What is business model canvas?
It is a one page plan to start a business , The business model canvas is a strategic management tool . It ‘s used to define clear business ideas or concept to start a business . This strategic mostly used by multinational company.
Who created business model canvas?
The Business model canvas was develop by Swiss business model Alexander Osterwalder and management information system professor. Alexander Osterwalder (born 1974) is a Swiss business theorist, author, speaker, consultant, and entrepreneur, known for his work on business modeling and the development of the Business Model Canvas.
Business model divided in 9 parts
- Customer segment
- Value proportion
- Customer relationship
- Revenues structure
- Key resources
- Key Activity
- Key partners
- Cost structure
Business Model Canvas this is a part to identify your perfect customer fro your product and services to do a business . It will be more easy if you will do some research in market fro product and services try to understand customer purchasing demography and physiography . It will help to your business and customer with new innovation of product and services .
Example : Cloths for man , women
IT’s a tool for customer inspire innovation of Business Model Canvas. It is an important part in canvas . It means what kind of services or product will will give to a customer to make their work or life easy . Make your product more valuable to the customer make them habit to user your product and services make an recurring module for your business . As your self What problems are you solving for your customer or satisfied their needs . If you find out the key for their problems then you will make your customer satisfied .
Example :JIO SIM in India Provide free internet and local call for some minute
Business Model Canvas Channel is a part which make your customer segment and value proposition join together . It is a place where you will find your customer and make them aware about your product and services . A list of important Channels, linked to Personas or Segments if they differ substantially. Make notes on what steps are relevant for each- promotion, sales, service, etc.
How customer will interact with you about your product and services . How they give your feedback for your product . Make recurring revenue model for your customer Make a loyalty program , customer relationship manager , combo or discount offer for genuine customers. This segment help to make Trust on a user of your product and services and insure them someone is their to listen their problems and solve it.
How does the business earn revenue from the value propositions?
Business Model Canvas Its help you to know from where you will going to make a profit in your business and make revenue model for your business . Example If you have travel agency business your revenue stream will be sell of ticket Food supply in your vehicle , hotel rent
Business Model Canvas It’s help to build in fracture of company so you can give good value to customer . It’s a place where you need to identify finance for your company how much capital you need for your company and from where you will get it . manufacturing of product ,good quality of product will give you good quality of machine and talented people of your stream .
This is a most important thing that you have to do to make business model work Which are the key activity that you will do to work your business model are Marketing of your product and services , website branding ,social media advertising , maintenance of your services and brand loyalty,Licences and copy right of your product Hiring a talented team Name of your product and logo taglines .
It is a third party to whom you will pay for your support in business like web designer . Its a group of a company our people who help you to run a business with their services like advertising , marketing , Distributor .
Cost Structure Business Model Canvas This area help you to identify your Fixed cost and variable cost of your company and give you and rough idea to cover your losses and find out a solution to reduce a wastage of money and invest in useful area for business .