How to create a business model canvas 1 page business plan
Whether your just starting your business or you've been in business for many years, creating a 1 page business plan can be a useful tool for gaining clarity and creating a foundation for success in your business. It can be very easy to get busy and lose sight of the key components of your business that make you successful.
Our preferred method for creating a business plan is the business model canvas. It helps organizations visualize, design, and innovate their business models. Its effectiveness lies in its simplicity so that you don't get lost in the details of creating a conventional business plan.
Below are the steps/questions you need to walk through when you create your business model canvas. Often this is laid out visually with sticky notes or on a piece of paper as in the picture below. Alternatively, subscribe to our newsletter by clickng the button below and we will send you a free template.
1. Value Propositions
Describe the bundle of products and services that create value for a specific customer segment.
Questions to Consider:
- What value do we deliver to the customer?
- Which one of our customer's problems are we helping to solve?
- What bundles of products and services are we offering to each customer segment?
2. Customer Segments
Identify the different groups of people or organizations an enterprise aims to reach and serve.
Questions to Consider:
- For whom are we creating value?
- Who are our most important customers?
3. Channels
Explain how a company communicates with and reaches its customer segments to deliver a value proposition.
Questions to Consider:
- Through which channels do our customer segments want to be reached?
- How are we reaching them now?
- How are our channels integrated?
- Which ones work best?
- Which ones are most cost-efficient?
4. Customer Relationships
Describe the types of relationships a company establishes with specific customer segments.
Questions to Consider:
- What type of relationship does each of our customer segments expect us to establish and maintain?
- How are these relationships integrated into our business model?
- How costly are they?
5. Revenue Streams
Represent the cash a company generates from each customer segment.
Questions to Consider:
- For what value are our customers really willing to pay?
- For what do they currently pay?
- How are they currently paying?
- How would they prefer to pay?
- How much does each revenue stream contribute to overall revenue?
6. Key Resources
List the assets required to offer and deliver the previously described elements.
Questions to Consider:
- What key resources do our value propositions require?
- What resources are essential for our distribution channels, customer relationships, and revenue streams?
7. Key Partners
Identify the network of suppliers and partners that make the business model work.
Questions to Consider:
- Who are our key partners?
- Who are our key suppliers?
- Which key resources are we acquiring from partners?
- Which key activities do partners perform?
8. Key Activities
Outline the most important activities a company must do to make its business model work.
Questions to Consider:
- What key activities do our value propositions require?
- What activities are most important in our distribution channels, customer relationships, and revenue streams?
9. Cost Structure
Describe all costs incurred to operate a business model.
Questions to Consider:
- What are the most important costs inherent in our business model?
- Which key resources are most expensive?
- Which key activities are most expensive?
Creating the Business Model Canvas
- Gather Your Team: Collaborate with your key team members to ensure diverse perspectives and comprehensive coverage of all aspects.
- Start with the Customer Segments: Identify who your customers are. Think about different segments that you might serve.
- Define Value Propositions: Clearly outline what value you are providing to each customer segment.
- Identify Channels: Determine the best ways to deliver your value propositions to your customer segments.
- Establish Customer Relationships: Decide how you will build and maintain relationships with your customers.
- Define Revenue Streams: Identify how you will earn money from your value propositions and customer segments.
- List Key Resources: Identify the essential resources needed to create your value propositions.
- Determine Key Partners: Identify partners and suppliers that are essential to your business operations.
- Outline Key Activities: List the critical activities required to deliver your value propositions.
- Calculate the Cost Structure: Understand the costs associated with each key activity, resource, and partnership.
Tips for Creating an Effective Business Model Canvas
- Be Concise: Use bullet points and short statements. The canvas is a high-level overview.
- Be Visual: Use sticky notes or a whiteboard to allow for easy changes and rearrangements.
- Be Collaborative: Involve team members from different departments for a broader perspective.
- Iterate: Regularly update the canvas as your business model evolves.
By following these steps, you'll create a comprehensive and clear Business Model Canvas that can guide your business strategy and operations effectively.
We can help you create your business model canvas and then come up with a plan to execute on your business plan. Learn more here.