Business model canvas

The business model canvas is a template with 9 interconnecting sections that describe
how your business works. It captures who your customers are, how you provide products or
services and how you create income.

Use the canvas to discover insights about:

• the customers you serve
• what products and services (value propositions) are offered through what
channels
• how your business makes money.

You can use the business model canvas to understand your own business model (or one of
a competitor).

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Overview
There are 9 sections of the business model canvas.

1. Customer segments: The different groups of people or 5. Revenue: How your business will make money (or not) from
organisations your business aims to reach and serve. List the each customer and for each product or service listed as a
top 3 customer types (or segments). Look for the segments value proposition. List your top 3 revenue streams, noting that
that provide the most revenue. You might have some offering something for free can be part of your revenue model.
customers who don’t pay you directly.
6. Key resources: The most important assets required to make
2. Value proposition: A description of your products and services your business model work. These are the resources your
that create value for a specific customer segment. Value business uses to continually create value sustainably and
propositions also describe the ‘promises’ you make to competitively. The people, knowledge, means, and money you
customers (e.g. they buy lemonade and they get refreshment). need to run your business.
Each customer segment should have a matching value
7. Key activities: The most important things your business must
proposition.
do to make your business model work. These are the things
3. Channels: How will customers access your products or you do and that your business must use to create value. What
services? How do you deliver your value proposition? Channels do you have to do every day to run your business model?
describes how customers find your products and services and
8. Key partners: The network of suppliers and partners that make
eventually transact with your business, whether in person or
your business model work. Key partners are other businesses
remotely.
that allow your business to sustain its business model without
4. Customer relationships: The ways your business establishes having to develop or own everything.
and maintains lasting relationships with your customer
9. Costs: The underlying expenses to run your business,
segments that goes beyond the point of sale.
including the key resources, key activities and key partners.
The cost structure describes all costs you incur to operate your
business model. List your top costs by looking at activities and
resources.

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Instructions
1. Before you start:
• Decide on the format that suits you:
o print a large copy of the template and hang on the wall
o download the template and complete on your computer or project onto a screen.
• Have plenty of sticky notes and pens ready.
• Allow around 45-60 minutes of undisturbed time.

2. Complete the canvas:

a. Start by mapping out your business on a high level – focus on the most important
aspects only. Make sure you look at how your business operates right now. Don’t mix in
ideas for how you want things to work in the future.
b. Link up the different parts – every value proposition needs a customer segment and a
revenue stream.

3. Next steps:
1. Review the canvas. Are you missing anything?
2. Save or take a photo of the completed canvas to review in the future.
3. Discuss with your support network (family, friends and colleagues).

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Business model canvas
• Key partners
Who are your most important
• Key activities
What are the activities you
• Value propositions
What is the value you delivery to
• Customer relationships • Customer segments
What relationship does each For whom are you creating
partners? Which key resources do perform every day to create & your customer? Which of your customer segment expect you to value? What are the customer
you acquire from partners? Which deliver your value proposition? customer’s problems are you establish and maintain? segments that either pay,
key activities do your partners helping to solve? What is the receive or decide on your value
perform? customer need that your value proposition?
proposition addresses? What is
your promise to your customers?
What are the products and
services you create for your
customers?

• Key resources
What are the resources you need
• Channels
How does your value proposition
to create and deliver your value reach your customer? Where can
proposition? your customer buy or use your
products or services?

• Cost structure
What are the important costs you make to create and deliver your value proposition?
• Revenue streams
How do customers reward you for the value you provide to them? What are the different
revenue models?

© Business Models Inc, created by Alexander Osterwalder and published in the book Business Model Generation

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