A business model describes the way in which an organisation creates, delivers and retains value. The 9 components of the Business Model Canvas help you to map all this in a transparent and well-organised way. Once you know what the 9 parts stand for, you can constantly adapt your business model. This allows you to quickly respond to the needs of the market and stay ahead of the competition!
The 9 components of the business model canvas
Here you describe which specific target audiences you want to reach. Who are your customers? What are their needs, wishes, problems, specific purchasing behaviour?
Your UPS (Unique Selling Proposition) is part of this. This describes what added value your product or service offers to consumers. This is the reason why someone would choose you over a competitor. What problems do you help solve with your product or service?
In this section, you indicate how you communicate with your different customer segments. And how they want you to communicate with them. Which is the right and most profitable way for each segment?
These are the marketing and distribution channels. How are customers (groups) kept informed of our offer? What image do you want to project through those channels? How can they purchase your products or services?
Naturally, income must be generated. How do we earn our money now, through which sources of income? How can we develop additional sources of income in the future?
A description of all the resources and people you need to meet the needs of your customer. Which do you need to create added value? To reach your market? To maintain customer relationships?
The most important activities you need to do as a company in order for your model to work. In other words, these are the actions you take to maintain your customer relationships, to work with your partners. Which departments in your enterprise are responsible for which actions?
Who are your key partners? Which partnerships are essential to make or co-create our offer? Which partners are crucial to be even more successful in the short and long term?
What are your biggest costs and which are essential to make your business model work? Which resources and core activities are the most costly? Which costs are fixed, such as the rent of your shops, warehouses, office buildings... and which are variable?
The business model canvas is a guideline for putting your business model on paper. It allows you to get a picture of your activities and your earnings model in a quick and convenient way. A good understanding of your own company and your USPs are the starting point for marketing in a cost-effective way. Without insight into your USP, it is impossible to convey the right message.