The business canvas model is one of the more commonly used framework to explain the business model of a firm, and to explain the more important elements of the business. The canvas displays all this information in a single view thereby making it easy to visualize the business (Osterwalder et al., 2011).
Related: Value Proposition Canvas
Managers utilize the business model canvas as a strategic planning tool to build and represent their company model.
The business model canvas template focuses on the customer segments, value proposition, channels, customer relationships, revenue streams, key activities, key resources and cost structure for a business.
So, all the essential components of a firm are identified with clarity in the business model canvas template.
Business Canvas Model Example for startup selling Old Money fashion clothing
- Customer Segments: College Students (17-21), Working Women (21-45), Women up to age 60, Working Men, Students (16-50), Material Suppliers
- Value Proposition: Budget-friendly formal and casual wear reflecting an old money aesthetic (Rs 300-2000). Eco-friendly materials and recycling practices, promoting sustainability while embodying timeless style. Tailored clothing sizes for different body types, ensuring a broader customer base.
- Channels: Online Platforms (Instagram, Facebook, Official Website, Amazon). Influencer Marketing. Collaborations and Partnerships
- Customer Relationships: Community Engagement. Customer Support
- Revenue Streams: E-commerce Sales. B2B Collaborations. C2C Sales
- Key Activities: Product Design and Development. Marketing and Branding. Supplier Collaboration.
- Key Resources: Creative Design Team. Technological Infrastructure
- Cost Structure: Product Development Costs. Marketing and Advertising. Operational Costs
Business Canvas Model Example for Startup selling healthy/organic food products
Here’s how you would make the Business Canvas Model for a new business (that will sell healthy/organic food products).
Customer Segments
People over 40 years old, both men and women, living in urban areas.
Value Proposition
- Make it easy for consumers to buy organic food.
- Variety of organic dry fruits and super foods
- Lots of informational content on organic food on the website.
Customer Relationships
The business will reach out to the customers using: Online marketing (SEO, social media), Various forms of traditional Advertising, Direct selling by setting up kiosks in residential buildings, Word of mouth marketing.
Key Activities
Key activities within the business.
- Procuring the various raw materials
- Growing the various food through organic farming (on land in Nasik)
- Various promotional activities to sell the products
- Delivering the orders – Logistics
Key Partners
Suppliers: The business will require fertilizers and seeds which will be sourced from another company. The various packaging materials will be procured from local businesses and/or from Amazon.Cost Structure
The major expenses will be on growing the food, to get raw materials such as seeds, fertilizers and paying for farming labour. Other major expenditures will be on Marketing and distribution. The firm will take an office on rent on Mumbai, and a farming land on rent in Nasik.
Revenue Streams
The business will earn revenues primarily through sale of organic food products grown through organic farming. The company will sell various kinds of dry fruits and super foods.
So, in the above example, by looking at the framework, one can see that the business will make money by selling organic food, it will reach out to the target customers through online and offline marketing efforts, the products will be distributed online initially and through other channels later on, the suppliers who will supply the raw materials and packaging materials, the important partners of the business, the key activities that are carried out by the business, the major expenses that the business will incur, and other important things about the business.
Examples
References
Osterwalder, A., Pigneur, Y., Oliveira, M.A.Y. and Ferreira, J.J.P., 2011. Business Model Generation: A handbook for visionaries, game changers and challengers. African journal of business management, 5(7), pp.22-30.
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