Business Model Canvas

Business Model Canvas is a strategic management and lean start up template for developing new or documenting existing business models. it's a visual chart with components describing a firm's or product's value proposition, infrastructure, customers, and finances.

The Business Model Canvas has three important advantages:

  • Focus. The BMC is intended to guide thinking through each of the key parts or building blocks for making a business model
  • Speed . The key principle of the BMC is to concentrate on quality instead of quantity. Common Language.
  • It’s helpful for developing a portfolio of ideas

The Business Model Canvas has 9 different areas of focus that make up building blocks in a visual representation of your business.

  • Key Partners — Who are the consumers and suppliers you need to make relationships with? What are the other alternate alliances can assist you accomplish core business activities and full-fill your value proposition to customers?
  • Key Activities — What are the most important activities you need to engage in to full-fill your value propositions, to secure distribution channels, to strengthen client relationships, to optimize revenue streams, etc.?
  • Key Resources — What resources do you need to create value for your customers and sustain your business?
  • Value Propositions — What product and services can you provide to full-fill the requirements of your customers? however can your business vary from your competition? What challenges can you solve for your customers?
  • Customer Relationships — What types of relationships can you forge with your client segments? What are the relationship expectations of every client segment? how are they entwined with the rest of your business model?
  • Customer Segments — What sets of customers can you serve? which are most important to your business?
  • Channels — Through what means can you reach your targeted customers and deliver your product and services to them? That are most cost effective? how are the channels integrated?
  • Cost Structure — What are the key costs your business will face? which resources will cost the most? that activities can cost the most?
  • Revenue Streams — How much can you charge for your product and services? What are customers willing to pay for? how can customers pay? how much will each revenue stream contribute to your overall revenue?