The 9 Building Blocks
The Business Model Canvas categorizes the processes and internal activities of a business into 9 separate categories, each representing a building block in the creation of the product or service. These categories represent the four major aspects of a business; customers, offer, infrastructure, as well as financial viability.
Why we use it
- To quickly draw a picture of what the idea entails.
- It allows us to get an understanding of your business and to go through the process of making connections between what your idea is and how to make it into a business
- It looks at what kinds of customer decisions influence the use of your systems.
- It allows everyone to get a clear idea of what the business will likely be.
How to use it
Value Proposition: The Value Proposition is foundational to any business/product
Customer Segments: Customer Segmenting is the practice of dividing a customer base into groups of individuals that are similar in specific ways, such as age, gender, interests, and spending habits.
Customer Relationships: Customer Relationships are defined as how a business interacts with its customers.
Channels: Channels are defined as the avenues through which your customer comes into contact with your business and becomes part of your sales cycle.
Key Activities: The Key Activities of your business/product are the actions that your business undertakes to achieve the value proposition for your customers.
Key Resources: Key means the resources your business requires to do business.
Key Partners: Key Partners are a list of other external companies/suppliers/parties you may need to achieve your key activities and deliver value to the customer.
Cost Structures: Your business cost structure is defined as the monetary cost of operating as a business.
Revenue Streams: Revenue Streams are defined as the way by which your business converts your Value Proposition or solution to the customer’s problem into financial gain.