Sometime back when you thought of a business idea, the first thing you had to do was to do a full business plan. Entrepreneurs have done tens of business plans especially when it comes to looking for funding for the business.
In this day and age, start-ups are encouraged to map their business in a lean startup template for developing new business models. This is designed using 9 building blocks which are interconnected to enable your start-up to provide value both internally and externally.This however does not replace a business plan.
We have broken down the 9 blocks with questions to guide you in filling the template with your business information.
Value proposition
What do you do and what value are you creating for your customers? Which one of your customer’s problems are you helping to solve? Which customer needs are we satisfying?
Customer segments
This refers to all the people and organizations for which you are creating value, paying customers and users. Who do you help? Who are you creating value for? Who is the most important customer in our business?
Channels
How do you reach your customer? Which is the best way to reach your customer? Which is the most cost efficient way to reach your customer?
Customer relationships
How does your business interact with your customers? What type of relationship does each of your Customer expect us to establish and maintain with them? Which ones have we established?
Revenue Streams
How does your business generate money? What value are your customers willing to pay for? How are they currently paying? How would they prefer to pay?
Key activities
How do you do it? What are the key activities does your business perform. eg, production , farming
Key resources
What do you need for your business to work well.This the infrastructure to create and deliver your value to your customers. It shows which assets are indispensable in your business model. eg Patents, a good team
Key partners
Who will help you leverage your business? Who are your Key Suppliers? Which resources are you acquiring from the partners? Which Key Activities do partners perform?
Cost Structure
What will all this cost? What are the most important costs? Which Key Resources are most expensive? Which Key Activities are most expensive? is it equipment, rent?
A business model canvas represents your business on one page. it can be amended as many times as possible and it is recommended for both start ups and existing businesses.
Here is a simplified business model canvas from DIY
