The business model canvas is a tool I start all of my projects off with because in my business I work with new founders who are just getting their startups launched. They often come from deep tech or industry backgrounds and don’t have a solid understanding of the foundational elements of startup development. This canvas allows me to walk them through all 9 sections of the business model without overwhelming or confusing them.
The best thing about the canvas is that it lays out your entire business model on one page. You and your team can see everything so it’s easy to recognize how one section of your business model, like say your key resources, will impact another part of your business model like your cost structure.
Many investors I know say that they prefer to read a founder’s business model canvas before they want to see a business plan if they want to see one at all. So, in this article, I am going to give you a quick overview of this powerful tool and then break it down section by section for the Startup Studio model.
*If you’re unfamiliar with startup studios on what they are, read this article I wrote a few months back.
*It’s important that you have a good understanding of the Business Model Canvas. If you need a refresher, here is an article I wrote not too long ago about the 9 building blocks of the business model canvas.
Okay, now, let’s jump in.
This is what the canvas looks like. It has 9 parts and I personally like to look at it from right to left.
Starting with Customer Segments, I move on to Channels, Customer Relationships, Value Proposition, Key Activities, Key Resources, Key Partners, Revenue Streams, and finally, I design the Cost Structure.
I like to do it this way because knowing who your customers are helps you understand how you will reach them which are your “channels” which help inform the type of relationship you need to have with them, which influence what you need to offer to keep them happy, and this helps you map out what activities will go into producing your value proposition…