The Business Model Canvas is a strategic management and entrepreneurial tool. It allows you to describe, design, challenge, invent and pivot your business model. This concept allows anyone currently in business, or starting a new business, to think through the business model of their organization, competitors, or any other enterprise.
The 9 building blocks of the Business Model Canvas include:
- Customer Segments - For whom are we creating value? Who are our most important customers?
- Value Propositions - What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve?
- Channels - How are we currently reaching out to our customer segments, and how do they want to be reached?
- Customer Relationships - What type of relationship does each of our customer segments expect us to establish and maintain with them? Which ones have we established and how are they integrated with the rest of our business model?
- Revenue Streams - For what value are our customers really willing to pay? For what do they pay currently pay and how are they paying? How much does each revenue stream contribute to overall revenues?
- Key Resources - What key resources do our value propositions require? Our Distribution Channels, Customer Relationships, and Revenue Streams?
- Key Activities - What key activities do our value propositions require? Our Distribution Channels, Customer Relationships, and Revenue Streams?
- Key Partnerships - Who are our key partners? Who are our key suppliers? Which key resources are we acquiring from partners? Which key activities do partners perform?
- Cost Structure - What are the most important costs in our business model? Which key resources and key activities are most expensive?
Learn More About the BMC
The Venture School program
is a 6-7 week program, put on by the University of Iowa, that emphasizes real-world entrepreneurship and takes you through the Business Model Canvas in a collaborative environment. Each year, multiple cohort sessions take place around the state. The program works for startups, small businesses, non-profits, and corporate innovation teams. For more information on participating in a Venture School near you, view their schedule.