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A business model describes how an organization creates, captures and delivers value. The Business Model Canvas helps to give a shared understanding of which elements to discuss when talking about business models. The nine building blocks are focused around the two core topics of the company's value proposition and the target customer.
It makes sense to start with the two core elements "value proposition" and "customer segments" and build everything around that.
For whom are we creating value? Who are our most important customers? Are we addressing a mass or a niche market? How segmented is the market?
Check out the customer persona template that might help you to effectively segment your target market
What value do we offer? Which customer problems do we solve and how? What are the most important features?
Define your value proposition with the Value Proposition Canvas
Through which channels do we reach our customers? Which different channels are needed for raising awareness, selling and delivering our products, or offering after sales services?
Which relationships do we have with our customers and what do they expect? How automated or personalized is the relationship? What is the relationship between different customers?
For what do customers pay and for what are they actually willing to pay? How do customers want to pay? How do different revenue streams come together?
Which resources are needed to offer our value proposition? (Tangible, intangible, human and financial resources)
Which activities are required to offer our value proposition?
Which key resources are we acquiring from partners? Which key activities do partners perform? Who are our partners?
What are the different fixed and variable costs in our business model? Which resources and activities cost the most and how much?
In case you are still not sure how exactly you should get started, check out this video:
One of the most important innovation templates ever. The business model canvas includes many of the key aspect that you need to be aware of when developing the strategy for your business. Great also to just try out different business models and see what is important for them.
Nice tool but hard to implement changes in the whole business model. Be aware that a lot of resources might be required to reinvent the business model.
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