The value of Business Model Canvas for your business
The Business Model Canvas helps to establish the business model of a company. Whether for an existing business or for a new business creation, especially a startup, this tool is really effective. It can also be applied for the launch of a new product or service.
What is a Business Model Canvas?
A Business Model Canvas is a tool in the form of a document that allows the company to synthesize its strategy. This strategy can be for the launch of a new product, a new service or simply the creation of a company. Recognized throughout the world, this tool is also a guarantee of quality for investors, bankers, partners, customers or future employees.
Alexander Osterwalder’s business model canvas is a real steering tool. If you’re wondering how to write his model, it’s very simple. It is presented in a table divided into 9 categories, all linked to each other: key partners, key activities, key resources, value proposition, customer relationship, channels, customer segments, cost structure and revenue streams. It allows to build its offer and its feasibility by identifying the strengths and potential customer segments where the company can position itself to create value. The advantage of this method is that it is relatively simple to carry out, especially since it allows to have a global view very quickly. Moreover, it allows a collaborative study with your employees, or with your collaborators if you are an entrepreneur, and therefore to identify strategies and structure them to generate revenues. Indeed, a start-up project takes time because it is important to think about everything, including the different value propositions and the financial plan to know if the business strategy will be viable. This method is therefore effective because it is synthetic and gives an overall view of the strategy. It is also important to carry out a market study beforehand in order to define a good positioning in relation to competitors.
The ideal would be to have an innovative business project to attract a larger number of potential customers.
As you will have understood, creating a good business requires a lot of preparation at the start. Whether it is for the creation of your future company, a new project or to develop your business, this tool will be a great help to you to think about everything.
It is also necessary to review your business model over time because the market changes and it is important to know if its strategic axes are still a good business model and that its sources of income are always the same. You also need to review your financial forecasts and update them to see if you are still capturing value and making profits.
Create a Business Model Canvas
This involves answering a set of questions in 9 themes. These 9 themes make up your Business Model. It is recommended that you present the document in the form of a table with the above structure.
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Key Partners
Determine the key partners that will help develop your company’s offering and that will be in line with the chosen business model.
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The key activities
The type of activities to be put in place to achieve value creation. Ex: community management.
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Key ressources
Human, financial and material resources needed to implement your project.
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The value propositions
The competitive advantage that this project brings and that it will allow consumers to directly see your added value, in order to meet a specific need
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The customer relationship
Means of communication with your current target and with your prospects: media, non-media?
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Customer segmentation
Target customer segments according to their needs and the offer proposed: profiles, location, CSP.
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Distribution channels
Places and methods of distribution: pure player, click and Mortar, brick and Mortar, network marketing: direct sales based on recommendations (e.g. Tupperware meeting)
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Cost structure
What are the project costs? What are your variable and fixed costs? Your break-even point? Break-even point?
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Revenue streams
What value are your customers willing to pay for? How will they pay for your offer (e.g., flat rate, fixed or variable price)?
Do you need personal support to build your Canvas Business Model? Our Habefast agency will follow you from start to finish to develop your business model.