This is the first blog post in our Business Model Canvas Series which outlines how you can use the canvas to map out your business and what the benefits are.
In this post, we’ll provide a brief overview of the key Strategyzer tool called The Business Model Canvas.
So, what is The Business Model Canvas?
It is a new creative way to map out your business, allowing you to design, challenge and improve your business model or to create one for a new business idea. It fosters new ways of thinking by mapping out your business model into strategically placed categories.
The Canvas is composed of 9 basic building blocks:
These are the people for who you’re creating value, or the different segments of your market.
Each customer segment has a specific value proposition, which can be mapped out in this section.
How you interact and communicate with customers, in other words, your touchpoints.
This is the kind of relationship between you and your customers.
These are the ways in which you generate revenue for your business.
What resources you need for your business.
What you need to do to be successful.
Important people that can help leverage your business model.
The cost structure of your business model should detail all of your important costs, for example, which key partnerships and activities are the most expensive?
So, what are the benefits of using the Business Model Canvas?
The most obvious benefit is that this tool allows you to really understand how any business works, providing a key overview of the whole business model on one page.
We use this tool with our customers to help understand their business so we can really get to know them and consistently provide value to them, so this tool is invaluable to us when improving our own service.
You can download a copy of The Business Model Canvas here.
Look out for our next blog post in the series which will be an overview of The Value Proposition Canvas and how you can use it to really understand each of your customer segments.
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