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Business Model Canvas Overview
Business Model Canvas Overview
A visual tool used to create and test hypotheses about a new business idea. "Educated best guesses" initially.
More flexible than a business plan
Designed to quickly show how all parts of the model fit together
Business Model Canvas (wikipedia)
Key Parts of A Business: Business Model Generation By Alexander Osterwalder & Yves Pigneur (4:48)
Lean Canvas
Lean Canvas
It is usually best to do a Lean Canvas before a Business Model Canvas
An adaptation of the Business Model Canvas optimized for Lean Startups
“Problem” instead of “Key Partners”
“Solutions” instead of “Key Activities”
“Key metrics” instead of “Key Resources”
“Unfair advantage” instead of “Customer Relationships”
The lean canvas zeroes in on solving a problem while the business model canvas centers around selling a specific product.
Lean Canvas Example (4:03)
You can use AI, like ChatGPT, to help you by asking you relevant questions, as long as you research answers and cite the service you use. A good prompt would be the following:
"You are going to help me create a lean canvas for a new entrepreneurial venture. You will ask me questions to get the most important content for the canvas. You will describe each section and ask me a question for each section one at a time and wait for my responses. You will use my answers to create the lean canvas. Begin by describing one section, asking me one question, and waiting for a reply."
You should still put the content into the canvas for visual appeal.
Business Model Canvas Section Descriptions
Business Model Canvas Section Descriptions
Value Proposition
Value Proposition
A statement describing how the business creates value
What problems/needs does the product solve?
Do any trends support the product/service idea?
Political, economic, social, technological, regulatory
Are some value propositions specific to only a subset of customers? Which ones?
Crash Course Business Entrepreneurship: Value Proposition and Customer Segments (12:02)
Value Proposition Templates
Value Proposition Templates
Good basic value propositions:
(Product name) is a (short description of product) for (audience / customer segment) who want to (relieve pain and / or create gain).
Example. “HydroHeal is a water rehabilitation therapy center for injured athletes who want to reduce their recovery time.”
<product or service> helps <customers> solve <problem> by <solution>.
Good detailed value proposition: (Mad Libs from value proposition canvas)
Our <product or service>
helps(s) <customer segment>
who want to <jobs to be done>
by <verb (e.g. reducing, avoiding)> <a customer pain>
and <verb (e.g. increasing, enabling)> <a customer gain>.
Other templates that are good for some situations:
"We help [X] to [Y] by [Z]" - Steve Blank
For ____________ (target customer)
who ____________ (statement of the need or opportunity)
our (product/service name) is ____________ (product category)
that (statement of benefit) ____________ . - Geoffrey Moore
[Proven industry example] for/of [new domain]. - Dan and Chip Heath
Cheat Sheet with examples
Value Proposition Canvas
Value Proposition Canvas
The value proposition canvas is a tool to help complete the "Value Proposition" and "Customer Segment" sections of the business model canvas.
The Value Proposition Canvas introduction and video
Alexander Osterwalder: Mapping Customer Pains to Value Proposition (4:28)
The Value Proposition Canvas template (save blank to OneDrive)
The Value Proposition Canvas Google Doc
When signed in to Google: File -> Make a copy, then double click to add text
Customer Profile - describes a specific customer segment
Customer Jobs - describes what customers are trying to get done in their work and their lives, as expressed in their own words
Gains - describe the outcome customers want to achieve or the concrete benefits they are seeking
Pains - describe bad outcomes, risks, and obstacles related to customer jobs
Value Map - describes the features of a specific value proposition in a more structured and detailed way
List of all the products and services a value proposition is built around
Gain Creators - describe how your products and services create customer gains
Pain Relievers - describe how your products and services alleviate customer pains
Fit - when value map meets customer profile, products and services produce pain relievers and gain creators that match one or more of the jobs, pains, and gains that are important to your customer
You can use AI to help create a value proposition canvas.
For the right side:
Sample AI prompts:
In the context of JTBD theory, what are the "jobs" of (archtype)?
In the context of JTBD theory, what are the "pains" of (archtype)?
In the context of JTBD theory, what are some "gains" sought by (archtype)?
For the left side:
In the context of JTBD theory, how might (idea) relieve the "pains" of (archetype)?
In the context of JTBD theory, how might (idea) achieve desired "gains" of (archetype)?
Customer Relationships
Customer Relationships
How does the company...
Get customers
Keep customers
Grow customers
Crash Course Business Entrepreneurship: How to Build Customer Relationships (10:43)
How do I use the Customer Relationships building block of the Business Model Canvas? strategyzer
Customer Segments
Customer Segments
For whom are we creating value?
Who are our most important customers?
What are the customer archetypes?
Demographic
Psychographic
Geographical
Behavioral
See Value Proposition Canvas section above
Crash Course Business Entrepreneurship: Value Proposition and Customer Segments (12:02)
How do I use the Customer Segments building block of the Business Model Canvas? strategyzer
Channels
Channels
How does the product get to the end user (website, storefront, etc.)?
For a website, how do users get to the site (paid search, social marketing, etc.)?
Crash Course Business Entrepreneurship: How to Communicate with Customers (10:28)
How do I use the Channels building block of the Business Model Canvas? strategyzer
Revenue Streams
Revenue Streams
Where does the money come in from?
Crash Course Business Entrepreneurship: Revenue Streams (10:47)
How do I use the Revenue Streams building block of the Business Model Canvas?
7 types
Key Partnerships
Key Partnerships
No entrepreneur does it alone
strategic alliances
joint ventures
mentors
advisors
Crash Course Business Entrepreneurship: How to Seek Help and Find Key Partners (11:14)
How do I use the Key Partnerships building block of the Business Model Canvas? strategyzer
Key Activities
Key Activities
What does the company do?
How is the value proposition delivered?
What are the tasks that absolutely need to be done to keep the business going and keep your competitive advantage?
Think big picture at first.
Crash Course Business Entrepreneurship: The Core of a Business - Key Activities & Resources (10:01)
How do I use the Key Activities building block of the Business Model Canvas? strategyzer
Key Resources
Key Resources
What does the company need?
Financial resources (cash, line of credit, stock)
Physical resources (buildings, cash registers, etc.)
Human resources (key employees, people with specific skills)
Intellectual property (ideas that can be patented or copyrighted)
If you have a product, what are the necessary steps to produce it?
If you have a service, what are you offering customers and what do you have to do in order to provide it?
How are you sharing updates and information with your customers, or how are they getting your offering?
What's most important to creating revenue?
Crash Course Business Entrepreneurship: The Core of a Business - Key Activities & Resources (10:01)
How do I use the Key Resources building block of the Business Model Canvas? strategyzer
Cost Structures
Cost Structures
Cost of production / doing business
Fixed or Operating costs vs. variable or Direct costs
Crash Course Business Entrepreneurship: Expenses & Costs - How to Spend Money Wisely (10:53)
How do I use the Cost Structure building block of the Business Model Canvas? strategyzer
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