By Rachel Won / 3 Feb 2020 / Tags: Entrepreneur Journey

We have an idea that can change the world! What and who do we need to make that idea a reality? Who can help us? What will it cost? Who will pay for it? At the end of the day we can lay out all aspects of production and then start investigating who will pay for it – are there customers? Can we package it and sell it to different people in different ways?

Business Model Canvas is a strategic management and lean startup template for developing new or documenting existing business models.

It is a visual chart with elements describing a firm’s or product’s value proposition, infrastructure, customers, and finances. It assists firms in aligning their activities by illustrating potential trade-offs.

The nine “building blocks” of the business model design template that came to be called the Business Model Canvas were initially proposed in 2005 by Alexander Osterwalder based on his earlier work on business model ontology.

9 Building Blocks
1. Customers Segments (CS)
Who are your customers?
Are you serving 1 to 1 basis or serving many customers at the same time?
Which segments/markets/industries are they in?

2. Value Propositions (VP)
What are your unique selling points? What is the problem you are trying to solve?
It seeks to solve customers’ problems and satisfy the customer needs with value propositions.

3. Customer Relationships (CR)
How do you maintain your relationships with your customers?
Customers relationships are established and needs to be maintain for a long period of time to have continuous flow of trust, sales and support.

4. Channels (CH)
Value propositions are delivered to the customers through communications such as various media, social medias, distributions, sales channels.

5. Key Partners (KP)
Who are the key partners and vendors that you work closely with? Business activities that are outsourced and some resources are acquired outside the company.

6. Key Activities (KA)
What kind of services are you providing?

7. Key Resources (KR)
Key resources are assets required to offer and deliver the services that you are providing.

8. Cost Structure (C$)
The Business Model Elements results in the cost structure. The entire cost of the business such as manpower, retail, operations etc.

9. Revenue Streams (R$)
The Revenue streams result from value proposition offered successfully to the customers.

You can download the Business Model Canvas.
The best thing to do is see for yourself and understand that, although aimed mainly at for-profit businesses, this is a method that can be applied to any form of value-creation – not just the money kind.

Keen to know how Business Model canvas can help you to see your business more clearly?
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