Have you heard about Business Model Canvas, the Canvas model or the Canvas methodology but don’t know how to use it? Do you want to know the tool that will make it possible for you to work on your business model in a practical, interactive and simple way? Do you want to know examples of canvas model?
This is your post!! because I have prepared a video where I explain it to you in detail, block by block, each of the 9 that make up the business model canvas. In addition, I have prepared two application examples so that you can put it into practice from the first moment.
It is one of the most used tools in the Lean Startup methodology if you have an idea and want to design your business model in a more practical way and work and innovate on it. It will help you if you need to write a project report or business plan, explaining all the sections that make up the business model quickly and easily.
What is the “Business Model Canvas” and 2 Examples to understand it perfectly
I have recorded this video where I explain in detail what the business model canvas is, how it is used for a specific project and I also show you 2 application examples for two different businesses.
Origin of the business model canvas
Although there were already people working with similar concepts before, the Business Model Canvas is a very interesting tool, which came to light a few years ago (2010) thanks to the book “ Business Model Generation” written by Alex Osterwalder and Yves Pigneur .
This book is characterized as a guide for ” visionaries, revolutionaries and challengers ” who want to challenge traditional business models and design the companies of the future. It also provides a large number of examples of application of the canvas model and presents in a simple way the necessary tools to build yours.
Benefits of using the Business Model Canvas
We are going to see the main benefits of using this canvas for your next entrepreneurial project or for your startup.
- The cavas method is a very practicaltool (canvas) since it allows you to modify everything you want about it as you progress in its analysis and test the most risky hypotheses that put the viability of your business at stake. (In the video I showed you two examples of canvas models).
- The canvas model is very simple, a very intuitive and fun canvas. Print it in XL size and work with post-its and colored markers.
- Allows you to work as a team: Hang the canvas on the wall and make the canvas model visible to everyone. Remove the tables and work in a group in a very interactive and dynamic way.
- Visual: Allows you to globally see ALL the important aspects that make up your business model canvas. I recommend that you leave the canvas exposed once the analysis is finished, so that all members have a clear overview of the company at a glance.
How is it filled and what is the Canvas model for?
It is divided into nine modules, the right part is the one that refers to external aspects of the company, the market, the environment. The right part of the business model canvas is made up of the following blocks: market segment, value proposition, channels , relationship with clients and sources of income;
On the left side of the business canvas, the internal aspects of the company are reflected, such as key associations, key activities and resources, and cost structure.
Canvas model template or Business model Canvas and How to use the Business Model canvas.
Leave the sheets of paper, computers, work tables… and print the canvas in XL size and stick it on a wall, visible to everyone. Take post-its and colored markers. Use a post it to reflect an idea, a concept or a feature.
This way of working will allow you to modify EVERYTHING you want, move post-its, remove, add, or change as you progress in your analysis.
The Business Model Canvas has a work order. It should not be filled without rhyme or reason.
Below I explain the order in which the blocks (modules) of the canvas are completed, following the canvas methodology.
To make a canvas, the canvas modules on the right side are first filled .
These blocks refer to the external part of the company, to the market. The fact that this part is filled in initially is no coincidence, the reason why you work in this way is that you must first know and analyze the environment in which your company operates or will operate, initially identifying your customer segment, what is what you are going to offer them, how you are going to reach them, what relationship you are going to maintain with them and finally how they are going to pay you.
STEP 1 Print the canvas:
As we have already mentioned, print the canvas model in XXL size and stick it on a wall. Take post-its and colored markers. And get to work! In this case I am going to explain the canvas using the example of the canvas model developed from Imaginarium, the toy store.
STEP 2 Reflection of the right part of the canvas. The market one:
Focus on the right side of the business model canvas and reflect on…
- Customer segment :To determine your market niche, ask yourself who you create value for! To analyze this block, there are specific work canvases that we will explain in other posts, such as the value proposition canvas, the person canvas or the well-known empathy maps . Imaginarium: Parents with children up to 10 years old
- Value Proposal:To define your value proposition, it is critical to know what problem you help your customers solve. Imaginarium: Education and play in a single concept
- Channels:Identify what will be the means by which you are going to get your value proposition to your target customer segment. Sometimes your online marketing strategy will be key in this section and other times less. Imaginarium: own stores and franchise model
- Relationship with clients :Reflect on what your relationship with clients will be. Where does this relationship begin and where does it end? Also your strategy in Social Networks and Online Marketing will be key in your relationship with customers . Imaginarium: Personal assistance and call-center to provide after-sales service
- Income stream:You have to be clear about how you are going to earn money. At the beginning put all the options that come to mind and later test how and how much your target client is willing to pay (sale of assets, subscription, advertising…) Imaginarium: Sale of toys
STEP 3 Analyze your own company internally on the canvas model:
Once you know the environment of your company, adapt the internal pieces (blocks) to provide the “value proposition” detected in the best possible way; Create alliances with the necessary agents, focus on the core activities of your business and think about what you need and what the cost structure is. That is, it analyzes;
- Key Resources:What do you need to carry out the activity of your company? Resources can be physical, economic, human or intellectual. Imaginarium: Shop, toys, staff.
- Key Activities:What are the core activities for your company. It is important to be clear about this block because it is what your company will do, the rest, which adds less value, you can outsource. Imaginarium: Design, production and sale of educational toys
- Key Associations:List the agents you need to work with to make the business model possible (strategic alliances, suppliers…) Imaginarium: suppliers, franchisees…
- Cost Structure:After analyzing the key activities , key resources and key associations, reflect on the costs that your company has. Imaginarium: Personnel, fixed assets, design and production of toys…