Why hello there, future entrepreneur!
Sounds like you’ve got a few ideas in your head and could use some help fleshing them out.
A Business Model Canvas is just what you need and we’ve got a free template below.
What’s a Business Model Canvas?
In short, a Business Model Canvas is a tried-and-tested framework for rapidly fleshing out the business potential of an idea, which makes it a nifty tool to have if you plan to start a business.
The average entrepreneur has ten new business ideas a day.
Let’s be honest – most of those ideas are rubbish.
In fact, some ideas are about rubbish.
That’s not to say they’re not viable solutions, but not every solution is a viable business.
After all, a business’ survival depends on several interconnected parties and stakeholders that add value to each other.
And therein lies the value of a Business Model Canvas.
Once you have an idea, a Business Model Canvas helps systematically map out nine key aspects that measures your idea’s business potential:
- Customer Segments
- Value Propositions
- Customer Relationships
- Revenue Streams
- Key Resources
- Key Activities
- Key Partnerships
- Cost Structure:
We hope you’ll agree that no business can exist without every one of these nine factors.
Used honestly, a Business Model Canvas tells you whether it’s best to move on to or if what you have is worth pursuing.
Benefits of using a Business Model Canvas
You might be wondering why not just take out a pen and paper and sketch out something by yourself.
You can, but you’d be writing out a Business Model Canvas anyways – with extra steps for no reason!
The original Business Model Canvas has been established for a long time and is used by new and seasoned entrepreneurs alike because it offers a guaranteed high-level evaluation of a business idea.
Additionally, it makes it easy to put your thoughts to paper in a way others can understand.
Unless you have world-class calligraphy, save your partners the headache and use our free Business Model Canvas template below!
But first, let’s look at the nine criteria in more detail and how to develop them.
The Nine Business Model Canvas Criteria
Understanding your audience is key to creating an effective business model canvas. It’s crucial to know what your audience expects from your canvas in order to communicate your ideas clearly and persuasively.
Question to answer: For whom are we creating value and who are our most important customers?
This block defines the different groups of people or organisations that a business aims to serve. It helps in identifying the target audience and their specific needs.
Question to answer: What value do we deliver to the customer?
This block outlines the unique value that the business offers to its customer segments. It describes the products, services, or solutions that address the customers’ problems or fulfil their needs.
Question to answer: Through which channels do our customer segments want to be reached?
This block includes the various ways through which the business delivers its value proposition to the customers. It encompasses distribution channels, communication channels, and sales channels.
Question to answer: What type of relationship does each customer segment expect us to establish with them?
This block explains the type of relationship the business establishes with its various customer segments. It can range from personal assistance to automated self-service, depending on the nature of the business.
Question to answer: For what value are our customers willing to pay?
This block outlines how the business generates revenue from its customer segments. It includes the pricing strategies, payment methods, and sources of income for the business.
Question to answer: What key resources do our value propositions require?
This block identifies the essential assets required to deliver the value proposition, run the business operations, and create value for customers. These resources can be physical, intellectual, human, or financial.
Question to answer: What key activities do our value propositions require?
This block describes the crucial activities that the business must perform to make its business model work. It includes production, marketing, distribution, customer support, and more.
Question to answer: Who are our key partners and suppliers?
This block highlights the external organisations, suppliers, or entities that the business collaborates with to enhance its capabilities, reduce risks, or access specific resources.
Question to answer: What are inherent costs in our business model, especially the most expensive key resource and activity?
This block outlines the different costs and expenses associated with operating the business model. It includes fixed costs, variable costs, and other financial considerations.
Sample Business Model Canvas
We’ve created a simple Business Model Canvas in a poster size for anyone to directly edit for free!
Fill in your details below to download an editable poster sized Business Model Canvas that you can print out and paste on your wall!
Small Business Idea: Applying the Business Model Canvas
Let’s apply what we understand about creating a Business Model Canvas with a small business idea.
Just for fun, we’ll make the small business idea an ornamental fish store – the kind where you buy fish to keep in aquariums.
Here’s what a Business Model Canvas of MISHU’s Fish Business might look like.
Unfortunately, we think we’ll stick to the Company Secretarial and business consultation side of things for now, but we wish you all the best!
Here are some other great small business ideas you could run through a Business Model Canvas.
- Online clothing store
- Food truck business
- Freelance writer
- Fitness studio
- Marketing agency
In fact, we think this is a great time to use ChatGPT to help you narrow down and find a niche – think of it as a very smart assistant taking your dictation and making suggestions.
Let MISHU help incorporate your business!
The Business Model Canvas is a great way to discover new niches and profitable hustles, but you’ll need help setting up your business, especially for a new company incorporation. Either way, our team will be here waiting to help advise you on how progress in your entrepreneurship journey.
It’s all on you to take that first step, though!