What is the Business Model Canvas?
16 February 2021
The Business Model Canvas identifies the assumptions you make about the way your business works, testing those assumptions is crucial.
- Steve Hobbs, Asking Better Questions
How can the Business Model Canvas help business leaders, owners and entrepreneurs plan for success?
Okay, so let’s start with a simple question - why would you want to use the Business Model Canvas?
It’s really rewarding to meet people who are passionate about business and their reasons behind starting a venture, it’s great and is genuinely exciting. Sometimes, though, it can also sound a lot like ‘blah, blah, blah’ and that’s not good when you’re trying to engage with someone who might have something important to contribute to your business.
“Every business should be forced to go through the Business Model Canvas as it makes things simpler.”
- Entrepreneur, Nottingham Trent University Business School
When you’ve got to present your ideas to people who matter, a clear and precise description will be better and more actionable by them. The benefit of the Business Model Canvas is it captures in a structured way the elements that combine to make your business work. Someone who is interested in what you’re saying can quickly focus on what’s important to them and ask questions to find out more.
What is a business model?
The dictionary definition of a business model is:
“A plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products and details of financing.”
What aren’t business models?
Sometimes, it’s just as easy to define what they aren’t. Business models are not plans, they don’t talk strategy or forecast finances.
The two are linked but a business model helps you to move quickly, to test your thinking and incorporate feedback, it’s a way of capturing thought and acting on it.
Business plans are for the future while models are about the here and now.
At all times, consider how components fit together and use evidence to understand your current business model, what will need to change as you diversify?
Book your place for 3rd March: How to Use the Business Model Canvas
