You have a great idea for a new product or service and want to develop your business model now. In this article, you will learn how the Business Model Canvas helps you to proceed in a structured and systematic way.

The Business Model Canvas is a simple and effective method for developing, testing and improving your business model. It provides a visual representation of the nine key elements of your business model that show how you create value for your customers and convert it into revenue.

Develop the business model:
the nine building blocks of the BMC

• Customer segments: Who are you creating value for? Which target groups or markets do you serve?
• Value propositions: What does your company offer your customers? What problems do you solve for them or what needs do you meet?
• Channels: How do you reach your customers? Through which communication, distribution and delivery channels does your value proposition reach them?
• Customer relationships: How do you build and maintain relationships with your customers? How do you win new customers and retain existing ones?
• Revenue streams: How do you generate revenue with your value proposition? Which price models or payment options do you choose?
• Key resources: What resources do you need to implement your business model? These can be physical, intellectual, human or financial resources.
• Key activities: What key activities are necessary to implement your business model? Which core processes or tasks are required?
• Key partners: Which partners do you work with to implement your business model? Who are your suppliers, cooperation partners or strategic alliances?
• Cost structure: What are the costs associated with your business model? Which of these are fixed and which are variable? How can you reduce or optimize your costs

All you need to create a business model canvas is a large sheet of paper or a whiteboard and some sticky notes or markers. You can fill out the canvas alone or in a team.

Proceed step by step

• Start with the value proposition. Identify your unique selling proposition and what sets you apart from the competition.
• Define your customer segments and analyze what they expect from your company.
• Work on your channels and customer relationships to reach customers and make them satisfied and loyal.
• Identify your revenue streams and consider how you can monetize your value proposition and set prices.
• Analyze your key resources, activities and partners.
• Look at the cost structure and find ways to reduce and optimize costs.
• Check your canvas for consistency and logic.
• Test and improve your canvas based on feedback from potential customers or experts.

The Business Model Canvas is a valuable tool for developing and fine-tuning your business model. It helps you to visualize, structure and communicate your idea. It also allows you to make changes quickly and easily and discover new possibilities. With the Business Model Canvas, you can present your business on a single page and pave the way to success. You can download the template here.