Whether your business is already established or it’s in the start-up phase, you need a platform that you can use to set up your company for success. And this is where a business model canvas comes in.
Developed by Yves Pigneur and Alex Osterwalder, a business model canvas is a flexible, intuitive and simple tool which you can use continuously to refresh your business model. It features various components such as value propositions, customer segments, customer relationships, channels, resources, revenue streams, key activities, key partners and cost structure.
So, why do you need a business model canvas? Here are some reasons and benefits.
A Business Model Canvas Gives You Focus
A business model canvas is to inform or guide your thinking throughout the various stages of creating a business plan. Therefore, it will make it easy for you to understand how various aspects of your business relate to each other. That is, the processes, activities and functions.
Also, a canvas helps you to think about your organization in a more formal and systemic way. This makes sure that all areas of your business are adequately covered.
You should also note that a model canvas focuses your company on the most important elements. It will therefore help you to focus your resources on areas that deliver the highest ROI.
A well-designed business canvas model will make it easy to identify your company’s strengths and weaknesses and then come up with strategies that will move your business in the right direction.
Agility And Speed
What sets a business model canvas apart from other interventions or models is that it focuses on quality instead of quantity. When creating a business plan, it’s highly likely that you’ll end up with a document that has several pages.
However, when it comes to a business canvas, it’s all about careful examination of key inputs of every aspect of your business. Its design is focused and simple.
This makes it easy to develop, start with and go over. As long as you’re using a canvas model, you’ll have an easy-to-use guide that you can refer to often.
One of the main reasons why you need a business model canvas is that it creates a common language that entrepreneurs can use to express, share and gain feedback on various aspects of their business model.
Its simple design doesn’t require any complex tools or expertise to decipher. This makes it easy to understand and consume. Also, it offers a transparent and straightforward reference which can be applied internally throughout your organization.
In addition, a canvas is a great starting point for creating, building, developing and ratifying your company’s business model.
Regardless of the size of your business, it’s important to have a canvas. This one-page document lays out all the key aspects of your business in front of you. This makes it easy to see where you are and what you need to move to the next level.
Besides that, a business model is editable which means you can change various aspects to suit the changing needs or scope of your business.