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Business Model Canvas

 


Business Model Canvas: 

Business model canvas is a shared language for describing, visualizing, assessing and changing Business models. It describes the rationale of how a business creates, delivers and capture values. Also Business canvas model helps you in understanding easily the Business Models mechanisms. Business model canvas has different components as it can be seen down here;


Customers Segments

Here a Pareto concept should be applied which states that; 20% of customers bring 80% of the all company or business profit. Therefore, you should segment the top three segments which provide the most revenue in your business or company.

Value Proposition

You are required in this component to be able to describe your products and services in a way that customers or clients must choose to buy on you and not your competitors.

In this sections; the use of USPs is highly recommended. USPs briefly refers to as a Unique Selling Proposition to mean that, you must have your own way of selling your products and services which will differentiating you from your competitors. Picture this scenario: You and your competitors selling Notebooks; but you decide to sell each Notebook with a free pen. Pen is a example of USPs.

Revenue streams

You have to list the most revenue streams. If you do things for free; add them here too. Don’t inject anything new in your business without reviewing your revenue streams in a business model canvas

Channels

This is the most important key or component just because it is the place where you are going to meet your customers or clients. So how are you going to communicate with your clients or customers ? And this play a major role for those who are doing online business. Make sure you select appropriate channel or platform to meet your customers or clients.

Customers relationship

The relationship between you and your customers determine for how long will you be together. Don’t let the relationship between you and your customers starts threatening your business. For example, you don’t reply the questions of your customers in a comment section; this will make customers to leave you once they get someone who taking a good care of them.

Key activities

What do you do everyday to run your business model ? Or are you just placing the products in the market and wait customers to come and buy ? Are you looking new customers  and keeping the existing one ?

Key resources

Also here you have to be very careful because it all about people, knowledge, means and money you need to run a business.

Key partners

Who are the partners that you can’t do business without them. Example, Android phones manufacturer can’t do their business without Google services such as emails, play store etc.

Cost structure.

List the top costs depending on key activities and resources. Don’t underestimate costs for supporting a business until it can be able to generate profits.

 


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