Business Model Canvas Application – Business Model Canvas is a business analysis framework. Swiss business theorist Alexander Osterwalder created it in 2010. Since then, the Business Model Canvas has become one of the most popular management tools for those running a company. Osterwalder’s framework is a questionnaire that makes it easier to assess the state of your startup and find its growth points. Let’s find out what elements the model consists of and when the Business Model Canvas model will be useful for a startup.
A business model is a brief breakdown of the strengths, weaknesses, and development opportunities of a company. The foundation helps you perform these analyzes for a company of any size and age: from a startup to a large, long-lasting business.
Business Model Canvas Application
The Business Model Canvas is a table with 9 cells where each refers to a certain element of the startup. And if you complete the table, you can visualize your business model.
What Is A Business Model Canvas?
1. Key partners. Here you should list all counterparties and also specify how you cooperate. For example, identify who is the key supplier and who is the information partner. This will help you understand what business support you can expect and what partners are missing.
2. Key Activities. In this cell, write down the activities the company does to retain old customers and partners, attract new ones, and increase revenue.
3. Key resources. Here you need to write resources that will help the company increase revenue and attract customers. These can be financial, reputation, information, and human resources.
4. Value proposition. When filling out the BMC template, be sure to include your customer’s problem. What will they get from interacting with your company? How will your product meet their needs? Maybe you offer the best price, or you have the friendliest staff and customers are very happy to contact you. Or maybe your products and services are not particularly different from the competitor but your company is eco-friendly or does charity work. All these details will form your startup’s value proposition.
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5. Customer segments. Here you need to segment your target audience: describe who you work for and which of your customer segments is a priority.
6. Customer relations. This section focuses on how the company interacts with its customers. Maybe you have a personal customer service or offer self service? Do you sell a finished product or work together with the customer? Be sure to consider and describe these details.
7. Channels. How do you communicate with current and potential customers? Maybe it’s social media, in-app advertising, or support services? And how can people buy your products and services?
8. Price structure. Determine what your biggest expenses are. Then decide which ones are key to your business, and which ones you can do without.
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9. Stream of income. What revenue streams does your business have? It could be sales, paid subscriptions, or rent. We recommend mentioning the main sources and criteria for price.
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The Business Model Canvas is a useful tool for building a comprehensive strategy at any stage of your business: it helps define the direction of future development. You can benefit from filling out such a table even on a startup stage when the business is starting or not yet launched. This will help you evaluate your product or service, as well as identify the weaknesses and strengths of your business or idea and correct them on the go. Now let’s look at a real-world example of how to fill out a Canvas for a startup.
Let’s look at an actual case: building a business model for a startup meditation app. The platform will provide short online lessons and breathing practices, and meditation sessions that you can take anytime from anywhere. Let’s imagine that we are in the process of searching for a software development partner and we are creating a Canvas.
What Is A Business Model Canvas? (quick Guide And Examples)
1. Key partners. The key partner in the startup stage is the software development team. They will participate in hypothesis testing, improving and developing the application. Secondary partners are bloggers who promote a healthy lifestyle who will promote the app among their subscribers.
2. Key Activities. To attract new customers, our startup runs advertising campaigns on social networks and offers a free version of the application. To keep existing customers-ensure smooth operation of the app regularly publish useful content about a healthy lifestyle.
3. Key resources. The startup has a small budget for development in the first six months and a fresh team of 5 professionals. Among them are well-known experts in the practice of breathing, so there is also a reputable resource.
4. Value proposition. The application is related to people living in big cities who are regularly stressed. They don’t always have the time and opportunity to attend face-to-face yoga and meditation classes. The application allows you to restore your resources in a few minutes of breathing practice anywhere. What sets us apart from our competitors is the high level of experts who record our video and audio tutorials.
Govtech Business Model Canvas. When A Lot Of Founders Begin The…
5. Customer segments. Young people between the ages of 20 and 35 with medium and high income are interested in the application. There are two key segments of the target audience. The first group of users are people who are subject to nervous tension and are looking for new ways to cope with stress. The second segment includes people who are already interested in breathing practices, yoga, and meditation, and want to study online. The third secondary segment of the audience is young people who just like to try new things.
7. Channels. Communication with customers is done through social networks and the email newsletter, and our startup provides services through the application that users can download from the App Store and Google Play.
8. Price structure. The biggest expense item is the development and maintenance of the application. The second is content: shooting video tutorials and recording audio tutorials from various guest speakers and trainers. The third expense item is advertising. And finally, employee wages.
9. Stream of income. The startup’s source of income includes a paid subscription to the premium version of the app, and revenue from ads shown in the free version.
How To Learn Improving The Business Model Canvas
Business Model Canvas shows that with a limited budget and app monetization, you need to invest in improving the app and creating high quality video and audio tutorials. The budget for advertising in these conditions can be reduced by expanding the list of barter partnerships with bloggers: they advertise our product on social networks, and we invite them to our shows so that our audience can learn about them. Since the product is still new on the market, most users will not risk buying a paid subscription right away; they need to understand the value of the product. So at first, you should also focus on the app’s advertising monetization model.
We once worked on a similar project: back at the beginning of the pandemic, we developed an application for online meditation classes. We don’t know if the client has created a business model Canvas template but it would definitely be useful. We managed to develop the app in 5 months: see how!
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You can start creating Business Model Canvas, even when your business idea is fresh and you don’t know the market well. This is useful for a startup for several reasons:
Business Model Canvas — Lyft. Lyft Business Model Canvas And Value…
1. You will get a clear vision. It’s good when information about target audience segments, UVPs, and monetization options are written down, and not just stored in your head. Putting everything in words on paper or in a Word document is more efficient.
2. The defined business model will make it easier to communicate with colleagues, partners, and investors. You will not have to explain your own thoughts in a confusing way – you will be able to show clear thesis and facts. The foundation is an easy way to introduce your business to people.
3. Canvas will help you find weaknesses even before you create a product. When working with a framework, you hit on questions that you might not have thought deeply about in the beginning. For example, who are your key partners, and how will your customer relationships be built.
4. Canvas is a dynamic frame, so you don’t need to fill it once and for all and put it in a frame. Indicate, for example, that there are few partners and they are not reliable – this will show that you urgently need to look for new ones. And when you find them, add them to the table.
Pdf] Business Model Canvas For Smart Tailor Platform
5. There are many more risks when your company is just starting, and you need to calculate each step carefully. Some large well-known organizations that have long established themselves in the market may not need a Business Model Canvas as much as a startup does.
6. Describing a business model in the foundation of the startup stage is a good way to define a key element – the essence of your business model. And
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