Today with so many startups coming up at every quarter, it is very essential that you know what is happening in your business, know which new revenue generation models you can adopt and analyze your cost structures, etc.
It is a one-page overview of your business with 9 building blocks and answers the questions below.
Your Value Propositions: What value do you deliver to the customer? Which one of your customer’s problems are you helping to solve? What bundles of products and services are you offering to each Customer Segment? Which customer needs are you satisfying?
Who are your Customers: For whom are you creating value? Who are your most important customers? How big a market share could you capture in what time frame?
How do you reach to your Customers: Through which Channels do your Customer Segments
want to be reached? How are you reaching them now? How are your Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines?
How do you manage customer relationships: What type of relationship does each of your Customer
Segments expect us to establish and maintain with them? Which ones have you established? How are they integrated with the rest of your business model? How costly are they? How do we get, keep & retain customers?
Revenue Streams: For what value are your customers really willing to pay? What do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?
Key Resources: What Key Resources do your Value Propositions require? Your Distribution Channels? Customer Relationships? Revenue Streams?
Your Key Partners: Who are your Key Partners? Who are your key suppliers? Which Key Resources are you acquiring from partners? Which Key Activities do partners perform?
Key Activities: What Key Activities do your Value Propositions require? Your Distribution Channels?Customer Relationships? Revenue streams?
Cost Structures: What are the most important costs inherent in your business model? Which Key Resources are most expensive? Which Key Activities are most expensive?
Preparing this business model canvas is extremely important in this turbulent time, as it gives you various options for new digital business models.