The Business Model Canvas is an important tool developed initially by Osterwalder, Pigneur et al into a book entitled “Business Model Generation“. Note the following YouTube descriptions: “The Business Model Canvas Explained” and “The Top 10 Business Model Pitfalls“.
Reiteratively working through each section of the canvas by talking with experienced customers and partners enables a process for evolving and refining the original canvas into a more robust business idea.
The key sections of the Business Model Canvas include:
- Value Propositions: Identifying products and services that meet customer needs.
- Customer Segments: Identifying the company’s types of customer segments.
- Channels: Identifying effective channel partners to distribute the company’s value proposition.
- Customer Relationships: Identifying which customers the company is trying to serve.
- Revenue Streams: Identifying how the company makes income from each customer segment.
- Key Resources: Identifying resources needed to create value for the customer.
- Key Activities: Identifying activities to execute a company’s value proposition.
- Key Partners: Identifying ways to optimize operations and reduce risks such as buyer-supplier relationships .
- Cost Structure: Identifying the company’s most important monetary operations.