Business model canvas

A business model canvas (BMC) is one of the most powerful and long-lasting tools for developing business models, it's doing so by offering visual charts that help you “see” your business. It is divided into Nine “building blocks” that each touch a different aspect of your business.

so, let’s dig into it!

Where do we start? As entrepreneurs, we need to remember that customers and users are the most important part of our business. Moreover, based on statistics, most startups fail because they lack product-market fit. having said that we are going to start we are going to start with-

1. customer Segments-

On some occasions, we will need to split this one into 2 sections: users - the one that is going to use our product and customers - the ones that are going to pay for our product. (A child-oriented product, for example, would have the users be children and the customers be parents.)

Let's ask ourselves a few questions here: Which customers and users are we serving???

Which jobs do they really want to get done?

An in-depth investigation of their geography, social and demographic background, and everything else relevant needs to be conducted, in order to get a full Persona

picture of the users and customers.?

2. Value Proposition-?

What problem are we solving here? What need do we fill? What is the core value that we deliver to our customers?

3. Channels-

How does each customer segment want to be reached? Through which interaction points?

4. Customer Relationships-

What relationships are you establishing with each segment? Personal? Automated? Acquisitive? Retentive?

5. Revenue Streams-

What are customers really willing to pay for? How?

Are you generating transactional or recurring revenues?

Now we are going to move to the next step after we understand what we are doing for whom we are doing so and what value we are providing, so now we are going to figure out what we need in order to achieve it.

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6. Key Resources-

Which resources underpin your business model???

Which assets are essential?

7. Key Activities-

Which activities do you need to perform well in your business model??

What is crucial?

8. Key Partners-

Which partners and suppliers leverage your model???

Whom do you need to rely on?

9. Cost Structure

What is the resulting cost structure???

Which key elements drive your costs?

Now that we have all the pieces connected, we should have a clearer vision of how our business operates.

We can’t understand this without an example, so here is the BMC of our favorite team member Kelly that she wrote when she open her lemonade stand

We are only at the beginning of our journey, so what are you waiting for, let's get started (: