The business model canvas is a modern alternative to a traditional Business plan.
A business model canvas is made up of 9 blocks that have key details about the business, its customers, and how the business provides value to them.
The left half of the canvas contains Back of the house details on how the business will operate. The right half of the canvas contains Front of the house content about who the customers are and how the business will engage and interact with them. The two halves meet in the middle at the value propositions section.
The 9 sections of the business model canvas are::–:
- Customer segments the groups of people a business aims to serve.
- Customer relationships: The interactions and strategies around those interactions to help the business Attract, develop, and retain customers.
- Distribution channels: How a business reaches customers to create awareness, deliver value, and provide support.
- Value proposition How the product or service creates value for the customer.
- Key activity The activities that a business needs to do well to make money and meet customer expectations.
- Key resources The resources a business needs to deliver value. There are four types of key resources: Financial, intellectual, human, and physical.
- Key partners The partners that help a business deliver its value proposition to customers.
- Cost structure The fixed and variable costs of a business and whether it is a cost-driven or value-driven business.
- Revenue streams How the business earns revenue from customers by delivering value to them.