importance of business model canvas to new businesses
What is business model canvas (BMC)?
is a business technic used to visualize all the building blocks when people start a new business, business model canvas or BMC declares many important keys to make it easy for business owners to in declaring the essential aspects of his or her business
business model canvas or BMC also helps in describing, designing, challenging, inventing, and pivoting your business model.
Using business model canvas help you to have insights about what value propositions are offered through what channels, the customers you serve and how your company will make revenue.
The blocks on the BMC are:
Customer Segments:
Who are your customers and what is their classification, the classification can be gender, age, buyers, sellers or anything related to your business
Value Propositions:
What’s makes your products unique? Why do customers buy from you or use your product or service?
What value do you make to the customers?
Channels: How are you going to sell or deliver your product or service?
Through what or which channels?
Customer Relationships: How are you going to interact with your customers through their ‘journey’?
Revenue Streams: How are you going to get revenue?
Key Activities:
What are you going to do or your system will do to create the value proposition?
Key Partnerships:
What are key partners in business model canvas?
Key Partners are the relationships you make with other businesses, non-consumer entities or governments that help your business model work. It also can be the relationships that your company make with your manufacturers, suppliers etc.
Cost Structure:
What are the business’ major cost drivers?
How are they linked to revenue?
Download our Business Model Canvas (BMC) Template
