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  The Business Model Canvas (BMC) has presented start-ups and existing businesses with a great strategic management template for developing new business models and documenting existing ones. It is therefore useful and important to understand how to use and leverage it for business success.
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The Business Model Canvas was proposed by Alexander Osterwalder based on his earlier book, Business Model Ontology. It is a nine-building block one-page visual chart template for documenting new or existing business models. Elements of this chart define a business or its product’s value proposition, customers and finances. When you are already in the know what your business model is, this tool will help you communicate it easily and it serves a lot of purposes. Below is a sample  BMC:
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The following are some of the questions that will help you in filling your business model canvas:
  1. Value Proposition: What Product or Service (Unique Value Proposition – UVP) are you offering? What core value do you deliver to the customer? Which customer needs are you satisfying?
  2. Customer Segment: Who is your customer? Which classes are you creating values for?
  3. Customer Relationships: How do you acquire customers? After you have landed a new customer, how do you plan to relate to that customer and manage the relationship? What relationship does the target customer expect you to establish? How can you integrate that into your business in terms of cost and format?
  4. Key Activities: What key activities does your value proposition require? What activities are important in production, distribution channels, customer relationships, revenue stream, etc.?
  5. Distribution Channels: Through which channels do your customers want to be reached? Which channels work best? How can they be integrated into your and your customers’ routines?
  6. Key Partners: Who are your key partners/suppliers? What are the motivations for the partnerships?
  7. Key Resources: What key resources does your value proposition require? What resources are more important in distribution channels, customer relationships, revenue streams…?
  8. Cost Structure: What are the costs in your business?
  9. Revenue Stream: How do you charge your customers? What value are your customers willing to pay for? What and how do they currently pay? How would they prefer to pay? How much does every revenue stream contribute to the overall revenues?
What To Do: Go For It! Develop your business model canvas if you do not have one yet. If you do, you may want to see if there is a need for remodelling or review. You can also discuss this with your business development support consultant.
Got a suggestion? Contact us: editor@connectnigeria.com
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This article was first published on 8th October 2021

funke-medun

Funke Medun is a World Bank trained business development support (BDS) services consultant, a licensed HR practitioner, an international development consultant, a seasoned professional with several years’ experience in banking, consulting, human resources, training, executive coaching, and entrepreneurship development.

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