, and videos. Use this business model ...

  7. Make a Business Model Canvas (How-tos, Examples, Tips)

    A business model canvas is a strategic management tool that helps companies visualize new and existing business models they develop. This one-page template allows you to examine the external and internal factors that could make or break your business, such as the infrastructure running your business, what value you're offering, the customers you serve, and the finances that keep your business ...

  8. What is a business model canvas? Overview with template

    The business model canvas is a template introduced by Alexander Osterwalder in 2005 as part of his Ph.D. studies under the supervision of Yves Pigneur. The business model canvas outlines nine crucial elements of a business model in an easy-to-understand visual template: customer segments, value proposition, channels, customer relationships ...

  9. Business Model Canvas Explained: Definition and Components

    Business Business Model Canvas Explained: Definition and Components Written by MasterClass Last updated: Sep 21, 2021 • 3 min read The simple, visual template of the Business Model Canvas has made it a favorite among entrepreneurs and business strategists.

  10. What is a Business Model Canvas? Quick Guide + Examples

    Based on the work of Alexander Osterwalder, a Business Model Canvas, or BMC for short, is a diagram used to visualize a business model; it allows structured organization and a quick method of evaluation and reflection on the effectiveness of a Business Model.

  11. Business Model Canvas

    The Business Model Canvas is a strategic management template used for developing new business models and documenting existing ones.

  12. Business Model Canvas: A 9-Step Guide to Analzye Any Business

    Created by Swiss entrepreneur and Strategyzer co-founder, Alexander Osterwalder, the Business Model Canvas is a visual representation of the 9 key building blocks that form the foundations of every successful business. It's a blueprint to help entrepreneurs invent, design, and build models with a more systematic approach.

  13. How to Create a Business Model Canvas (With Template)

    Inspired by the business model canvas, the lean model canvas was created by Ash Maurya. It is a one-page business plan template that distills the lean startup methodology into the original business model canvas. Lean model canvas assimilates multiple essential data points to develop a simpler, start-up optimized version of a business model canvas.

  14. 11.2 Designing the Business Model

    A canvas is a display that would-be entrepreneurs commonly use to map out and plan different components of their business models. There are several different types of canvases, with the business model canvas and the lean canvas being the most commonly used. There are hard-copy canvases modeled after an art canvas as well as digital versions.

  15. Business Models: Toolkit to Design a Disruptive Company

    The Business Model Canvas is a strategic management and lean startup template for developing new or documenting existing business models. It is a visual tool with elements describing a company's value proposition, infrastructure, customers and finances. It provides an organized way to lay out your assumptions about not only the key resources and key activities of your value chain, but also ...

  16. Business Model Canvas

    Steps. Download and print out a Business Model Canvas for each of your team members. Here's a good one. Sit down with your team and start to fill out the sections of the Business Model Canvas. When you fill it out the first time, expect for there to be holes. It's okay not to know exactly how everything will work.

  17. Business Model Canvas (2023)

    The Business Model Canvas (BMC), invented by Alex Osterwalder of Strategyzer, is a tool to describe and visualise how a business creates, delivers and captures value all in an easy to understand, one-page document.. It's a way to organise and present assumptions regarding the nine inter-related building blocks: customer segments, value proposition, channels, customer relationships, key ...

  18. Free download 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.

  19. Free customizable business model canvas templates

    Skip to start of list. 661 templates. Create a blank Business Model Whiteboard. Mood Board Whiteboard in Red Yellow Brainstorm Style. Whiteboard by Canva Creative Studio. Project Plan Planning Whiteboard in Blue Purple Modern Professional Style. Whiteboard by Canva Creative Studio.

  20. Business Model Canvas Explained: Examples And Structure

    Business canvas, also known as a lean business plan, is a time-saving approach to business planning, opposed to traditional planning methods. Rather than describing the detailed vision, mission, operations, it answers key questions - and the team derives the conclusion from this answer. Business model canvas is more attainable than a business ...

  21. 10 Free Business Model Canvas Templates in Word and ClickUp

    What is a Business Model Canvas Template? Business model canvas templates are pre-built and customizable tools to outline and visualize your business model on a single page. These documents quickly define your company's unique value proposition, target audience, revenue, cost, resources, key partnerships, and more.

  22. Business Model Canvas

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