You need a straightforward way to visualize and help you understand a business model. With a Business Model canvas you can be led through the many different areas of planning and implementing business strategies and get clear insight on value propositions, resources available, etc.
Understanding your business is important, understanding your competitor’s business is just as necessary.The business model canvas exists to allow organizations to plan, deliver and retain value.
Before you get started on your Business Model Canvas check out our tips:
- Allow yourself 1 HR of uninterrupted time, please no more than that! You have work to do!
- Get a handful of your team together to help you plan . The right personnel is important here.
- Find a space to limit distractions are you work through the model
- Be ready to get creative and think in depth!
- Don’t fix future with past/present
- Each departments within a business may have a different model.
- If you don’t know, guess!
Working through a Business Model Canvas
Always begin working through model by starting with the Value Proposition and draw understanding to what needs you are satisfying, and pinpoint what value your audience is receiving. What is it that you do?
After you’ve established the value proposition of your idea, the rest is left up to priority. Tackle what you deem to be the most important aspects of the business model. As you go through the exercise, connect the blocks. If you’re unsure of what the sections mean see the list below:
VALUE PROPOSITION — WHAT DO YOU DO?
What needs are you satisfying, what values do you deliver to your audience
KEY ACTIVITIES — HOW DO YOU DO IT?
What key activities does your value proposition require? What activities are most important for your distribution channels, customer relationships, revenue streams, etc.
KEY RESOURCES — WHAT DO YOU NEED?
What key resources does your value proposition require?
KEY PARTNERS — WHO WILL HELP YOU?
Who are your key partners/suppliers? What are the most important motivations for the partnership?
COST STRUCTURE — WHAT WILL IT COST?
What are the most important costs in your work? Which key resources/activities are most expensive?
REVENUE STREAM — HOW MUCH WILL YOU MAKE?
For what value are your audiences willing to pay? What and how do they recently pay? How would they prefer to pay? How much does every revenue stream contribute to the overall revenues.
AUDIENCE RELATIONSHIPS — HOW DO YOU INTERACT?
What relationship does the target audience expect you to establish? How can you integrate that in to your work in terms of cost and formant?
DISTRIBUTION CHANNELS — HOW DO YOU REACH THEM?
Through which channel does your audience want to be reached?
AUDIENCE SEGMENTS — WHO DO YOU HELP?
Which groups are you creating value for? Who is your most important audience?
Once you’re done…
At the conclusion of the initial planning phase do not be afraid to discuss what you developed with others. Try to find the missing pieces that may have been left out prior to the review. Is there opportunity to scale your business? If so, how much? How will you money will you need? Do you spend your budget before you’ve earned the revenue? How much of the work should be done in house verses out?
Iron out the details and you are on the way to turning ideas in to action!
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