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The Business Model Canvas

The Business Model Canvas (view video) is a tool for mapping your business model.  It is a visual one-page document containing nine boxes that represent the nine fundamental building blocks of a business plan.
 
Biz Model Canvas
Advantages of the Business Model Canvas include:
 
  • A simplified overview of the business model, devoid of the details in a traditional business plan. 
  • A visual model easy to refer to and be understood by anyone.
  • Easy to edit and can be easily shared with employees and stakeholders. 
  • Can be used by large corporations as well as startups with just a few employees.
  • Clarifies how different aspects of the business are related to each other. 
  • Can be used as a template to guide a brainstorming session on defining your business model effectively.
  • Helps identifies opportunities for innovation in the business model.
 
The Business Model Canvas offers an easy way to understand the relationship of the nine core elements of a business model to each other.  The right side of the canvas focuses on the customer or the market (external factors that are not under your control) while the left side of the canvas focuses on the business (internal factors that are mostly under your control).  In the middle, you get the value propositions that represent the exchange of value between your business and your customers.
 
Click on individual sections of the canvas model below for a more detailed description of each section.
Key Partners Key Activities Key Resources Value Proposition Customer Relationship Channels Customer Segments Cost Structure Revenue Streams

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