Are you able to synthesize the business model of your project on a single page? If you’re still not sure what I’m talking about or maybe you don’t know how to do it correctly, don’t worry, because today you will learn how to make your own canvas or template of the Canvas Model.
This methodology is one of the best ways that you can use to easily explain to a group of people, investors or your work team, what your business idea or project consists of.
Do you want a Canvas model template for your business? I imagine so and in this step-by-step guide I offer you one. But, before downloading and completing it, the best thing you can do is be clearer about what exactly this topic is about and what is the complete work structure of this methodology.
What is the Canvas Model?
The Business Model Canvas or Model Canvas , is a concept that allows to visualize in a single document the idea and the global vision of a business model according to 9 pre-established fields, showing the interconnections between the different elements that intervene in it.
This corporate technique, among other things, will allow each of the members of the work team to know the real situation in which we find ourselves and what are the actions that each one should carry out.
In short, the objective of the Canvas model is to help you stand out in the business world. And currently, to be more competitive, it requires a very well-detailed structure and a well-structured action plan , with which to efficiently plan where you intend to direct your efforts.
How did the Business Model Canvas come about?
Also known as the business model canvas , it was introduced to the corporate and business world with the launch of the book: «Business Model Generation» . The work dates from 2010 and its authors are Alex Osterwalder and Yves Pigneur.
In this publication, this tool is also defined as a very complete and essential method when creating a business model, based on strategic management for the creation of projects and their development.
Expressed in a slightly more literal way, this approach is based on taking the project as a single blank canvas, in which infinite possibilities can be considered in order to project business objectives.
All this, with a defined series of interrelated elements, which form a practical part of its “environment”, such as:
- Customer segment.
- Value propositions.
- Customer-business relationship.
- Source of income.
- Resources at your disposal.
- Tasks to do.
- Participating partners.
- Cost structure.
According to each author, there are thousands of ways to develop an efficient corporate Business Model Canvas, with which they can project the corporate objectives of each company.
In addition, these must be fully defined, in order to achieve a clear position within the sector or commercial niche.
A good first step is to have the right tools for this purpose and, precisely, the Business Model Canvas has been of great help since its creation for many companies in recent years.
Benefits of the Business Model Canvas for a company or business
Facing the intention of growth, expansion and corporate development, the approach presented by the Canvas Model, as many experts have concluded, allows the possibility of painting a whole universe of possibilities.
All of them, as progress is made in the development of the business system, emerge and are incorporated into the business plan.
This methodology has become in a short time one of the favorite tools of entrepreneurs , international businesses and companies, which are looking for a system that allows them to develop strategic management for projects that are easy to expose.
Among all the advantages that Canvas presents in the environment of planning and general development, the following can be taken into account:
- The Practicality of the method , which more than one characteristic is its fundamental pillar.
- The simple way in which the real elements are exposed within the medium in which they intervene.
- It allows the facility to graphically expose the ideas and each of the relevant aspects of the productive unit.
- It is a highly adaptable tool , which allows it to keep up with the growth of projects.
- It allows exposing important elements within the context of a project in a didactic, interactive and intuitive way .
- It allows the global visualization of each of the important aspects of the business.
What elements do we need to create a Business Model Canvas?
Next, we will briefly explain each of the elements and the way in which the Canvas Model addresses them within a business plan.
1. Customer Segment
The central pillar of any good business model is the one made up of the consumers of the product or service offered within the market.
The Business Model Canvas gives priority to the part made up of the total client portfolio, since these represent a fundamental part of the ecosystem of our niche and protagonists of our final income.
2. The Value proposition
Another fundamental part within this methodology is to organize all the elements that are part of the product which is previously established to satisfy an existing need within the current market.
The value proposition reflects everything related to the product (size, design, price, competitiveness, induction strategy, etc.).
Once everything relevant to customers and the product or service itself has been considered, the Canvas Model must take into account the relevance of communication channels.
These, ultimately, will be the intermediaries between your value proposition and the purchase or acquisition of your commercial proposal.
4. Client-Business Relationship
At this point, you must mark a boundary segment from where your relationship and interaction with your customers begins and ends.
That is, to give you a very simple example, do you know those bars where signs indicate that you must help yourself?
They are setting the limits in the interaction between the business staff and you (the customer), making it clear from the beginning that they will clear your table and attend to your order at the bar, but that they will not serve on the terrace at any time.
Obviously, this will also be linked to a certain extent to the volume of final sales that materialize because, in the previous example, it may cause dissatisfaction on the part of the customers, but the employer will save a salary (fixed expense).
In this way, the counterpart for this will be the possibility of reducing prices a bit, in order to alleviate this alleged consumer discontent.
5. Source of income
Once the previous elements are covered, within the Canvas model we immediately proceed to focus on the source of income.
This element is represented by the amount of capital that is obtained, once the consumer has had access to the product, good or service offered by the company.
Which once it is obtained, it is important to design a management plan with which to be able to redistribute it in the production requirements and the general expenses of the project.
6. Business Resources
Corporately speaking, one of the most delicate elements in almost any self-respecting project, and within the Canvas Model is no exception, is the administration of the resources that the business has for its efficient operation.
According to this system, this aspect must be analyzed and divided into four fundamental elements, consisting of:
Basically it is nothing more than what your company will be dedicated to. That is, each and every one of the actions that will be involved in the lucrative activity that you carry out.
In this sense, it is just as important to be clear about what activities the corporation will carry out as well as what actions will have no place within this business model .
8. Partners (key partnerships)
When talking about the preparation of a Business Model Canvas, it is extremely crucial to be clear about who will be the “captains of the ship” , who will presumably lead you to business success.
Likewise, among the key associations, strategic suppliers and alliances with potential clients, franchises, etc. will be included.
9. Cost Structure
The last of the elements within the template of our Canvas is the elaboration of a cost structure, where each of the previous blocks must be widely reflected.
This last step is where each of the investments that the business must make is directly reflected, without ignoring any, since we do not want to have “surprises” later.
Why is the design of a Canvas Model so important?
The design of a Business Model Canvas is presented within the business world as the opportunity to develop a more profitable and sustainable method that consists of nine elements, which I explained to you previously.
Likewise, it reflects how to keep them in mind when establishing the bases for a project that is likely to be scalable and that offers results.
At present, many companies use the Canvas bases, due to the precision that it allows and the possibility of being able to put together a business strategy with a more global approach.
And this, despite making it seem much more complex, the truth is that it is a tool that allows direct observation of each of the real environments in which the entity is involved.
A very particular element within this approach is the constant emphasis on the human factor , as a fundamental axis within a sustainable business model, where the establishment of lines of communication is essential for the efficient management of a business.
This system insists on the constant repetition of the influence of the human factor among the entire ecosystem that makes up the market and as a well-established communications model.
In addition, a much more detailed treatment in the management of the human part that surrounds the business environment.
Thus , it becomes the fundamental link in the process of corporate growth .
Once you have internalized each of these 9 fundamental factors or pillars that intervene in the generation of a model inspired by this methodology, your future will be about to change its course.
And it is that, if this way of presenting the elements of the business in this business canvas has worked for thousands of companies around the world, in your case it should not be very different.