The Business Model Canvas is a one-page chart of nine blocks showing how a company creates value, delivers it to customers and makes money. The blocks are customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships and cost structure. It was popularized by the book Business Model Generation.
Step by step
- 1
Start with the customer and the value
Write down the customer segments you serve and the problem you solve or the benefit you offer for each one.
- 2
Channels and relationships
How customers find you, buy and receive, and how you keep them: personal service, self-service or a customer community.
- 3
Revenue streams
How customers pay and how much: a one-time sale, a subscription, a commission or usage fees.
- 4
The operating side
The key activities and resources the model cannot work without, and the partners and suppliers you depend on.
- 5
Cost structure
The largest costs the model brings with it, then compare them with revenue: does the model make money if it works as you expect?
- 6
Test your assumptions
Every block is an assumption until a real customer or an actual figure proves it, so update the canvas whenever you learn something new.
Filling the nine blocks with general phrases turns the canvas into a form with no value. Every block should be specific enough to test, and consistent with the other blocks.
- business model canvas 9 blocks explained
- business model canvas example for a small business