Business Model Canvas: an alternative entrepreneurial plan

You often write an entrepreneurial plan for someone else to, for example, receive financing. The Business Model Canvas is for you and is an organised way to map your clients. Each enterprise is about conquering a client. How do you ensure that the client chooses you? The Business Model canvas focusses on that.

How does The Business Model Canvas work?

The business Model Canvas is created by Osterwalder and Pigneur and is an organised model that maps all business aspects on the basis of nine building blocks. This model shows where the most important links are and what aspects need to be addressed.

In the model it’s all about the distinctive value of an enterprise for the client. There are nine building blocks in relation to creating value, approaching clients and expenses and revenues.

1.Determining the correct target group and the needs (market segmentation)

2.Determining the value proposition: in other words the distinctive power of the products, and services in relation to the competition.

3.Looking at the nature and interest of the contact and the relation with the client.

4.Describing the marketing- and distribution strategy, including both the on –and offline channels.

5.Determining the revenue model, which means mapping where income is generated, not just now but also in the future.

6.Taking stock of all the company assets that are required to create the value proposition. For example equipment, patents, brands and people.

7.Determining the most important core activities of the enterprise to realise added value

8.Describing the partnerships that are important to be successful and to grow, with which the possible missing expertise also becomes visible.

9.Analysation of the expense structure of the enterprise, with attention for the fixed and variable expenses and where scale economies and savings can be realised.

The nine building blocks in a sketch.