Below, we elaborate on how you can rebuild your business by using the Business Model Canvas,
What is the BMC?
Let’s clear up a misunderstanding. One should not only draw up a business model when starting a company. In fact, every entrepreneur should evaluate their business model on a regular basis. The corona crisis is forcing entrepreneurs to think about this in order to survive.
But where do you start? A handy tool to do that is the Business Model Canvas, which helps you to describe how you create and deliver value for your customers.
This tool includes nine building blocks
that support you in setting up, developing, and adapting your business.
9 building blocks of the Business Model Canvas
1. Value proposition
- Value proposition
- Customer Relationships
- Customer segments
- Key activities
- Key resources
- Key partners
- Revenue streams
- Cost structure
What is the added value for the customer? Why should the customer buy your product or service? Try to be very precise in what sets you apart from your competitors. The more specific you are, the clearer your added value for the customer is.
2. Customer relations
A satisfied customer is worth their weight in gold! Customers are the drive behind your company. Not only do they put their money into your business, they can also impact your company’s image, which is why it’s important to build a good relationship with your customers.
Through which channels (communication, distribution, and sales channels) do your products and services reach the customer? How are customers (groups) kept informed about your offer? This can be offline, online, or a combination of both.
4. Customer segments
Which target group do you want to reach? Who are your customers? Where do they live? What are their religious beliefs? What is their socio-economic background?
No matter how good your product or service may be: if you can’t reach the right customer, you have a problem. It is important to properly map out your future customers and sketch out a profile.
5. Key activities
What are the core activities of your company? It is very important to maintain the focus on your core business. Anyone who deviates from this usually loses focus, often at the expense of quality.
6. Key resources
What resources do you need to carry out your activities? Which machines are needed to manufacture your product? Are you hiring? Do you have intellectual property that needs protection? These are some of the questions you can ask yourself.
7. Key partners
Who are the most important partners you work with? Which partnerships are essential to your offer? What services do they provide for you? Many start-ups and established entrepreneurs, as well, can benefit from cooperation and co-creation. What expertise can you outsource? If you’re not good at administration and figures, it is best to outsource this so that you focus on important matters.
8. Revenue streams
This building block focuses on your income. That’s logical because your company has to turn a profit!
The income streams are a list of all your sources of income. You make it clear where the income comes from. What is the minimum number of customers you need? How do you determine the price of your product or service?
9. Cost structure
On the one hand, there are your revenue streams, but on the other, there’s obviously your cost structure. It is very important to estimate your costs so you can avoid nasty surprises. Map out your fixed (renting premises, machinery, etc.) and variable costs (purchase of raw materials). Maybe savings can be made somewhere. Try to be as complete as possible here.
Business Model Canvas completed?Have you filled in the BMC completely? An expert’s perusal could provide additional insights. This allows you to make timely adjustments where necessary and saves you money and worries later on. Need a Business Model Canvas example?
Have you gathered enough information and want to put the above information to good use right away? Download the Securex Business Model Canvas
to (re)open with a strong foundation.