0 to 100 What is a business model canvas + Familiarization with a sample business model canvas

In this article, we aim to answer the question, “What is a Business Model Canvas?” and also explore an example of a business model canvas. Certainly, all business managers seek to optimize their operations, and for this purpose, they employ various strategic and principled methods. One of the recommended approaches for this is the use of the Business Model Canvas.

In this article, we plan to share some golden points about the Business Model Canvas with you. If you have a new idea for defining a business but don’t know where to start, reading this article is recommended. Stay with us…

What is a Business Model Canvas?

To answer the question, “What is a Business Model Canvas?” we can say that the Business Model Canvas, also known as Business Model Canvas in English, is a type of business management tool. This tool, by addressing 9 different sections of a business, describes its revenue generation and overall plan. It should be noted that this management tool is also known as the business canvas. In fact, the Business Canvas is a one-page document with 9 different sections, each defining a separate element of the business. By examining this document, one can assess the general direction and idea of a business and understand its management type.

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History of the Business Model Canvas

The Business Model Canvas, or simply the business canvas, was first introduced in the book “Business Model Generation” by Alex Osterwalder and Yves Pigneur. This tool is described as a practical and simple method for planning, developing, and even testing various businesses in this book.

It should be noted that the “Lean Business Canvas,” inspired by the Business Model Canvas, is recognized as another practical method for evaluating businesses. Unlike writing a business plan, which often takes a long time to prepare, the Lean Business Canvas is a method that sketches a business idea in just a few hours and allows us to evaluate it.

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Different Sections of the Business Model Canvas

In the previous sections, we mentioned that this canvas is composed of 9 different parts. The various sections of the Business Model Canvas are:

Customer Segments

In this section, we identify who the customers or target audience of the business are. This can be done using customer personas and categorizing customers based on factors such as gender, age, habits, interests, etc. Once the target audience is identified, we can offer various plans to meet the needs of each group of customers.

Remember that every business targets a specific group of customers from among the following groups:

• Mass Market
• Segmented
• Niche Market
• Multi-Sided Markets
• Diversified

After identifying a specific group of customers, we must act to meet their needs and provide appropriate solutions.

Channels

This section determines how the company will communicate with each group of customers. As you know, there are various ways to establish communication with customers, such as:

• Personal assistance: In this method, communication with customers is done in person or using phone calls, emails, etc.
• Dedicated personal assistance: In this method, a personal assistant exists for each customer to communicate with them.
• Automated services: This type of communication uses automated devices to provide services to customers.
• Self-service: In this type of communication, the business does not interact with customers directly but only provides them with the necessary means of communication.
• Co-creation: In this type of communication, the company allows customers to participate and collaborate in various processes.
• Communities and various forums: This type of communication is carried out by online forums where audiences can solve each other’s problems with mutual help.

Revenue Streams

This section explains how the company generates revenue through the value propositions it offers. This can be done in various ways such as advertising, recurring income, usage fees, subscription fees, renting products or services, licensing, etc.

Key Activities

This section of the Business Model Canvas specifies the activities and tasks that need to be performed to achieve the goal. For this, we prepare a list and write down activities in different aspects of the business. These activities should be categorized into three main groups:

• Production
• Problem-solving
• Platform or network

Key Resources

In this section, we must identify the main and necessary resources for carrying out key activities. These resources have various types, some of which are mentioned below:

• Physical resources (equipment, warehouse, etc.)
• Human resources (employees)
• Intellectual resources (copyrights, registered brands, etc.)
• Financial resources (cash capital, etc.)

Key Partners

This section refers to the partners who assist the business in carrying out key activities. As you know, partnerships come in various forms like joint investment, strategic alliance, co-opetition, and buyer-supplier relationships. In the Key Partners section, we should mention the type of partnership and the intended partner.