What is the Business Model Canvas?

The Business Model Canvas (BMC) is a valuable tool for both startups and existing businesses. It helps in clarifying, designing, and reinventing business models. By breaking down the business into key elements like value proposition, customer segments, and revenue streams, the BMC provides a clear, concise view of what drives the business and where there might be opportunities for improvement or innovation. It's especially useful for aligning team members on the business's core objectives and strategies, which is vital for both new ventures and established companies looking to stay competitive or expand.

Business model canvas is one of the best tools for ideating on paper how a business model will look like. Creating a business plan can be a daunting task for entrepreneurs but with BMC you can cover the most important elements visually in a fun way. You may collaborate with your co founders and other stakeholders to get their perspective.

- Value Proposition (Value you are creating for the customers. Example: Delivering quality food faster. - Customer Segments (Segments of customers you are serving). Ex: Couples with income> $30k & no time to cook. - Channels (How do you deliver value to customers). Ex: Mobile app. - Customer relationships (Methods to retain/ grow customers). Ex: Customer support, offers. - Revenue streams (How do you make money) Ex: Delivery fees. - Key resources (capabilities needed to deliver value) Ex: Mobile app, branding. - Key activities (Actions to create & deliver value) Ex: Food delivery, restaurant onboarding. - Key partnerships (partners to build value) Ex: Restaurants. - Cost structure (Costs for operating business) Ex: Delivery, tech.

Things i do while making BMC 1-Start is from the bottom left to right, i.e.from cost structure to key partnerships, and spend time on each by understanding the core objective. 2-Print out the same, paste it on the wall, and use sticky notes to jot down all possible answers for each. 3-Rate the impact of each as high, medium, and low, with feasibility if required.

Spend some time discussing with your co founders or core team members to brainstorm the intent and purpose before you start. Once you start, iterate and sketch as many times as possible to build more clarity. Meet your customer segments and validate your assumptions with them. Iterate if needed.

Starting the Business Model Canvas (BMC) by focusing on the problem and existing alternatives is a strategic approach: 1. Identifying the Problem: Understanding the core problem your business aims to solve is crucial. This clarity helps in tailoring all other aspects of your business model to effectively address this problem. 2. Existing Alternatives: Analyzing current solutions available in the market gives insight into the competition and potential gaps in their offerings. This knowledge helps in differentiating your value proposition. 3. Customer-Centric Approach:Starting with the problem encourages a customer-centric mindset. You're focusing on what the customer needs or lacks, rather than what you can offer.

Do not get into analysis paralysis i.e. over analysing. Sometimes, it's important to jump off the cliff and later figure out how and when to open the parachute.