Business Model Canvas

A visual and comprehensive tool for defining and describing the business model of a product or service, focusing on essential aspects like infrastructure, offering, customers, finances, and resources.

About

The Business Model Canvas is a strategic management tool that provides a visual overview of a business's key components. It consists of nine building blocks, including customer segments, value propositions, channels, and revenue streams. By mapping these elements on a single canvas, businesses can easily visualize and analyze their business model. This tool fosters alignment, innovation, and strategic planning, making it essential for startups and established businesses alike.

Suitable for

  • Business model design
  • Understanding the viability of a proposed product or service
  • Presenting the proposed service to potential investors

Deliverables

Value Proposition Canvas

A clear illustration of the product's unique selling points and the value it provides to its users, by identifying customer needs and how the product intends to fulfill them.


Customer Segments

A comprehensive outline of the different groups of users who will benefit from the product, detailing their specific needs, preferences, and expectations.


Channels

A breakdown of the marketing, distribution, and communication channels that will be used to reach target customer segments and deliver the product's value proposition.


Customer Relationships

A strategy for establishing and maintaining long-term relationships with customers, focusing on how to create customer loyalty, engage users, and handle feedback.


Revenue Streams

An overview of the different ways the business plans to generate revenue from the product, including pricing strategies, sales projections, and service fees.


Key Resources

A list of the essential resources needed to deliver the product's value proposition, including physical assets, intellectual property, human resources, and funding.


Key Activities

A description of the core activities the business will undertake to deliver its value proposition, such as product development, marketing, and customer support.


Key Partnerships

An analysis of strategic partnerships and collaborations that are necessary for the success of the product, including suppliers, distributors, and industry influencers.


Cost Structure

A detailed breakdown of the costs associated with delivering the product's value proposition, including fixed and variable costs, operating expenses, and capital investments.

Procedure

1

Understand the Concept

Business Model Canvas is a strategic management and lean startup template for developing or documenting new or existing business models. It is a visual chart with nine elements describing a firm's value proposition, infrastructure, customers, finances, and other aspects.

2

Gather Team Members

Assemble a team consisting of diverse members from different business areas. Collaboration from a variety of stakeholders will provide a broader perspective, ensuring a more comprehensive analysis.

3

Choose a Canvas Template

Select a suitable Business Model Canvas template from tools such as Miro, Canva or simply use a large whiteboard or poster paper to physically draw the canvas. It should consist of nine blocks for each of the elements.

4

Value Proposition

Describe the product or service, and outline how it solves customers' problems, meets their needs, or provides a unique value. This is the core offering of the business model and should be the focus of the canvas.

5

Customer Segments

Identify the different groups of people or organizations your business serves. Determine your primary target audience and any secondary audiences. Understand their characteristics, needs, and preferences.

6

Channels

Outline the various ways your business will communicate, deliver, and distribute its value proposition to the customer segments. This includes marketing channels, sales channels, and distribution channels.

7

Customer Relationships

Describe the nature of the relationships you establish with each customer segment, such as personalized assistance, self-service, or dedicated support. These relationships are crucial for customer engagement and retention.

8

Revenue Streams

Identify the sources of income your business generates through the value proposition. This includes transactional revenue, recurring revenue, and additional revenue opportunities from partnerships, licensing, or ancillary services.

9

Key Resources

List the main assets your business requires to function, including physical resources, intellectual resources, human resources, and financial resources. This helps in understanding the investments needed and the infrastructure basis.

10

Key Activities

Outline the essential activities your business undertakes to make its value proposition available to customers. This includes production, problem solving, platform development, and any other critical operations.

11

Key Partners

Identify the crucial external partners that contribute to the success of your business. This includes suppliers, distributors, strategic partners, and any other organizations necessary for the functioning of the business model.

12

Cost Structure

Enumerate the main costs incurred while operating your business, such as production costs, labor costs, marketing costs, and others. This provides context for understanding the financial sustainability of the business model.

13

Review and Iterate

Continuously revisit and update the Business Model Canvas as your business evolves, market conditions change, or new opportunities arise. This tool is meant to be a dynamic and collaborative guide to adapt to the ever-changing business environment.

Support the project

Donate to UX Methods today. As the largest UX method database on the web, your contributions will help maintain our platform and drive exciting new features. Keep the resource free, up-to-date, and comprehensive for everyone. Make a difference in the UX community!