The Business Model Canvas (BMC) is a strategic management tool to quickly and easily define and communicate a business idea or concept.
It is a one page document which works through the fundamental elements of a business or product, structuring an idea in a coherent way.
The right side of the BMC focuses on the customer (external), while, the left side of the canvas focuses on the business (internal).
Both external and internal factors meet around the value proposition, which is the exchange of value between your business and your customer/clients.
Why we use it?
- To quickly draw a picture of what the idea entails.
- It allows us to get an understanding of your business and to go through the process of making connections between what your idea is and how to make it into a business.
- It looks at what kinds of customer decisions influence the use of your systems.
- It allows everyone to get a clear idea of what the business will likely be.
The Key Activities of your business/product are the actions that your business undertakes to achieve the value proposition for your customers.
Questions to ask:
- What activities does the business undertake in achieving the value proposition for the customer?
- What is the resource used?
- Distribution of product?
- Technical development?
- Offer resources (human/physical)?
- What actions does it take you and/or your staff to achieve value exchange?
- Web development
Next you should think about what practical resources are needed to achieve the key activities (actions) of the business?
Key means the resources your business requires to do business.
These resources are what is needed practically to undertake the action/activities of your business:
- Office space
- People (staff)
- Internet connection
- Car Parts
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.
This moves into the realm of ‘if my business cannot achieve the value proposition alone, who else do I need to rely on to do it?’.
An example of this is ‘if I sell groceries to customers, I may need a local baker to supply fresh bread to my store’.
They are a key partner to achieve the value my business promises to the customer.
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