The Simple Guide to the Business Model Canvas | creative (2023)

Do you have a new business idea but don't know how to put it into practice? Do you want to improve your current business model? Overwhelmed by writing your business plan? There is a one page technique that can give you the solution you are looking for and that is the business model canvas.

In this guide, you will have thebusiness model outlineexplained, along with steps on how to create one. All of the business model canvas examples in the post are editable online.

What is a business template canvas?

Abusiness modelit is simply a blueprint that describes how a business intends to make money. It explains who your customer base is and how you deliver value to them, and details related to financing. And the business model canvas allows you to define these different components on a single page.

The Business Model Canvas is a strategic management tool that allows you to visualize and evaluate your idea or business concept. It is a one page document that contains nine boxes that represent different fundamental elements of a business.

The Business Model Canvas surpasses the traditional multi-page business plan and offers a much easier way to understand the different core elements of a business.

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

The Business Model Canvas was originally developed by Alex Osterwalder and Yves Pigneur and presented in their book 'Generation of business models’ as a visual framework for planning, developing, and testing an organization's business models.

Why You Need a Business Template Canvas

• BMC provides a quick overview of the business model and is devoid of unnecessary details compared to the traditional business plan.
• The visual nature of the Business Model Canvas makes it easy for anyone to refer to and understand.
• It is easier to edit and can be easily shared with employees and stakeholders.
• The Business Model Canvas can be used by both large corporations and startups with just a few employees.
• It clarifies how different aspects of the business relate to each other.
• You can use a BMC model to guide adebatesession on how to define your business model effectively.

How to make a business template display

There are nine building blocks on the business model canvas and they are the customer value proposition, customer segments, channels, customer relationships, revenue streams, key resources, key partners, key activities and cost structure.

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

What are the 9 components of the Business Model Canvas?

1. customer segments
2. Consumer Relations
3. Canales
4. sources of income
5. Main activities
6. Main features
7. Main Partners
8. cost structure
9. Value proposal

Let's see what the 9 BMC components are in more detail.

customer segments

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

Segment your customers based on similarities such as geographic area, gender, age, behaviors, interests, etc. it gives you the opportunity to better meet their needs, that is, by customizing the solution you are providing to them.

After a thorough analysis of customer segments, you can determine who to serve and who to ignore. Sobreed customer personasfor each of the selected customer segments.

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

• mass market:A business model focused on mass markets does not 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.
• market niche:Here, the focus is on a specific group of people with unique needs and characteristics. Here, value propositions, distribution channels, and customer relationships must be customized to meet your specific requirements. An example would be buyers of sports shoes.
• Segmentario:Based on slightly different needs, there may be different groups within the core customer segment. In this way, you can create different value propositions, distribution channels, etc. to meet the different needs of these segments.
• Diversified:A diverse market segment includes customers with very different needs.
• Multilateral markets:this includes interdependent customer segments. For example, a credit card company serves both credit card holders and the merchants who accept those cards.

To useSTP template templatesto segment your market and develop optimal marketing campaigns

Visualize, evaluate and update your business model. Brainstorm with your team about your next business model innovation.

Create a business model

Consumer Relations

In this section, you should establish the type of relationships you will have with each of your customer segments, or how you will interact with them throughout their journey with your business.

There are different types of customer relationships.

• Personal assistant:interacts with the customer in person or by email, phone or other means.
• Dedicated Personal Assistance:you assign a dedicated customer service representative to an individual customer.
• Self-service:here you do not maintain a relationship with the client, but rather provide what the client needs to help themselves.
• Automated services:this includes automated processes or machines that help customers perform the services themselves.
• Communities:this includes online communities where customers can help each other solve their own product or service problems.
• Co-creation:here the company allows the customer to be involved in the design or development of the product. For example, YouTube has given its users the opportunity to create content for their audience.

You can understand the type of relationship your customer has with your company through acustomer journey map. This will help you identify the different stages your customers go through when interacting with your business. And it will help you understand how to acquire, retain and grow your customers.

Canales

This block is to describe how your business will communicate and reach your customers. Channels are the touch points that allow your customers to connect with your business.

Channels play a role in building awareness of your product or service among customers and delivering your value propositions. Channels can also be used to allow customers to purchase products or services and provide post-purchase support.

There are two types of channels.

• Own channels:company website, social networking sites, inside sales, etc.
• Associated channels:partner-owned sites, wholesale distribution, retail, etc.

income streams

Revenue streams are the sources from which a business makes money by selling its product or service to customers. And in this block, you need to describe how you will monetize your value propositions.

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

• Transaction-Based Income:made from customers making a single payment
• recurring income:made of ongoing payments for ongoing services or after-sales services

There are several ways to monetize with

• Sale of assets:sell ownership rights in a product to a buyer
• Usage fee:charge the customer for the use of your product or service
• Registration fee:charge the customer for regular and consistent use of your product
• Loan/Lease/Rent:the customer pays to obtain exclusive rights to use an asset for a fixed period of time
• License:customer pays to obtain permission to use company intellectual property
• Brokerage Fees:income generated by acting as an intermediary between two or more parties
• Announcement:charging the client to advertise a product, service or brand on company platforms

Main activities

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

These key activities should be focused on delivering on your value proposition, reaching customer segments, and maintaining customer relationships and generating revenue.

There are 3 categories of key activities;

• Production:design, manufacture and deliver a product in significant quantities and/or of superior quality.
• Troubleshooting:find new solutions to individual problems faced by customers.
• Plataforma/red:Creation and maintenance of platforms. For example, Microsoft provides a trusted operating system to support third-party software products.

Main features

This is where you list what key resources or key inputs are needed to perform 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(trademark, patents, intellectual property, copyright)
• Physicist(equipment, inventory, buildings)

Main Partners

Key Partners are the external companies or vendors that will help you carry out your key activities. These alliances are made with the objective of reducing risks and acquiring resources.

The types of alliances are

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

cost structure

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

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

Businesses can be cost-based (focus on minimizing costs wherever possible) and value-based (focus on providing maximum value to the customer).

value propositions

This is the building block that is at the center of the business model canvas. And it represents your unique solution (product or service) to a problem facing a customer segment or creating value for the customer segment.

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

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

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 also receive their feedback. The Business Model Canvas is a living document, so once you've completed it, you need to review it and make sure it's relevant, up-to-date, and accurate.

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