With the Business Model Canvas (BMC), you can visualize and test your business model, which is an indispensable step when developing a business model innovation. It is a strategic management tool to quickly and easily define and communicate a business idea or concept like in SEO business model.It is a one-page document that works through a business or product’s fundamental elements, structuring an idea coherently. This article will emphasize what the Business Model Canvas is, how it works, and its advantages.
What is the Business Model Canvas?
Roughly translated, the technical term “business model canvas” means that you can present your business idea on a piece of paper. It allows you to visualize your business model, analyze its weaknesses, and assess whether it can work. Conceived in 2005, the BMC developed by the Swiss economic theorist Alexander Osterwalder and the computer scientist Yves Pigneur. The simple tool, which is innovative in many ways, has been enjoying increasing popularity ever since.
How Does it Work?
All you might need to get a BMC are two things: Different colored Post-Its and an empty BMC. Get the large print of the template as large as possible so that you have enough space for your ideas. By the way, you can also make your BMC digitally. This method is applicable for teams working together via the cloud, for example.
BMC can be used to analyze your existing business model and design a new concept. Write about the many topics yourself. Start with value assurance and continue with the customer sections. You can start with the customer segments and then select value assurance. However, you should always fill in the two areas mentioned at the beginning. This post-it’s many colors should represent the different customer segments—a suggestion for new ideas: do not fall too much with the (private) idea. You run the risk of rejecting better decisions. Use the selection to examine many different BMC mixes.
Advantages of BMC
Whether you work with the design of your current business or a new idea, BMC has five main advantages:
Take a look at the basics: With BMC you overview what exactly the business model is. It also shows which activities are not too important or perhaps hinder the achievement of the goal. Because BMC refines the vision of these principles, it can help your small business to move forward.
Basis For Brainstorming: BMC is perfect as a basis for letting your thoughts run wild. You can also test alternative models for your business idea and find new combination possibilities.
Conflicts of Objectives and Dependencies: With the BMC, startups can present their business idea. Companies can also use BMC to get new jobs. BMC can also highlight conflicting dependencies or objectives using existing processes.
Base: BMC cannot replace a complete business plan for your idea. But if you present your business version in a BMC, you will also receive a milestone for your business strategy.