A Business Model Canvas , from the English “Business Model Framework”, is a method for creating businesses in which the characteristics that the company must have in order for its products or services to capture market value are defined.
Therefore, the Business Model Canvas is a method that helps the entrepreneur to put the business format on a screen . This model can be known through the book ” Business Model Generation ” by Yves Peigner and Alexander Osterwalder.
According to this model, the central idea is based on creating value for the users of the product or service offered by the company.
In addition, the model aims to create innovative businesses, as well as improve the style of business in operation, but already outdated.
Components of the Canvas model
This tool is used to create or improve a business project, presenting the structure of the company in a framework.
The frame structure can be printed on a blank template, such as the following:
From the table, it is possible to plan all the main characteristics of the business, answering four questions, which form the 9 components of the model, namely:
- Value proposal
This section defines the products or services that the company intends to offer in the market it intends to enter.
Furthermore, this method aims to create goods that add value to consumers, solving problems and satisfying their needs with the commercial value proposition.
- customer segments
Along with the Value Proposition, it is necessary to define which customer groups the business should be inserted into, that is, which customer segments you want to reach with your product.
- Relationship with clients
This component defines what type of relationship the company intends to have with each customer segment, through the trust that can be transmitted to the market with the commercial brand.
In this part, the means for the product to communicate and reach consumers are defined, either by the definitions of advertising, physical or virtual stores, and the logistics used.
- main associations
The Major Partnerships component selects the major partners and vendors chosen to assist in business activities.
- key activities
This component defines the main actions that put the project into practice, considering the most essential production projects and the services provided to commercial clients.
- key features
Here the main resources that start up the business are classified, that is, so that the key activities occur with the raw materials and human capital defined in this component.
- sources of income
The sources of income appear with the analysis of the customer segments that the company wishes to reach, which represents the capital that the product can obtain by offering value to its consumers.
- cost structure
The Cost Structure describes the main sources of costs generated by the resources used by the company to create value with its products or services and generate its income.
The board can be modeled in a large format and easily accommodate new ideas the group may have, such as on a whiteboard or with an easy post-it application.