Step 7

Business Model Canvas

The purpose of a business

The purpose of a business is to make money by creating something of value to customers (products or services) and capturing the value you deliver to them by charging them for it.

 

Business model framework

A business model is a simplified representation of the different aspects of a business that enable it to create value for customers and then profit from that value delivered.

 

The business model canvas is a one page template for designing and documenting your business model. The one page, 9 section format of the canvas makes it easy for you to fit every major aspect of your entire business in your head.

 

To fill out the business model canvas, the following questions need to be answered:

  1. How will the business create value for customers?
    1. What is the issue the business is going to resolve to create value for the customers?
    2. What is the solution the business is creating to solve this issue (value proposition)?
    3. What segment of the population faces this issue (target market)?
    4. What are the key resources required to deliver the product/service?
    5. Who are the key partners required to deliver the product/service?
  2. How will the business operate to make profit from the value it’s creating for customers?
    1. What are the key activities required to deliver the product/service
    2. What are the distribution channels through which the customers will purchase the product/service?
    3. What is the business’s marketing strategy?
    4. What are the operational costs?
    5. What are the revenue streams?

 

Here are some great examples of what a business model canvas would look like for some big companies that you already know of:

 

Here is the business model canvas. Download it by right clicking and selecting Save Image As… and take your time filling it out. You are essentially designing your business with this exercise.

BUSINESS MODEL CANVAS

Click next when you have filled out your canvas…