You can use the business model canvas to understand, analyze and evaluate businesses in addition to using it to design and plan out your own business. The canvas referenced here originated from Strategyzer.com This site also has a paid course on Mastering Business Models. There is also a book titled "Business Model Generation" that is worth reading if you want to go into more depth on this topic. There are also many related resources you can discover online for free. If you have not explored LinkedIn Learning, worth trying a free trial of it to learn more about startups, business models and analyzing businesses. Matt Rebeiro - Challenge the Status Quo #BusinessModelCanvas #bpi #startup #BusinessModel

Choosing the right template for your Business Model Canvas is crucial for visualizing your business plan effectively. 🌟 Whether you use the classic Osterwalder and Pigneur template or create your own, the key is to ensure it aligns with your business goals and is user-friendly. Digital tools like Canva and Miro can add a layer of interactivity and collaboration, making the process more dynamic and engaging. 🚀 Remember, the template is just a starting point; the real magic happens when you fill it with innovative ideas and strategic insights! 💡

If you already have experience using the canvas, by all means, customise it you your specific situation or need - but if you're new to this particular tool spend time using it and sticking with the 'tried and trusted' generic versions first. The 'original' from Osterwalder is excellent - also look at the Lean Business Model Canvas which puts a greater emphasis on the problem being addressed and the specific solutions that will solve it.

The business model canvas is an excellent way to quickly and easily define a business idea or concept. Prioritize clarity and time to market above the 50-page business plan. I also highly recommend to hop over to Strategyzer.com and try it out.

Choosing a Business Model Canvas (BMC) template involves considering several factors from purpose to business needs. Determine if the template is for brainstorming, presenting to stakeholders, or detailed planning. Look for templates that allow easy customization to fit your specific needs. Choose a visually appealing design that is easy to understand and navigate. Ensure the template is compatible with the tools you use, like Excel, PowerPoint, or online platforms like Canva. Some templates come with examples and tips, which can be helpful if you’re new to BMC. By considering these factors, you can select a template that best suits your business needs and goals.

Although your value proposition should be short and to the point, it’s important that you are able to expand on how you deliver your value proposition and how your customers can measure what separates you from your competitors. Remember, it’s always about what’s in it for your customers.

I prefer to identify the customer segments first, followed by the value propositions for each custom segment. So, Step 2 is the customer segments, and Step 3 is the value propositions. Also, every value proposition listed here must have a strategic and tactical plan to deliver the value proposition. If you are still determining how to offer that value proposition, please refrain from listing it here.

Ideally you should start with Customer Segments, so you can cater your Value Proposition to each segment. Nevertheless, this is a core part of the Canvas. This should answer the fundamental question, what value do we add to our customers? Examples: Design, Quality, Price, Customer Service etc.

In the early days of my business, someone recommended the value proposition canvas to me, and it was extremely helpful. It's always about our customers and how we can serve them better.

Clearly defining and communicating a compelling value proposition is key to visualizing the essence of your business plan on a canvas. Focus on the customer segment, their key needs and the unique problems the business solves for them. Frame this crisply from the target audience's perspective on how the product or service offering meets their requirements better than alternatives. Quantify it in clearly measurable and differentiating terms. Augment this core pitch with qualitative descriptions of how customers are empowered by specific capabilities and the ensuing experience benefits. Capture value drivers such as innovation, enhancements planned on the roadmap ahead of competition.

I suggest starting with two to three segments as this will help you narrow your marketing strategies and potentially have a more effective sales flow. Also, a segment might have multiple sub-segments which are not obvious to the outsider but can give you the opportunity to target clients in sectors of a larger industry. As the number of clients in one sub segments increases, it can grow into becoming a separate segment. An example of this is the wellness industry where you can target and service various sub-segments of the industry but each of them can grow into their own segment.

Research is key. For my wife’s new business, we quickly learned through taste tests that our target customers are usually younger than 60. An exception we found was women with grown children or grandchildren that wanted something new and spicy that would entice them to visit.

In my experience this step is one of the most important in any business plan and it very often eludes us. In a world that changes almost on a daily basis it is very possible, almost likely for one to not see important future (even short-term) changes to the target market. In my opinion one possible way to mitigate these miscalvulations is to simulate as many as possible possible future scenarios, even some that may seem to be « odd » to many. This iterative process should mitigate risk of not predicting with reasonable accuracy one’s market/customer segments.

This section should be expanded more. Segmentation is one activity that need to be done as precisely as possible and this section is too vague

Don't forget (or be afraid of) adding a time dimension to your canvas. List customer segments keeping in mind that not all segments need to be (or can be) tackled immediately or at the same time. If you have multiple potential customer groups - can you prioritise them ? Tackling segments separately or sequentially can also reduce the scale and complexity of initial products/services - which reduces risk and costs and time, increasing likelihood of success for the initial offer.

Defining go-to-market channels is imperative for mapping out how offerings will reach target customer segments. Determine the optimal direct, retail or own infrastructure pathways by balancing costs versus control tradeoffs specific to products and segments. Model omni-channel options if meeting customers at multiple touch points improves penetration. Outline steps and partnerships needed to take offerings to market across these channels from a customer journey standpoint. Estimate percentage share of business for channel alternatives factoring in adoption curves and localization needs. For innovative offerings with adoption uncertainties, pursue agile, test-first approaches rather than large, revenue-centric investments upfront.

A Go-to-Market (GTM) plan outlines how to introduce and sell your product. Start with market research to understand customer needs and competition. Identify your target audience using segmentation to create detailed personas. Develop a compelling value proposition that highlights your unique benefits. Plan your marketing strategy with channels like social media and content marketing. Define your sales strategy and pricing models. Determine your distribution plan for delivering the product. Set up customer support to ensure satisfaction. Measure success with metrics and KPIs, and continuously gather feedback to refine your approach.

Channels are the ways you reach your customers and deliver what your business offers. This includes marketing, sales, and how you get your product or service to them. Think about how you’ll get attention, make sales, and support customers after they buy. Write your channels next to the customer segments on the canvas.

Obviously - (is anything really obvious?) - be realistic in your revenue stream assessment. Put some sensitivity/scrutiny in to your assessments - are your revenue streams objective and realistic, or are you basing them on what you're hoping will happen. Test them with some objective, independent colleague or observers (or, better still, test with some potential customers)

Specify this section by detailing key revenue sources and their respective monetization strategies. Identify primary, secondary, and potential new revenue streams. Clearly articulate the value proposition and pricing mechanisms for each segment. Consider diversification, upselling, or subscription models. Regularly review and adapt revenue strategies based on market dynamics and customer feedback to ensure ongoing financial sustainability.

Revenue streams represent the ways your business generates income. Key types include direct sales, subscription fees, freemium models, licensing, commission-based earnings, advertising, rental and leasing, and royalties. Pricing strategies like cost-plus, value-based, dynamic, penetration, and skimming help determine how much customers will pay. Payment methods can be one-time, recurring, installments, or pay-per-use. To increase revenue, consider upselling, cross-selling, and introducing new revenue streams. Optimizing these elements ensures alignment with customer needs and market opportunities.

Revenue streams are the ways your business makes money from customers. This includes how you set prices, how customers pay, and how often they pay. Think about what your customers are willing to spend and how you can boost your income. Write these details below your channels on the canvas.

Don't forget to consider 'time' and capacity. Do you, or other people you need to help you, have time and capacity to do the activities you have identified. If not, how will you create the time or capacity ? Stop doing something else ? Find additional staff/friends/family ? Sub-contract ?

Key resources are the important things you need to deliver what your business offers. These include your equipment, knowledge, staff, and money. Think about what you already have and what you still need to get. Write down these resources and put them on the left side of the canvas.

Here you should identify the most important resources for your business in order to deliver your value proposition to the customers.

Physical Resources: Tangible assets like machinery, buildings, technology, and inventory that are necessary for production and service delivery. Intellectual Resources: Intangible assets such as patents, trademarks, copyrights, proprietary technology, and brand reputation that provide a competitive edge. Human Resources: The skills, expertise, and experience of your team members. This includes management, technical staff, and support personnel crucial to executing your business model. Financial Resources: Capital and funding needed for operations, growth, and investment. This includes cash reserves, investment capital, and credit lines. Identify which resources are critical, what you possess, and what resources you need to acquire.

This step should be performed and evaluated frequently to ensure all activities are aligned with organizational goals and vision. Placing them next to resources can help reduce redundancy and wasteful activities

To help create a well thought out business canvas, do some research as a prerequisite. Here are some questions to get started: How the business is trying to solve an identified problem? How it plans to solve this problem? Who would be willing to exchange money for the solution? How the business plans to generate revenue? and What to call the business

Clearly identifying the vital few activities that drive competitive advantage is crucial for translating strategic vision into business model visualization. Categorize activities as directly contributing to value creation versus critical supporting functions. For core value drivers, list key processes involved in ideating, producing and delivering offerings that underpin the value proposition. Supporting activity examples are financing, production systems, infrastructure and talent acquisition. Structure activites in a hierarchy aligned to business priorities using a RACI matrix to map accountabilities. Quantify resource needs, investments and capability development required to execute per activity at different scales.

Key activities are essential actions needed to deliver your value proposition. These include: Core Processes: Fundamental processes for producing or delivering your product or service, like development or manufacturing. Critical Tasks: Specific tasks crucial for achieving business goals, such as customer acquisition or quality control. Operational Functions: Daily functions required for smooth operations, including administration or financial management. Outsourcing Opportunities: Activities that can be outsourced to optimize efficiency. Improvement Areas: Tasks that can be refined for better performance. Document these activities and place them next to your key resources on the BMC to show how they support your value proposition.

Don't forget that partnerships take time and effort to develop and maintain. If you write down a list that includes "10 strategic partners", is that realistic? Do you really have the time and capacity to develop and maintain10 meaningful, fully engaged partnerships ? Each partner needs to have a corresponding point of engagement inside your company/network - you can't do it all yourself, so if you don't have other colleagues to help be realistic in the number of partnerships you can effectively manage

Key partnerships are crucial relationships with other entities that help you create and deliver your value proposition. They include: Suppliers: Entities providing necessary raw materials, components, or services. Distributors: Partners handling the distribution and delivery of your products to customers. Collaborators: Organizations or individuals working with you on joint projects, research, or product development. Allies: Strategic partners offering complementary strengths, such as marketing or technology support. Consider which partnerships are essential, which are beneficial, and how you can leverage these relationships to enhance your business model.

Here the fundamental question is what are the most important costs in your business model? This will be heavily influenced by your Key Activities and Resources.

As the old adage says "no plan survives the first encounter with the enemy (or in this case the marketplace)" - the essential additional elements to consider are therefore survival and adaptability.

There are several use cases of Business Model Canvas. - Evaluate new business ideas / innovations - Alternate for business planning for new ventures and pitching for investor funding - Understand the competition - Evaluate potential venture investment opportunities - Evaluate potential Mergers & Acquisitions targets

Conduct thorough market research for informed decisions. Integrate ongoing customer feedback to refine assumptions. Maintain flexibility to adapt to market changes. Analyze competitors for strategic positioning. Identify and address potential risks in the business model. Foster a culture of innovation for continuous improvement. Ensure strategic alignment with overall business goals. Regularly validate assumptions through prototypes or pilot programs. Treat the BMC as a dynamic document, subject to iterative updates, to reflect evolving business dynamics and seize emerging opportunities.