Over five million people use the Business Model Canvas. So, how about you?

Business Model Generation

While Alexander Osterwalder was working on his PhD on Business Model Ontology from 2000 to 2004, he could not have suspected that this model, which later on led to the Business Model Canvas, is now being used by more than five million people worldwide. The book Business Model Generation (2009) is an absolute bestseller with one and a half million copies sold. His company Strategyzer is a very successful startup.

The strength of the canvas

In order to understand the strength of Business Model Canvas and why it has become so popular in such a short time, I advise everyone to buy & read the book and above all apply to their own practice. The proof of the pudding is in the eating, isn’t it ?! For those who are impatient, I will briefly explain the Business Model Canvas.

Strategic management tool

The Business Model Canvas is a strategic management tool. A tool that every entrepreneur must have in his or her toolbox. In addition to familiar business tools, such as the SWOT, Blue Ocean Strategy and the Balanced Scorecard. But also among other innovative tools, such as Lean Startup and Customer Development.

Definition of a Business Model

The definition of a business model is simple: it describes how an organisation creates, delivers and preserves value. The Business Model Canvas is a shared language for describing, visualising, researching and, in most cases, changing business models (and it is literally a canvas).

Starting point for innovation

The Business Model Canvas is a starting point for strategy and innovation. It is used to identify and improve existing business models, but also to design and test new business models. Worldwide business people use it, in every conceivable industry, from startups to large enterprises. Undoubtedly also suitable for your business.

Blueprint for strategy

The Business Model Canvas consists of nine building blocks, which covers the four main areas of a business: customers, offer (products / services), infrastructure and financial viability. It is a blueprint for strategy, to be implemented through organisational structures, processes and systems.

Business Model Canvas Workshop

Identify you Business Model clearly in just one day with the Business Model Workshop. That’s the starting point to improve your business model, to look for new growth models and attractive revenue models. In short, to set out your strategy for the coming years. Do you want to work on the future of your company? Then read on.

The 9 building blocks of the Business Model Canvas

1. Customer Segments

Groups of people or organisations that you try to reach and for which you want to create value with tailor-made value propositions.

4. Customer Relationships

Customer Relationships indicate which relationship is built and maintained with each customer segment. It makes clear how you win and retain customers.

7. Key Activities

The most important activities that you have to perform in order to perform well. What do you have to do to run your business model?

2. Value Propositions

Value propositions based on the collection of products and services that create value for a customer segment. There is a reason it is called value proposition;)

5. Revenue Streams

Income flows are the result of value propositions, which are successfully sold to your customers. It is about the price that your customer is willing to pay.

8. Key Partners

The key partners from the network of partners who deliver resources and activities from outside the organisation. Ask yourself: which partners are crucial for your business?

3. Channels

Channels describe how you transfer your value proposition to a customer segment via communication, distribution and sales channels.

6. Key resources

Key resources are the people, assets, knowledge and money you need to run your business. Here you often find your distinctive advantage!

9. Cost Structure

Cost structure describes all the costs that incur when executing a business model.

Profit

Ok, one more: Profit (not entirely unimportant). Profit is calculated by subtracting the total costs according to the cost structure from the total income according to the revenue streams. With a good business model, this is positive;)

Three tips when applying the Business Model Canvas:

1. Start by mapping out your business to the highest level. Limit yourself to most important issues. Do not focus on the nifty details.
2. Make sure that all building blocks are connected to each other. A building block that is not connect, often does not belong in your business model. See also tip 1.
3. Make a clear distinction between the existing business model and a future new business model. Prevent mixing them.

Checklist for assessing your business model

Finally, a checklist to assess whether you have a powerful business model (or not):
– How easy (or difficult) is it for customers to switch?
– Does your business model deliver one-off or recurring sales?
– Do you earn before you make costs? Or do you first have to make a lot of costs?
– Do you have a substantially different and better cost structure than your competition?
– How much of the work is done by others? Free or paid?
– To what extent is your business model protected from competition?
– How scalable is your business model? Can you easily grow?

Have you answered one or more questions with ‘no’? Then it is time to have your business model checked. How? With a business model workshop!.

Business Model Workshop

Identify you Business Model clearly in just one day with the Business Model Workshop. That’s the starting point to improve your business model, to look for new growth models and attractive revenue models. In short, to set out your strategy for the coming years. Do you want to work on the future of your company? Then read on.

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Innovation

We are experts in  business model innovation and value proposition design. We train and coach entrepreneurs, who want to grow their business.

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