New technologies are changing the game in the business world. The desire for efficient and effective solutions has resulted in a reinvention of the traditional business plan.
The Business Model Canvas is “a strategic management and entrepreneurial tool. It allows you to describe, design, challenge, invent, and pivot your business model.” The goal of the canvas is to bring the traditional business plan (often an overanalyzed and outdated written document) into the 21st Century by making it a visual, brief, and actionable outline.
The canvas is a simple, one page tool that assists in the creation of a business model. It is free to download and can be used for presentations, consulting with clients, and more. The model is broken into nine categories:
- Key Partners
- Key Activities
- Key Resources
- Value Propositions
- Customer Relationships
- Customer Segments
- Cost Structure
- Revenue Streams
The Business Model Canvas is rooted in Business Model Generation, “a handbook for visionaries, game changers and challengers.” Co-author Alexander Osterwalder says, “The lines between industries are blurring, and a lot of new models are emerging. It's time for a better unit of analysis and a joint language to describe a process that every company goes through.”The book was co-authored by 470 Business Model Canvas practitioners to ensure relevance across industry and national boundaries.
Find additional information on the Business Model Canvas—and a free downloadable canvas—at http://businessmodelgeneration.com.
Content contributed by Jessica Loizzo, State of Ingenuity SourceLink (Wisconsin/Illinois).
State of Ingenuity SourceLink is a proud affiliate of U.S. SourceLink, America’s largest resource network for entrepreneurs.