We all know the value of a business model and the need for an effective model to help build your business.
While it is critical to have a reliable, comprehensive and robust business model in the first place, you should come back to reevaluate and improve it regularly, and whether starting or reviewing, the business model canvas is a great place to start
What Is The Model
The business model canvas is one of the most highly efficient strategic business planning tools. It enables you to describe your business along with its individual specifications, and it’s design and design implementation.
The model is simple to use can easily adjust to multiple business challenges.
The business model canvas is divided into nine different segments, each of which gives you a deeper insight into your business environment.
Key Activities Of Business Model Canvas
Segment 1 – Value Proposition
This pertains to the value proposition which is offered by your business.
It reviews the reasons why customers should be compelled to do business with you, what sets you apart from competitors, what differentiates your business, and what solutions you offer.
Segment 2 – Audience Segments
The next segment reviews your customers. It is imperative for a business to divide the market into useful segments and then target a segment that suits you best—having a well-defined target market will tell you where and when to focus for your potential customers.
Segment 3 – Distribution Channels
This segment focuses on defining the channels of your business. The channels could be your online web-stores or the outlets you may have for your business.
This helps you in describing each channel and figuring out how to use it to extract the maximum advantage.
Segment 4 – Audience Relationships
The next segment talks about the relationship you have with your customers.
It is vital to have a positive and indulging relationship with your customers. Customer retention and acquisition strategies are captured here.
You can develop and discuss ways to acquire new customers for the business and focus on retaining existing customers.
Segment 5 – Revenue Stream
This is where you review the revenue which you make from the value proposition that your business offers.
It investigates how much money is the business generating from all sales. Personally recommend stating with Unit Economics .
Segment 6 – Key Resources
The section is dedicated to the resources that are owned by the business, which plays an active part in delivering the value proposition, which in return, helps generate the right amount of revenue for the business.
Segment 7 – Key Partners
The partners you chose to run your business with fall under this segment. Here you consider all those people who aid you in performing business activities such as suppliers etc.
Segment 8 – Key Activities
The activities of the business fall under this segment. If you have a production business, whether you give services, whatever it may be is challenged comprehensively under this section.
The segment helps you focus on the activities that generate revenue.
Segment 9 – Cost Structure
This is dedicated to the cost structure of the business—the costs which are incurred to ensure the functioning of the business come under this segment.
Conclusively, we can say that whether the business is a new venture or has been running for a long time, the business model canvas can effectively help you in performing the business activities more effectively and efficiently.