Business Model Canvas (BMC)

What is the Business Model Canvas (BMC)?

If anyone wants to ask you to tell me the whole startup or (in general) your business within less than
10 minutes, the best thing you can do is to bring your business model canvas!

The Business Model Canvas is a modeling model, consists of 9 sections; altogether represents an entrepreneurship (startup or other businesses).

Who needs a Business Model Canvas?

Anyone who wants to start, rebuild, or manage a startup or any kind of entrepreneurship.

Why should we have a Business Model Canvas?

As we said, the business canvas will showcase your business in a very quick and
comprehensive way. Having such a tool also has the following benefits:

You can easily introduce your startup or business to the investor or your prospective business partners.
When your entire business is in short notice, you can easily write your business plan.
You can see your entire business from the top before you actually invest your fortune on a startup.

How to draw the Business Model Canvas?

In order to draw the BMC, 9 main sections of the business model canvas are to be addressed.
These sections are listed below:

Business Model Canvas

Clients section: In this section, as its name suggests, you will introduce your customers based on a series of features (market research articles, market target and market segmentation).
Proposed Value: In this section, you need to specify what values to bring to your customers. What advantages (such as good price, convenience, speed, etc.) are supposed to be offered to the customers to prefer your products or services over your rivals?
Distribution Channel: How do you distribute the goods or services or any other benefits you offer to your customers? What distribution paths do you provide to your customer?
Customer Relationship: Here’s how you connect with the customers and how do you want to keep that professional relationship?
Earnings flow: How would you sell to your customers based on each customer group? Subscription right? (Like newspapers), Service rights? License rights? (Like ShutterStock) or else?
Main business sources: Well, you set out the values, including services and products, and other benefits that you are supposed to offer the customers. In order to realize these values for the customers, what are the essential resources of financial, human resources, equipment, etc.?
Main activities: What are the main activities you need to do to bring the values you promised to the customers?
Key partners: Who are your business partners? In which areas? And how you forge a partnership with them?
Cost structure: Cost structure is necessary to start, survive and develop our business and includes three main branches:
One-time charges: like software purchases
Fixed costs: such as employee salaries
Variable costs: such as advertising costs

In order to practice what we have covered on the Business Model Canvas, we invite you to have a look at the two examples below on the Airbnb and LinkedIn platform: