30 minutes for business plan: Business Model Canvas

30 minutes for business plan: Business Model Canvas

30 minutes for business plan: Business Model Canvas made easy.

How do I get started?

Step 1 (of 9): Customer Segments

Step 2 (of 9): Value Propositions

Step 3 (of 9): Channels

Step 4 (of 9): Customer Relationships

Step 5 (of 9): Revenue Streams

Step 6 (of 9): Key Activities

Step 7 (of 9): Key Resources

Step 8 (of 9): Key Partnerships

Step 9 (of 9): Cost Structure

     What’s the Business Model Canvas?

The Business Model Canvas (BMC) gives you the structure of a business plan without the overhead and the improvisation of a ‘back of the napkin’ sketch without  the fuzziness (and coffee rings).

Together these elements provide a pretty coherent view of a business’ key drivers:

  • Customer Segments: Who are the customers? What do they think? See? Feel? Do?
  • Value Propositions: What’s compelling about the proposition? Why do customers buy, use?
  • Channels: How are these propositions promoted, sold and delivered? Why? Is it working?
  • Customer Relationships: How do you interact with the customer through their ‘journey’?
  • Revenue Streams: How does the business earn revenue from the value propositions?
  • Key Activities: What uniquely strategic things does the business do to deliver its proposition?
  • Key Resources: What unique strategic assets must the business have to compete?
  • Key Partnerships: What can the company not do so it can focus on its Key Activities?
  • Cost Structure: What are the business’ major cost drivers? How are they linked to revenue?

The Canvas is popular with entrepreneurs and intrapreneurs for business model innovation. Fundamentally, I find it delivers three things:

  • Focus: Stripping away the 40+ pages of ‘stuff’ in a traditional business plan, I’ve seen users of the BMC improve their clarify and focus on what’s driving the business (and what’s non-core and getting in the way).
  • Flexibility: It’s alot easier to tweak the model and try things (from a planning perspective) with something that’s sitting on a single page.
  • Transparency: Your team will have a much easier time understanding your business model and be much more likely to buy in to your vision when it’s laid out on a single page.