Business Model Canvas

A strategic management template for developing new or documenting existing business models.

Canvas Components

1. Customer Segments

Define the different groups of people or organizations you aim to reach and serve.

Mass Market: Large group with similar needs
Niche Market: Specific, specialized segment
Segmented: Slightly different needs and problems
Diversified: Unrelated customer segments
Multi-sided: Two or more interdependent segments

2. Value Propositions

Describe the bundle of products and services that create value for specific customer segments.

Problem solving
Performance improvement
Customization
Design/brand status
Price/cost reduction
Risk reduction
Accessibility
Convenience/usability

3. Channels

Explain how you communicate with and reach customer segments to deliver value propositions.

Awareness: How do customers find you?
Evaluation: How do they evaluate your offer?
Purchase: How can they buy?
Delivery: How is value delivered?
After-sales: What support is provided?

4. Customer Relationships

Describe the types of relationships established with each customer segment.

Personal assistance
Dedicated personal assistance
Self-service
Automated services
Communities
Co-creation

5. Revenue Streams

Represent the cash generated from each customer segment.

Asset sale
Usage fee
Subscription fees
Lending/renting/leasing
Licensing
Brokerage fees
Advertising

6. Key Resources

Describe the most important assets required to make the business model work.

Physical: Facilities, equipment, vehicles
Intellectual: Brands, patents, copyrights
Human: Skilled employees, expertise
Financial: Cash, credit lines, guarantees

7. Key Activities

Describe the most important things you must do to make the business model work.

Production
Problem solving
Platform/network management
Supply chain management
Marketing and sales

8. Key Partnerships

Describe the network of suppliers and partners needed for the business model.

Strategic alliances
Joint ventures
Buyer-supplier relationships
Licensing agreements

9. Cost Structure

Describe all costs incurred to operate the business model.

Fixed Costs: Remain the same regardless of volume
Variable Costs: Vary with production volume
Economies of Scale: Cost advantages with volume
Economies of Scope: Cost advantages from larger operations

Using the Canvas

Step 1: Customer Focus

Start with customer segments and value propositions

Step 2: Infrastructure

Define key activities, resources, and partnerships

Step 3: Finances

Determine revenue streams and cost structure

Step 4: Validate

Test assumptions with real customers

Step 5: Iterate

Refine based on feedback and learning

Canvas Template

|  Key Partners  |  Key Activities  | Value Props | Customer Relations | Customer Segments |
|               |                  |             |                    |                   |
|               |  Key Resources   |             |     Channels       |                   |
|               |                  |             |                    |                   |
| Cost Structure                  |           Revenue Streams                           |

Best Practices

Fill out as a team
Use sticky notes for flexibility
Start with rough drafts
Test with customers
Update regularly
Consider multiple models