The Business Model Canvas is a Lean Startup template for developing new or documenting existing business models. It is a visual chart with elements describing a firm’s or product’s details of cost, it’s customers, revenues and value proposition. It brings in all the aspects of a startup in a single piece of sheet or canvas and helps to evaluate it in a much easier and effective way.
The sections can be described as –
These are the customers you target in your business, people who you create value for. It’s quite important to keep in mind the age group, location, financial ability etc. while you fill thsi section in.
These are the bundle of Products or services that create value for your customers
They are the touch points or links through which you deliver value to your customers. A better channel will ensure better services and hence, customer satisfaction.
This outlines the relationship you’re building while delivering value to your customers. This is quite important and decides whether the customers continue to be with you or not.
These show how and by what pricing mechanisms, your business is capturing revenue. This will decide the profits you make.
This refers to the indispensible resources or the assets you’ll require to build the startup. They refer to the infrastructure you need to build your product.
They are the main activities you need to perform in order to perfectly deliver value. These stay as primary activities in your startup.
These are the partners who’ll help you leverage your business
After knowing these details you can write the cost structure of your company, cost of inputs and infrastructure and revenue collected.
This helps you get your business plan in a single sheet. This not only helps people who startup but other business executives as well.
The video below describes what Business Model Canvas is –