Business Model Canvas Template Sample: Definition, Functions, and Components
All kinds of businesses will need this, a business model canvas. If you are an entrepreneur, you must be familiar with it. If you are not, then here you will find out what it is and what is inside it. To create one, you can find a business model canvas template sample online, and it is usually easy to edit if you need one for your business.
Business model canvas definition
A business model canvas is a document containing important elements in a business or a product. This is a means of defining and communicating a concept or idea of a business. The canvas is made coherently to organize an idea.
Inside of a business model canvas template you can find segments and generally it is divided into two big parts, the right side, and the left. The right side of the canvas is the customer side or external, the left is the business side or internal. Both sides will meet in the value proposition segment where the value of both parties interchange.
Business model canvas functions
So why does a business or a product needs to use this model?
- To help to guide a brainstorming. In discussions, the use of the model canvas will help organize the discussion of the ideas.
- To get a good understanding of a business. The business canvas will connect your ideas with how to make them into a business.
- To tell you which decision made by customers will affect the business.
- To allow everybody to understand and get a clear picture of what the business will be like.
Business model canvas components
A good business model canvas template will include the following components:
- Value proposition.
This is where the value of the business will interchange with the value of the customers. Where the needs of the customers are fulfilled by the business or the product.
- Customer segments
This segment is where the customers’, based on their ages, interests, gender or habits in spending money is divided.
- Customer relationships
In this segment is explained what to use by a business to interact with the customers.
Channels are the ways a business makes the customers involved in the cycle of sales.
- Key activities
It is defined as the main effort in achieving the customers’ value proposition.
- Key resources
This means what you need to do the activities in the business.
- Key partners
Key partners mean the other parties needed to achieve the goal of the business.
- Cost Structures
The budgeting in business operation.
- Revenue streams
This is defined as how the business turns the value proposition into a financial benefit.
Business Model Canvas Example