Business Model Canvas (BMC)
Much has already been written about Business Modelling and using a Business Model Canvas (BMC). But what exactly is it? And more importantly, why is it such a useful tool for entrepreneurs?
Alexander Osterwalder developed the BMC as a simple way to create a clear business plan. On a single sheet of paper, you map out 9 building blocks to show:
- How you create value
- How you deliver it
- How you make money from it
The result? A clear blueprint of your strategy.
The power lies in its simplicity. The BMC works for any company—large or small, startup or established business. It forces you to reflect on questions such as:
- Why am I doing what I do?
- Is my offering still profitable?
- Am I still providing the value to customers that I intended?
- Do we do everything ourselves, or is it better to collaborate with partners?
An exercise that not only keeps you sharp but also delivers concrete decisions.
The model consists of three main parts:
- Value Proposition: What is your added value?
- Right Side: For whom do you create value?
- Left Side: How do you deliver that value?
- Bottom: How do you make it financially viable?
Within these, there are 9 building blocks. Here’s a brief explanation with example questions:
1. Value Proposition
What makes you unique? Why do customers choose you over competitors?
- What problem do you solve?
- What are customers willing to pay for?
- What do customers say in feedback or testimonials?
2. Customer Segments
For whom do you create value? Define your target groups as concretely as possible.
- Who are your most important customers?
- What needs do they have?
3. Customer Relationships
How do you maintain contact with your customers?
- Personal or digital?
- What kind of relationship do they expect from you?
- How do you ensure they come back?
4. Channels
How do you reach customers and how do they discover your offerings?
- Via website, social media, store, word of mouth?
- Which channels work best?
- How do you provide support and keep customers informed?
5. Revenue Streams
How do you make money? Think about the future too.
- What are customers paying for now?
- What will they pay for in the future?
- How do they pay and how would they like to pay?
6. Key Activities
What do you do to make your business model work?
- Which activities create your added value?
- What do you need to reach customers and maintain relationships?
7. Key Resources
What do you have in-house to create value?
- Physical (buildings, machines)
- Intellectual (patents, data)
- People (team and their expertise)
- Financial
8. Key Partners
Who do you collaborate with to strengthen your model?
- Which partners truly add value?
- Which are crucial for your model, and which are just suppliers?
9. Cost Structure
What are the biggest costs in your model?
- Fixed: staff, marketing, transport
- Variable: raw materials
- Where can you save or achieve economies of scale?
