Business model canvas - effective starting strategy for every startup! - Kounselly
Business Model Canvas

Business model canvas – effective starting strategy for every startup!

The Canvas model is a simple yet effective strategic management tool that helps entrepreneurs identify and test key elements of their business plan. This model is considered a starting strategy for every Startup, because it helps save time and costs, focus on the most important factors, and test business ideas before investing. Let’s explore this special model through the information below.

Business model canvas

Business model canvas is a strategic management tool that helps businesses identify and analyze important factors in their business operations. This model was proposed by author Alexander Osterwalder – a Swiss consultant and businessman, in 2008 in the book Business Model Generation.

The Business model canvas includes 9 main building blocks, which are: value proposition, customer segments, channels, customer relationships, revenue streams, key resources, key activities, key partners and cost structure. By using the business model Canvas, businesses can better understand their market, customers, competitors and opportunities, thereby making appropriate and effective strategic decisions.

Some large corporations have applied the business model canvas in their business, for example: Amazon, Uber, Airbnb, Netflix, Spotify and Apple, etc. These corporations have taken advantage of the Canvas to create valuable values, providing unique and differentiated value to its customers, as well as optimizing its resources and costs. The model canvas has helped these corporations remain competitive and innovative in an increasingly volatile and harsh market.

9 key elements in the Business model canvas

The Canvas model is a useful tool to help businesses define and present their business strategy in a clear and concise way. The Canvas model includes 9 key elements, divided into two groups: internal groups and external groups.

The internal group includes 4 elements related to the internal operations of the business, including:

  • Key partners: people or organizations that support the business in providing value to customers, such as suppliers, agents, distributors, co-owners, etc.
  • Key activities: the most important actions a business takes to create value for customers, such as production, marketing, sales, distribution, etc.
  • Main resources: the most important resources that businesses use to carry out main activities, such as human resources, capital, equipment, technology…
  • Cost structure: the biggest costs that businesses must bear to maintain business operations, such as raw material costs, labor costs, management costs, etc.

The external group includes 5 factors related to the business’s market and customers, including:

  • Customer segments: target customer groups that businesses want to serve and create value for, such as gender, age, income, interests, etc.
  • Value proposition: the benefits that a business brings to customers through its products or services, such as quality, price, convenience, safety…
  • Distribution channels: ways that businesses reach and deliver goods to customers, such as direct sales, online sales, sales through agents…
  • Customer relationships in the canvas model: ways businesses build and maintain relationships with customers to attract and retain them, such as personal interactions, automated interactions, etc.
  • Revenue streams: sources of income that businesses earn from providing value to customers, such as product sales, service sales, subscriptions, advertising, etc.

Benefits of using the Business model canvas

By using the Canvas model, businesses can better understand the strengths and weaknesses of their business strategy, as well as adjust and improve over time. The Canvas model also helps businesses avoid wasting time and money on business ideas that are not feasible or have no potential. Here are some key benefits:

  • Canvas model helps businesses see the overall business operations clearly and logically. The Canvas model helps businesses identify the key factors to create value for customers and earn profits.
  • Canvas model helps businesses quickly adapt to the market and business environment. The Canvas model allows businesses to change and update blocks according to market needs and trends, helping businesses remain competitive and innovative.
  • Canvas model helps businesses communicate and present business ideas effectively and easily. The Canvas model can be drawn on a large piece of paper or a whiteboard, helping businesses present business ideas to stakeholders, such as investors, customers, partners or employees, in a concise and vivid way.

Business model canvas template

The business model canvas template is a useful tool to help you effectively evaluate and analyze your business model. This template includes specific questions for each element in the Canvas, helping you identify strengths, weaknesses, and improvement opportunities for your business. Below is a detailed Business Model Canvas template in an appropriate analysis in order:

Customers segment

Who are you targeting?
What are their needs and wants?
What makes them different from other customer groups?

Value proposition

What value do you provide to customers?
How are your values different from your competitors?
Why should customers choose you?

Distribution channels

What channels do you use to reach customers?
Which channel is most effective?
What can you do to improve the efficiency of your distribution channels?

Customer relationships

How do you build relationships with customers?
What do you do to retain customers?
What can you do to improve customer experience?

Revenue stream

How do you make money?
What is your main source of income?
What can you do to increase revenue?

Key resources

What resources do you need to operate?
Which resources are most important?
What can you do to optimize resource use?

Key activities

What activities do you need to perform to provide value to customers?
Which activity is most effective?
What can you do to improve performance?

Key partners

Who do you partner with to provide value to customers?
Which partnerships are most important?
What can you do to improve your partnership?

Cost structure

What expenses do you have?
Which expense is the biggest?
What can you do to reduce costs?

By answering the questions in the business model canvas template, you can:

  • Get an overview of your business model.
  • Identify the strengths and weaknesses of the business model.
  • Identify opportunities to improve operational efficiency and increase revenue.

You can download the free model Canvas analysis template here:

Business model canvas is an invaluable tool that helps entrepreneurs sketch out and evaluate their business ideas effectively. This model helps you identify important factors in your business model, thereby devising an appropriate strategy for a successful start. If you are cherishing a business idea, use the Canvas model to start your entrepreneurial journey.

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