What is the Business Model Canvas
The Business Model Canvas is a tool that helps businesses understand and organize the key elements of their business plan.
There are 9 building blocks that represent the different aspects of the Business Model Canvas, including:
- Value proposition
- Customer segments
- Channels
- Customer relationships
- Revenue streams
- Key resources
- Key activities
- Key partners
- Cost structure
All building blocks are related to each other, meaning that changes to one block will affect the others.[1] For example, if you change the value proposition, you may have to change the key resources or activities that are needed to deliver your product or service. The BMC helps businesses think about their business model as a whole and how each part fits together. It's a popular tool used by entrepreneurs, startups, and established businesses because it's simple and effective at identifying important aspects of a business model.
Typically, a BMC is created by drawing a template of nine building blocks on a large sheet of paper or a whiteboard, filling in each building block with post-it notes that represent the key components of your business model, iterating and refining the BMC, and testing it with stakeholders to gather feedback.[2]
