Business Model Canvas

For now, all the essential foundations for your startup idea are in place. But what does the business model look like, and what aspects still need to be considered for your idea to become successful?

The Business Model Canvas (BMC) is a useful tool for structuring and presenting business models. It consists of nine building blocks that allow you to analyze and communicate a company and its business model in a clear and concise manner.

The Business Model Canvas

Here are the nine building blocks and how they function:

1. Value Proposition: In this block, you describe the unique value proposition your company offers in the market. This is the heart of your business model, and you should address questions like "What can you do better than others?" and "Which problem are you solving for customers?"

2. Customer Segments: In this block, you identify your customers and target audiences. You can categorize them based on various criteria such as demographic data, purchasing frequency, or reasons for buying. The most important customer groups should be documented here.

3. Channels: Here, you list the channels through which you reach your customers. This includes sources of information, advertising opportunities, and sales outlets. Identifying the relevant distribution channels is crucial for effectively marketing your value proposition.

4. Customer Relations: This block addresses how you maintain the relationship with your customers. It can include aspects like personal contact points, self-service options, support hotlines, and communication media to promote customer loyalty.

5. Revenue Streams: Here, you define how your company makes money. This includes revenue models like the sale of products, paid services, subscriptions, or commissions. Revenue streams are crucial for the financial success of your business model.

6. Key Partnerships: In this block, you identify the partnerships on which your business model is based. These can be suppliers, technology partners, or joint ventures. Key partnerships can provide economies of scale and cost advantages.

7. Key Resources: Here, you list the resources needed for your business model. This includes personnel, capital, intangible resources like patents, and tangible resources like facilities.

8. Key Activities: In this block, you describe the central activities necessary to successfully implement your business model. This includes actions to improve the value proposition, acquire and retain customers, and manage resources and partnerships.

9. Cost Structures: Here, you define the major expenses and cost components of your business model. You identify variable costs, acquisition expenses, personnel costs, licensing costs, and other relevant expenses that affect the financial outcome.

The Business Model Canvas (BMC) offers a clear and structured method for developing, discussing, and optimizing business models. It promotes a shared understanding within the team and enables efficient communication. The BMC is suitable for developing new business models, optimizing existing models, planning digital transformation, and promoting customer-centricity. It is a versatile tool that can be applied in various industries and company sizes. Example:

Example Business Model Canvas

1. Value Proposition:

   • The circus offers spectacular and entertaining live performances and acts.

   • Unique acrobats, animal trainers, clowns, and magicians are part of the value proposition.

   • Emotional experiences, entertainment, and family-friendliness are at the core.

2. Customer Segments:

   • Families with children

   • Tourists and travel groups

   • Schools and kindergartens for educational outings

   • Event and party organizers

3. Channels:

   • Ticket sales at the event venues

   • Online ticket platforms and website

   • Collaboration with travel agencies and tourism companies

   • Social media marketing and promotion

4. Customer Relations:

   • Friendly customer service on-site and online

   • Special events for loyal customers or VIP guests

   • Feedback options for guests for continuous improvement

5. Revenue Streams:

   • Ticket sales for performances

   • Sale of souvenirs and merchandise

   • Catering and sale of snacks and beverages

   • Special events such as birthday parties and corporate functions

6. Key Partnerships:

   • Collaborations with animal trainers and artists

   • Cooperation with local event venues

   • Sponsors and advertising partners

   • Suppliers for food and souvenirs

7. Key Resources:

   • Talented acrobats and artists

   • Animals for animal acts

   • Event tents and equipment

   • Marketing and promotional materials

8. Key Activities:

   • Planning and executing performances and shows

   • Marketing and advertising to attract audiences

   • Caring for the animals and training the artists

   • Interacting with and entertaining the audience

9. Cost Structures:

   • Salaries for artists and employees

   • Animal care and maintenance

   • Rental costs for event venues

   • Marketing and advertising expenses

Task 1: Fill out your Business Model Canvas. Keep it as simple as possible and try not to get too caught up in too many small details.

Tasks for the chapter 💪

• Task 1: Read the chapter "Business Model Canvas".

• Task 2: Fill out your Business Model Canvas.

Weekly Report Template

Are you currently in the market with your product? If not, what is hindering you?
[Your Answer]
What have you done this week to advance your startup?
[Your Answer]
What are your 1-3 goals for the upcoming week?
[Your Answer]
Are you currently facing any challenges that are impeding your progress?
[Your Answer]
Do you have any questions for the mentors?
[Your Answer]
What is your business model? Describe it in a few short sentences.
[Your Answer]