What is business model canvas?

What is business model canvas? 

A business model canvas is a visual presentation of your business model, with all the key strategic elements. It’s an overview of your company, customers, revenue and more. It’s a good practice before jumping in your Business Plan.  

The 9-Step Business Model Canvas  

  • Customer Segments 
  • Value Propositions 
  • Channels 
  • Customer Relationships 
  • Cost Structure 
  • Revenue Streams
  • Key Resources
  • Key Activities
  • Key Partners 

Why is business model canvas so important? 

  • The BMC will help you to visualize what is important. 
  • Making sure all the sections are cover by going over each step. 
  • Quickly draw and clarify of what the idea is.
  • Allows you and others to get an understanding of the business will likely be.
  • Making the connections between what your idea is and how to make it into a “real” business.
  • Help to understand your customer decisions and segmentations. 

Value Proposition: 

Is the exchange of value between your business and your customer/clients.  

Questions to ask: 

  • What value do we deliver to the customer? 

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.  

Questions to ask: 

  • For whom are we creating value? 

Customer Relationships 

Customer Relationships is defined as how a business interacts with its customers. 

Questions to ask: 

  • What type of relationship does each of our customer segments expect us to establish and maintain with them? 


Channels are defined as which your customer encounters your business and becomes part of your sales cycle. 

Questions to ask: 

  • Through which channels do our customer segments want to be reached? 

Key Activities 

The Key Activities of your business (product/service) are the actions that your business undertakes to achieve the value proposition for your customers. 

Questions to ask: 

  • What key activities do our value propositions require? 

Examples: Consulting, Designing, Baking, Driving 

Key Resources 

Key means the resources your business requires to do business. These resources are what is needed to undertake the actions/activities of your business. 

Questions to ask: 

  • What Key resources do our value propositions require? 

Examples: Office space, Computers, People (staff), Car 

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. 

Questions to ask: 

  • Who are our key partners? 

Examples: Suppliers, Web Developer, Graphic Designer  

Cost Structures 

Your business cost structure is defined as the monetary cost of operating as a business. 

Questions to ask: 

  • What are the most important costs inherent in our business model? 

Revenue Streams 

Its basic, how do you gain revenue. There are many different revenue models. 

Questions to ask: 

  • For what value are our customers really willing to pay? 

Examples: Pay per product, pay for a service fee for service, fixed rate. 

There are some useful tools available that you can use to build your BMC: 




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