Create your Company's Business Strategy with the Canvas Model

It is said that visualization helps us untangle things and understand them better. Well, business attire sums up the most important things about your company on a single sheet of paper. Can you imagine being able to see all the trends that shape and impact your business?

In this article we will explain everything about this tool and at the end you will be able to download the PDF and business model for free.

What is the business model canvas?

The Business Model Canvas Diagram is a fundamental tool in the development of any business. It helps you understand your business and its key aspects, which is essential before making important decisions or devising a marketing strategy.

In this article we will explain the different parts of this tool and, additionally, we will leave you a sample to download at the end.

When did the Business Model Canvas appear?

In 2010, Alex Osterwalder and Yves Pigneur, the fathers of the Business Model Framework, presented it in their book "Business Model Generation". This has been one of the books that has revolutionized the great universe of strategic innovation. A great work that compiles very useful tools that help us analyze our business and discover opportunities that we might never have thought of exploiting. If you have never heard of this book, we suggest you give it a read. It's worth it!

What does the Business Model Canvas Analyze?

This analytical method helps us combat the white paper syndrome. That is, that feeling of vertigo that comes over us when we are faced with having to work from scratch, because we don't know where to start.

The Business Model Canvas makes our work easier, as it tells us the questions to ask about the 9 key elements that we must analyze individually to obtain an overview of the current activity of our business.

We can say that this canvas is divided into 4 parts: on the left we analyze the most tangible aspects of our activity, on the right the relationship we have with the target audience, then we reflect on the most economic aspect of our business and in the middle we analyze our value proposition.

Parts of the Business Model Canvas

1. Customer segments

This part of the business model focuses on identifying and defining the different customer groups that the business is targeting. It is important to understand the needs and preferences of each customer segment in order to create an effective value proposition.

2. Value proposition

The value proposition is what makes the business attractive to customers. This part of the business model focuses on describing the products or services offered and how they address customers' needs and wants.

3. Channels

Channels are the means through which customers are reached and the value proposition is delivered to them. This part of the business model focuses on defining the most effective channels to reach the different customer segments.

4. Relationship with customers

Customer relationships are crucial to maintaining customer loyalty and satisfaction. This part of the business model focuses on describing how customers are interacted with, how they are supported, and how they are kept informed about the products or services offered.

5. Sources of income

Revenue streams are the different means through which revenue is generated for the business. This part of the business model focuses on identifying the main sources of revenue and how they contribute to the success of the business.

6. Key Resources

Key resources are those that are necessary to carry out the business model. This part of the business model focuses on identifying the most important resources, such as capital, technology, personnel, and infrastructure.

7. Key activities

Key activities are those that must be carried out for the business model to function effectively. This part of the business model focuses on identifying the most fundamental activities, such as production, distribution, marketing, and customer support.

8. Key partners

Key partnerships are those established with other companies or entities to carry out the business model. This part of the business model focuses on identifying the most valuable partnerships, such as suppliers, distributors, and strategic partners.

9. Cost structure

Cost structure refers to the different costs associated with the business model and how they can be reduced to maximize profits. This part of the business model focuses on identifying the most relevant costs, such as production costs, marketing costs, and distribution costs.

The Business Model Canvas is a tool for defining strategy. This tool can give you a fairly comprehensive overview of your company, but remember that its nature is more strategic than operational. Therefore, we need other methods to help us implement a particular strategy.

Additionally, when combined with other tools, we can better understand where we stand and identify opportunities and areas for improvement to get the most out of our business.

What are you waiting for to start creating your Canvas template for your company?