BUSINESS MODEL CANVAS: 5 MIN GUIDE

A business model canvas was developed by Alexander Osterwalder in 2005. It is a strategic business template used to create a new or existing business model. It lists the strategic details of the business under one page or a single canvas. It is a very focused and detailed version of the business and its key strategic operations. 

Business Model Canvas: 5 Min Guide

A business model is segregated into 9 segments, namely:

• Customers: it defines the customers that you will target to sell your products and services

• Value proposition: it states the value the business will deliver to its customers by the way of products and services. 

• Channels: This segment lists the channels through which the products or services will be made available to the customers. It carefully evaluates the best cost-effective channel.

• Customer relationships: it states the relationship that is to be built with the customer and lists the various steps the business will take to create a good relationship with its customers. 

• Key activities: the activities and the unique tasks the business will perform to deliver the value proposition. 

• Key Resources: It lists the resources or, moreover, the assets of the business. These assets can be human resources, distribution channels, values etc. 

• Key partners: key partners constitute the key suppliers, investors and other stakeholders. 

• Revenue streams: it states the revenue generation process and strategies to be followed by the business.

• Cost structure: Cost is one of the most critical factors every business wishes to minimize. The cost segment lists the business's significant costs and how these can be controlled. 

  
  

Filling in the business model canvas is a meticulous process. It must be created by new businesses as well as the existing businesses time and again. A business canvas is more like a business plan laid down on a single piece of paper. It creates a focus for the business concerning its customers, how to reach the target customers, deliver value and build relationships with them. It also provides a clear picture of the business's activities, revenue, cost, and partners. A business canvas lays the foundation for the business and is also helpful in many situations to attract potential investors.