A lot of Entrepreneurs do not know what a Business model canvas is and why you must create one before starting up (or at any point of time if you have not done this already). It is also useful for top level management to identify new markets, new customers, and new revenue streams.
Here’s Business Model Canvas Explained:
1. Customer Segments
People or Businesses who you are creating value for. This includes paying and non-paying users. Refer Customer Segmentation Model.
2. Value Proposition
Value Proposition for each customer segment. Bundle of products/services that create value for your customers.
Sales/Marketing channels to reach customer segments: Way to deliver the value to the customer.
4. Revenue Streams
Define how the business model captures value. Methods for the business to generate revenues.
5. Key Resources
Key resources required to create value. Infrastructure to create, deliver and capture value.
6. Key Activities
Key things required to create value. Key things that you need to do really well.
7. Key Partners
No Business has all the key resources and can perform all the key activities.Key Partners are the key resources that perform the key activities that the business cannot handle by itself.
8. Cost Structure
Spend, cash flows, profits. Plans and pricing you need to turn up a hefty profit.
9. Customer Relationships
The kind of relationship the business needs to built with its customers. People attract people. How does the business keep the customers engaged and happy?