The Business Model Canvas (BMC) is a strategic management and lean startup template for developing new or documenting existing business models.
It is a visual chart with elements describing a firm’s or product’s:
- Value proposition – Why a customer should buy from you
- Infrastructure – How to reach customers
- Finances – What are your revenue and costs sources
BMC can be used across a wide variety of organisations including: Startups, Enterprises and Government.
It is one of the easiest tools to get started with after only a short introduction.
The Model helps us consider the question, what business are we really in?
|Organisation||Conventional Business||What business are they really in?|
|McDonalds||Selling hamburgers||Real Estate|
|Social Media Network and Platform||Advertising|
|Coca Cola||Beverages||Logistics networks|
Why you need a Business Model
Introduction to Business Model Canvas
Example of Completing the Business Model Canvas
Let’s get started!
- Remember to complete the boxes in the order recommended by the numbers
- There are no right or wrong answers.
- Keep experimenting with the tool to help you learn and develop your strategy
However BMC is just a tool and it does have limitations which include:
- excludes an organization’s strategic purpose
- excludes a notion of competition
- mixes levels of abstraction
For further information about BMC limitations: kraaijenbrink.com