9 Blocks of Business Model Canvas

Dr. Shekhar Pawar

Founder & CEO @ SecureClaw & GrassDew IT Solutions 🛡️ Doctorate in Cybersecurity from SSBM Switzerland 👉 We Offer🕵️Virtual CISO | VAPT | SAST | BDSLCCI | Software Development | Teleservices

Published Apr 5, 2019

If you are a going to start a business or start-up and want to know where to start or you are an established company trying to find where you are lacking - Business Canvas Model is the best way to figure it out.

Business Canvas Model is a strategic plan where all the key drivers of business are fitted in to one single page for successful operation of business. It gives every stack-holder a clear idea about how your business runs.

Value Proposition:

The value of the company is not how the company’s product or service is the best in market because they either have superior quality or provide best service but that’s not it. Instead it’s about how your product or service is solving customer’s problem or how your product is satisfying your customer at a given value.

For Example: Apples's value proposition is its brand, its unique design and performance.

2. Customer segmentation:

Customer segmentation is defining the customer persona as in defining who would buy your product, why would they buy your product. Defining their demographics such as age, occupation, sex, geographical locations etc. Every detail that you can figure out such that you have a clear picture not just in mind but on paper about your customer persona.

For Example: BMW segmented its customers into baby boomers and professional yuppies who wanted a car to show off their success through a brand.

3. Distribution channels:

How your products or services are reached to customers from your company. It could be physically like stores or salesforce or visually like your website or how you advertise or nowadays buzz omni channel. An effective way to reach maximum number of customers is to utilize your distribution channels well.

For Example: Red Bull the energy drink, creates new content that targets its young customers by providing adrenaline rush content that gets customer hooked up and crave for the brand.

4. Customer relationship:

How to reach customers, how to acquire them and then how to make them loyal customers. Defining customer journey is a way to answer this block.

For Example: Harley-Davidson is one of the brand that has most loyal customers and it is able to do so because they developed a strong brand community in the form of an inclusive owner's club called Harley Owners Group.

5. Key resources:

What are the assets that you need to run the business model. It could vary from anything like plant physical assets to customers database.

For Example: Google's key resources are google search engine, AdWords, Google suit. Google uses data as the key resource in running the business.

6. Partners:

Who are your partners, What are their key activities and Why do you want to make a partnership with them.

For Example: Spotify key activity is updating their platform and not create music so the deals that Spotify strikes with music producers can be called as partnerships.

7. Key activities:

What activities that you need the most to be expert at. Now that you know how to solve a customer’s problem or satisfy their need. You need to be expert at it to give them the best value through your products or service. What are the activities that you require to be expert at to are your key activities.

For Example, for any Social Media Platform like Facebook's key activities can be Platform Development and Data Center Operations Management.

8. Cost:

Preparing a budget of your activities that you have planned out for the next 3 or 6 months. figuring out what are the costs that are being incurred due to different activities.

For Example: Preparing a balance sheet with fixed and variable assets and Liabilities.

9. Revenue Streams:

Revenue streams are defined as your value propositions that can be converted into financial gains. How to make revenue through products. What strategy to be used to capture their value that is product is creating with customers.

For Example: LinkedIn generates revenue mainly on two models namely Subscription model ( Hiring, Learning and Development) and advertising( Marketing Solutions).

I have used it while I was about to start GrassDew IT Solutions Pvt Ltd. It is different story whether all written points works for you, but it gives big picture about your near future. I hope this article going to be useful for those who are not aware of this easy to use business model canvas.

GrassDew IT Solutions Pvt Ltd provides consulting services, software solution services, IT security services, digital marketing and knowledge services.

To know more about our services you can contact us at contactus@grassdew.com

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