Canvas: how to create an ideal business model for you
The Canvas is a business model tool ( model business ) that lately have become popular enough among entrepreneurs. Understanding its importance and functioning is essential to have a healthy business model that shows you the best way forward. Regardless of whether you are a beginning entrepreneur or not, Canvas will be one of your greatest allies in the business world.
The importance of Canvas
Every entrepreneur must create mechanisms that allow greater control of his business and, of course, structure an objective way of doing business.
All of this should be done at the beginning of the venture, however, you can also do it when your business is already up and running. In fact, if you’ve never done it, it’s never too late to do it. And this is where Canvas comes in as an important ally in your business.
9 key factors of an enterprise
- Partner key ( Key Partners );
- Key activities ( key activities ) ;
- Key resources ( key resources );
- Value Proposition ( value propositions );
- Relationship ( customer relationships );
- Channels ( channels );
- Customer segments ( customer segments );
- Operating costs ( cost structure );
- And revenue streams .
The most important thing about the business model is that you can visualize the entire business and graphically organize the actions for each one. However, there are other elements that you should also pay attention to, especially if your company is new to the market.
It is important that you define the customer segmentation area very well. This should be your first step when designing a business model, as this way, you will be able to identify specific value proposals for a customer that is different from the other.
How to create an ideal business model for you
As I said, Canvas is separated into nine key factors of an enterprise, which to make it easier to understand, you can separate as follows:
- How (Infrastructure – highlighted in blue)?
- What (Offer – highlighted in red)?
- Who (Client – highlighted in green)?
- How much (Finance – highlighted in yellow)?
In order to create an ideal business model for you and your company, it is important to understand what each key factor represents and means in Canvas.
Proposals value ( value propositions )
They correspond to the reason the company exists and show how it meets one or more customer needs. In this block, you need to think about the project, product or service that your company represents and then answer two questions:
- What is the main value that the project, product or service will deliver to the customer?
- What needs of your client will my company meet?
Key resources ( key resources )
Resources that will be needed to get your new project off the ground (or, in the case of an existing company, your primary resources).
They can be categorized as:
- Physical resources (machines and equipment);
- Intellectuals (knowledge, brands and patents);
- Financial ( cash flow and income sources);
- Or humans (labor).
Activities that will be required to deliver the value proposition.
In this block, you will list your main partners and suppliers who will be able to help you in your company in the future.
Customer segments ( customer segments )
As most of the time there is more than one customer segment, the ideal is to divide customers by segment. When this division is established, it becomes clearer to know how the company will act (or act) to satisfy the needs of each segment (or a specific segment).
- Every organization deals with communication, distribution and sales channels.
- List which channels the customer wants to reach.
Interacting with customers is critical.
The rule says that the larger your customer base, the greater the need to divide it into target groups, always thinking that each group has a specific need. okishimasimmonds Based on the new project your company is evaluating, reflect on how it will relate to the customer segment that will be reached.
The important thing here is to answer the question: based on the value proposition, how much are customers willing to pay for the new product or service?
Operating costs ( cost structure )
All costs necessary to get the company off the ground (or the cost structure of the company being evaluated).
Note that this item is extremely important for the financial area, because if the controller (a professional who guarantees the liquidity of assets and liabilities and works around the clock to demand the return on social capital) evaluates that the necessary investment exceeds the revenue, the costs for the project should be rethought.
Canvas x technology
To make it even easier to create your Canvas style business model, there is an application that generates the Canvas made by you.
When you create a new Canvas, the app will ask:
- Title (will your business model have a specific name? );
- Description (a quick description of your business model );
- For (to whom you will show your business model ) and For (who created the business model ).
As you have seen, if you are an entrepreneur or intend to be, then it is essential that you understand what Canvas is. I hope our article was easy to understand and, if you have any questions, just ask in the comments. All the key factors are extremely important when creating a new business. However, if you already have a company and would like to reformulate it or just “add the points in the i’s” it is also recommended that the business model be done.
With the Business Model Canvas and SWOT application , which I mentioned, it is much easier to follow your business model, as it is completely online and on your mobile phone. Remember that all items are important and at the time of the presentation do not be afraid to “fight” for your ideas and ideals (of course, if it makes sense).