Business Model Canvas

A strategic management tool for developing new or documenting existing business models

What is a Business Model Canvas?

A Business Model Canvas is a strategic management template used for developing new business models and documenting existing ones. It offers a visual chart with elements describing a firm's or product's value proposition, infrastructure, customers, and finances, helping businesses align their activities by illustrating potential trade-offs.

Key Components

Customer Segments: The groups of people or organizations a company aims to reach and serve
Value Propositions: The products and services that create value for a specific customer segment
Channels: How a company communicates with and reaches its customer segments to deliver a value proposition
Customer Relationships: The types of relationships a company establishes with specific customer segments
Revenue Streams: The cash a company generates from each customer segment
Key Resources: The most important assets required to make a business model work
Key Activities: The most important things a company must do to make its business model work
Key Partnerships: The network of suppliers and partners that make the business model work
Cost Structure: All costs incurred to operate a business model

Benefits of Using a Business Model Canvas

Provides a holistic view of the business on a single page
Helps identify and understand key business drivers
Facilitates brainstorming and strategic discussions
Allows for quick iterations and pivots in business planning
Enhances communication of the business model to stakeholders

How to Use

To use a Business Model Canvas, start by filling out each of the nine components with your business's specific details. This can be done individually or as a team exercise. Regularly revisit and update your canvas as your business evolves or market conditions change. The canvas serves as a dynamic tool for ongoing business model innovation and refinement.