Concept: Business Model Canvas Skill Goal: Be able to convey your business model on a single sheet of paper. ” Unless you have tested the assumptions in your business model first, outside the building, your business plan is just creative writing.” – Steve Blank

• A business model canvas describes a high level overview of how a business captures or creates value.

• A business model is not static, it is a set of assumptions that is tested and retested

• The Alexander Osterwalder Business Plan Canvas uses 9 components:

• • Value Proposition - The benefits a customer receives from the solution;
  • Customer Segments - The segment(s) of the market that has a demand for the solution;
  • Channels - The methods used to acquire customers and distribute the solution;
  • Customer Relationship - The ongoing interaction established with clients;
    • Ex: Personal assistance, Dedicated personal assistance, Self-Service, Automated services, Communities, Co-creation
  • Key Resources – Physical, financial, intellectual, or human resources needed to create the solution;
  • Key Activities - The key activities necessary to implement the business model;
    • E.g. Production, Problem Solving, Platform/network
  • Key Partners - The key partners and their motivations to participate in the business model;
  • Revenue Streams - The revenue streams generated by the business model (constituting the revenue model);
  • Cost Structure - The cost structure resulting from the business model.

Additional readings: What is a business model? No Plan Survives First Contact With Customers – Business Plans versus Business Models What’s A Startup? First Principles.

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