Embracing Business Model Canvas for the Success of Your New Business

Many people dream to own a business even when they have a job or not. However, starting a business can be hard if you don’t have a good business plan.

Did you know that having a business model canvas before starting a business can dive you to achieve your business goal? I once attended a business training and the facilitator talked about an interesting topic that I would like to share with you.

Business model canvas is the business tool used to foresee the building blocks when you want to start a business. This includes; customers, market route, value proposition, and finance.

He further introduced 6 building blocks that describe and assess a model canvas. The following are the 6 building blocks that he mentioned;

Customer segment

This is the process of separating customers into different sets that reflect their similarities in each set. It also involves creating a good relationship with your customers. The relationship can be attained through effective responses to customers, professionalism, and good communication skills.

Revenue streams

This is the way the business gets financial gains through the business value proposition. Business revenue can be gained through different ways such as fixed rates, servicing fees, pay per product, and many more.

Key resources

These are the main resources that are needed in your business. Before you start a business, you have to analyze the kind of resources you need.

Key activities

These are the main activities and products that have been planned to be undertaken in the business to achieve the business value proposition for your customers.

Key partners

It entails the key people that you have involved in your business who are not within the internal structure of your business to enable you to meet your activities and deliver good customer services.

Cost structure

These are the costs in form of money that the business has to incur to operate and achieve its key activities.

The goals of the business model canvas are to help us understand the business model in a straightforward and structured way. This leads us to insight about the customers you serve, what value propositions are offered through, what channel, and how your company makes money.