Hello friends of Hive!
If I had to chose the single most important tool I have used in developing my business, I would have to say that it’s my business model canvas.
It’s an easy but amazing tool that will help you describe, discuss, improve, and invent new business models in one, condensed image on a page.
The concept of the business model canvas was developed by Alexander Osterwalder, a Swiss business consultant, entrepreneur, speaker, and co-founder of Strategyzer
The thing that makes the business model canvas so powerful, is that it is a “live” document. In other words, you can add, delete or change one of the elements as soon as you develop an idea that better suits your business.
The 9 elements of the business model canvas - the building blocks of your business model
My recommendation is to make a template for your business model canvas like this one
write down each element on a sticky-note or simply on a piece of paper. This will allow you to easily change or discard elements as you are building it. This is a list of things you need to consider:
Customer segments - all the people or organizations for which you are creating value.
For each segment, you have a specific value proposition. These are the products or services that create value for your customers.
Channels - the touchpoint at which you interact with customers and how you deliver value.
Customer relationships - outlines the type of relationship you are establishing with your customers. Ask yourself “how do I get customers, keep them, grow them?”
Revenue streams - how and through which pricing mechanisms your business model is capturing value
Partners - Good business is not done alone. Ask yourself “how will I leverage my business?”
Key activities - what needs to be done to make the business model work?
Cost Structure - defines all the costs and expenses that your company will incur while operating your business model. This final step in the process is important, because it will help your team decide whether to pivot or proceed. There are two main categories of cost structure: value-driven and cost-driven
Set aside an hour to develop the first draft of your business model canvas. Come back to it when you have more information, or when you’ve come up with something that might need changing, and when you think you’ve finished, name it version 1.0. Whenever you feel something can be changed or improved, pull out your business model canvas, make the changes and rename it as version 1.1. You will realize how your business model evolves and improves with your understanding of it.
image source: https://merlin-ict.eu/what-is-a-business-model-canvas/
references:https://www.strategyzer.com/canvas/business-model-canvas
Download business model template HERE
Have an awesome week!