Many businesses, in order to remain sustainable and profitable, but also to have well scheduled procedures, use business models. A business model describes how an organization works, creates, offers value, and is rewarded. The business model is the depiction of the enterprise’s logic and strategy. Describes what the company offers to the customers, how it approaches them and creates relationships with them, through whom resources, activities, and partnerships, and ultimately how it gains money.
The Business Model Canvas is one of the most user-friendly tools for creating a business plan and does not require any previous knowledge. It was developed from Alexander Osterwalder and is consisted of nine-parts. These parts are the initial parts needed in order to help you transform the business idea to a real business which will be sustainable and profitable and in case of a Social Enterprise, to serve a social need.
BUSINESS MODEL CANVAS
Business Model Canvas is a simple plan consisted of nine parts, which helps someone to easily create a Business Plan and implement a Business idea.
Developing a business model instead of a business plan in the beginning of a start-up, offers the benefit of simplicity of use and enables to see all core components together. It is now largely used by all types of entrepreneurs; by adapting new information and condition changes on a simple model, instead of developing a comprehensive business plan which requires a work of weeks or months and most probably casted away if not feasible enough.
Analyzing the Business model Canvas
The Business model Canvas consists of the following nine elements:
Key partners
Key Activities
Key Resources
Value Propositions
Customer Relationships
Channels
Customer Segments
Cost Structure
- Revenue Streams
Each element comes with instructions and questions to consider before filling Business model canvas. They run from who the partners in the project are to what resources are available to what cost and revenue can be expected. The following picture presents the structure of the Business model canvas.
