What is the Canvas model and how to apply it to your business or project

Nowadays, the economic and social environment in which companies or any undertaking operate demands flexibility to adapt to circumstances and requires maximum innovation and maximization of actions, following an appropriate strategy.

When creating a new company or redesigning an existing one, it is very valuable and useful to have a map or roadmap that guides the process to achieve the final objectives. In this sense, create a Canvas model It is the perfect option for it.

In this article we are going to explain to you what it is and how you can apply the Canvas model to your company or business if you are self-employed or an independent professional. Attentive.

What is the Canvas model

The Canvas business model, also called Business Model Canvasis a visual tool that allows you to analyze – on the same sheet – the different elements that make a company economically viable.

As a curiosity it was created by Alexander Osterwalderwho, together with Ives Pigneur, used this instrument to give life to the book «Generación de Modelos de Negocio» (“Business Model Generation”, in English).

This is a model that must be practical, very simple and that must be understood by anyone, even if they do not have knowledge or training in business culture. With it you can analyze, but also describe and evaluate, the elements that are fundamental for a business. That is, thanks to this model it is possible to estimate from an economic point of view whether a business is viable and sustainable for a company.

As you may have seen, the model It is divided into nine modules which refer to each of the pieces that a company needs to obtain income. Let's look at them carefully.

Elements of the Canvas model

Business Model Canvas TemplateBusiness Model Canvas Template

These are the nine elements that should never be missing to develop a Canvas business model, which answer certain questions.

-Market segments or Clients. Who is your client? Who are you helping?

-Value proposal. What needs do you satisfy? What problems do you help solve? What do you offer?

-Channels. How does your proposal reach your target audience? This would encompass the strategy on social networks, among other channels.

-Relationship with clients. How do you get clients and interact with them?

-Sources of income. What income do you get? How much are they willing to pay?

-Key resources. What resources do you have to communicate your proposal?

-Key activities. What activities does your proposal require? What are you doing?

-Key partnerships. Who are your main partners?

-Cost structure. What are the costs of your business resources and activities?

How to create a Canvas model for a business or project

To create your own model you just have to fill out each of the nine modules. The most useful way is to follow the following order.

First, start on the right side of the model, which refers to the most emotional elements that have to do with the customer relationship:

1. Market segments or Clients. In this box you must describe who you help with your business. That is, indicate the market segments you are targeting and which one is the main one.

2. Value proposition. This box is essential. Here you will pay attention to what you offer and what your differential proposal is to distinguish yourself from the competition.

3. Channels. Here you will have to write down the channels through which you will be known, that is, the channels through which you will communicate your value proposition and make it reach your target audience.

4. Relationship with clients. In this case you will write down how you are going to relate to each of the customer segments.

5. Sources of income. Here you will have to define what you get and how much you think your clients are willing to pay for what you offer. You will have to define your sources of income.

Afterwards, you will move to the left side of the model that has to do with the most logical and efficient part of the business:

6. Key resources. Here you have to analyze what you have and think about the resources that are essential to create and communicate your value proposition. You will write down all the physical, human or financial resources you need to make the model work.

7. Key activities. In this case you will analyze what you do and what activities are necessary to launch your value proposition.

8. Associations or key partners. In this case you will have to think about who your main partners are, your strategic alliances to develop your business. For example, partners, suppliers, customer resources…

9. Cost structure. Finally, you will have to define how much everything costs you, that is, what are the most important costs of your key resources and activities.

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