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What is a business model canvas?
A business model canvas is a management tool used by both large and small companies to map out a business model. Fill out the 9 easy steps to make sure you’re on track, align your team and attract investors.
Free business model canvas template
Why is a business model canvas important?
1. Align your team
A business model canvas is a hands-on tool which gives the whole team a common direction and helps you reach your goals. You can even set it up with your team to foster understanding and creativity within your company.
2. Attract investors
A business model canvas helps you present your idea to investors, and showcases your business model in a clear and structured manner, while also demonstrating that you’ve mapped out every part of your strategy.
3. See opportunities and pitfalls
Putting your ideas down on paper lets you see opportunities you haven’t thought of yet, as well as pitfalls that you want to avoid. A business model canvas also ensures that you’re ready to launch your business.
See also: What is a business plan?
Download the business model canvas template
What do you use the business model canvas for?
A business model canvas is a one-page business plan. Created by Alexander Osterwalder, it’s one of the most popular business models on the market and helps entrepreneurs develop an idea into a validated concept and communicate that idea to employees and investors.
The business model canvas helps you answer some very important questions, such as
- who are your customers?
- who are your partners and competitors?
- what are you going to sell?
- how are you going to sell it?
- how are you going to get paid?
- how are you going to deliver the products or services?
How to use the free business model canvas template
These are the 9 building blocks in the template. Here’s how to use them.
1. Customer segments
Who are your customers? Are you going to be focusing on B2B or B2C or both? What are the characteristics of the businesses and/or people you want to target? How big is the market?
2. Value proposition
What value do you provide to your customers? Think about what problem you’re solving for your customers. If you’re selling a product or service to another business, you can think of it in terms of helping them achieve their value proposition.
3. Channels
How are you going to tell your customers about your value proposition? Which channels are you going to use to reach them: sSocial media, events, TV, radio, Google, etc.?
4. Customer relationships
What kind of relationship do you have with your customers? Is it in person, over the phone or online? You can create a user journey map to map out all the touch points you’ll have with the customers. This will also help you see where you can automate processes, by using AI, setting up auto-replies, or creating great content etc.
5. Revenue streams
How will you get paid for the value you provide to the customer? What pricing structure will you have? A flat fee, price per product, subscriptions, freemium etc.?
6. Key resources
What resources are required to do the key activities in your business? If you run a photography business, the resources could be lighting equipment, studios, cameras, photography courses, and Photoshop licenses.
7. Key activities
What activity does your business do to deliver on the value proposition? If you run a photography business, then your key activity will be taking photos. If you run a delivery service, then you’ll be driving a lot. Are you selling your time, your expertise, one or more products, a technical development etc.?
8. Key partnerships
Which suppliers do you need to perform your key activities and deliver your value proposition? And who can you outsource work to, in order to save time and resources?
9. Cost structure
How much does it cost to perform your key activities and deliver your value proposition? This includes all costs included in your key activities, as well as additional costs such as legal costs, insurance costs, and your time as well.
Pro tip: Update your business plan
Remember to update your business model canvas as you launch and scale your business. Your business isn’t static, so your business model canvas shouldn’t be either!
As your company changes, so should the tools you use. With Conta, you can send invoices for free and follow up on payments easily.
Business model canvas example
Advantages of using this template
Make quick decisions
The free template is user-friendly and intuitive, and easily lets you pin down your business idea.
Save time
Using a business model template to plan your strategy lets you validate your idea early on and pivot where necessary.
See the whole picture
The business model template gathers everything about your business on one page, and helps you launch a successful business
Frequently asked questions
What is a business model?
A business model is an overview of how your company is going to create and deliver value for customers. The business model canvas is only one method for outlining a business model, but it’s useful as it captures all the essentials on one page.
See also: 10 things to do before starting a business
What is a business plan?
A business plan is a detailed document that shows how you’re going to reach the goals in your business model. A business plan can include budgets, marketing plans, market research, financial projections etc.
What is the difference between a business plan and a business model?
A business model shows how you’re going to deliver value to customers, while a business plan is a detailed strategy of how you’re going to reach the goals in your business model.
Why is a business model canvas important?
A business model is helpful to finalize your business idea, letting you both see opportunities and pitfalls. It’s also a useful tool to align your team and create a shared understanding within the business. Lastly, it’s very helpful when you want to communicate your idea and get investors on board.
Can I make a business model canvas in PDF or Word?
You can make your own business model canvas, or you can download our free PDF template. Note that if you make it in Word, it’ll be a bit more difficult to set it up correctly. If you want to make a PDF template, then you need a PDF editor.
Work smarter, not harder
As your company changes, so should the tools you use. Invoice templates or invoice generators might work at the start, but as you scale your business, you should invest in invoice software to easily and quickly invoice your clients.
With Conta you can send invoices for free, keep track of all your invoices and easily follow up on overdue payments.
Send invoices for free