If they are not taken off the paper, ideas are just ideas. In the business world, more than having creativity, it is necessary to rely on good strategies and an action plan. For this, the Business Model Canvas is a very interesting model that can help from aspiring entrepreneurs to the most experienced professionals.

Therefore, if you are preparing to set up a business plan, but still do not know where to start, continue reading and discover on the Codeblog how this tool can revolutionize the creation of your startup and transform your company's operations.

What is the Business Model Canvas?

Seen as a helpful tool in creating and developing a business model, the Business Model Canvas was created by Swiss Alexander Osterwalder in conjunction with the skills of more than 200 consultants around the world.

The final result of the process consists of a diagram that allows a broad and strategic visualization of the entire evolution of a business.

In short, the Business Model Canvas is a kind of board, which integrates nine parts to represent the main areas of a company: customers, offers, resources, and financial viability.

The Importance of the Business Model Canvas

Ideal for those who want to start an entrepreneurial journey, the Business Model Canvas is, above all, an innovation tool that can even be very well applied in existing enterprises that need to readjust their business model.

Based on a very practical and interactive method, the Canvas presents, in graph format, how a company operates and facilitates the structuring of ideas and actions themselves. For companies in the early stages, the Business Model Canvas is fundamental from several perspectives, including when segmenting customers (a crucial factor in developing a business plan).

The BMC can also be used in already structured businesses and contributes significantly to performance evaluation, as it promotes objective visualization over several areas and fundamentals of an organization.

How to Apply the Business Model Canvas to Your Business?

By now, you have understood that the BMC is a graphic tool divided into nine parts. Each of them has the mission to demonstrate how a business needs to act to meet the needs of its target audience and ensure prominence in the market.

To apply the Business Model Canvas in the daily routine of a startup, it is possible to create your own board or use some ready-made templates, which invariably involve the 4 pillars of a company. They are:

• How? Infrastructure pillar;

• What? Offer pillar;

• Who? Customer pillar;

• How much? Finance pillar.

In this context, the first step is to set up a board and start entering data. To make a clear division, bet on colors and elements that facilitate visualization.

Business Model Canvas Blocks

To structure your board assertively and achieve the desired results, you need, first of all, to know the 9 blocks of the tool well. Learn more about each of them in the paragraphs below:

1. Value Proposition

In the first block, it is necessary to clarify, objectively, what your company provides to customers, as well as all the differentials, advantages, and benefits that lead to closing deals and customer loyalty.

2. Market Niche

Which slice of the market do you want to reach and what type of customer do you want to attract? The market niche, in short, is based on reflection on these questions. Think about the profile of your enterprise, its pains, and needs.

3. Communication Channels

For your company to communicate with customers effectively, defining communication, distribution, and sales channels is essential. Analyze market options to establish the best ways to deliver value and dialogue with your audience.

4. Customer Relationship

Think about how you want to attract, win over, and retain your customers. Then, test some alternatives and choose the most suitable methods to generate good results.

5. Revenue

How much and how will your customers be able to pay for your product or service? Think about business revenue and point out all the ways to ensure the profitability of your enterprise, such as, for example, subscriptions and licenses.

6. Key Resources

What assets will be used to execute your plan? What resources will be applied to your strategy? List all kinds of skills, manpower, equipment, and necessary resources.

7. Key Activities

List all the actions and activities that will be developed to get your project off the paper. This action plan is essential to ensure the assertiveness of the business operation and the achievement of the proposed goals.

8. Key Partners

Identify the need for partnerships or analyze the possibility of outsourcing some stages, such as those related to IT, which involve the development of websites and apps. Take the opportunity to think about projects that can help your startup take off.

9. Cost Structure

Last but not least, visualize all the costs necessary for the operation of your business and the maintenance of operations. List expenses targeted at communication channels, labor, machinery, marketing, and suppliers.

In conclusion, we hope that this content has clarified the importance of the Business Model Canvas in developing a startup. If this article was interesting to you, share it on your social networks and take the information to other people who might be interested.

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