A business model describes the rationale of how an organization creates, delivers, and captures value.
As an entrepreneur, it’s always necessary to:
- Keep analyzing and updating your business model in line with current trends
- Validate your business model assumption with the customers until you get it right
Business model canvas (BMC +) is a working design and analysis tool which describes the business model of a company considering the economic performance and also the social and environmental impact of the business.
It’s formed by nine pillars:
- Customer relationships
- Key activities
- Key partners
- Key resources
- Value proposition
- Customer segments
- Cost structure
- Revenues streams
The Business Model Canvas (BMC) has a lot of differences with the business plan. First of all, it is used to highlight the essential traits of your business idea and enhance coherence, and second, it is used internally by the entrepreneurs.
BMC format is:
- Fast= you can outline your business model in a short time. Working on the BMC+ allows
to design, test and rapidly make changes through involving customers.
- Concise= the canvas forces you to pick your word carefully and get to point.
- Portable= a single-page BM is much easier to be frequently updated and shared with others.
“BMC is a strategic management tool used to quickly define and communicate business ideas and concepts. I enjoyed the lesson – very much helpful and very interesting. I learnt a small business can grow big if you aim high or learning to compete with myself” – Margaret Rorat, Participant of the ARESSOK training program
Stay tuned for more business articles on how you can build a clear business model that is profitable and impactful.