A Business Model Canvas (BMC) is an opportunity for a business to iron out main value propositions, strategic vision and ultimately come up with an identifiable market segment.
The BMC approach is broken down into 9 sections, each of which hand holds you through the process of defining how your business activities can align with your business model and creates a blueprint for delivering your intended value to customers.
The following is a break down of definitions in the 9 sections:
Key Partnerships
Businesses have key partnerships to optimize operations, and to increase focus in core activities. Who are your key business and strategic alliances in your business?
Key Activities
What are the most important activities executing a company's value proposition? e.g. For a delivery business, a key activity would be organizing logistics and truck drivers to deliver products for end consumers.
Key Resources
The resources necessary to sustain and support the business. E.g. computer infrastructure, human capital.
Customer Segments
Who and what type of customers does the business intend to serve?
Customer Relationships
A business will choose to communicate with its customers through people or automated means.
Channels
The channels section defines how an organization communicates with and provides value to the targeted customer segment of their business.
Revenue Streams
In this stream, we explore how a business generates income to fuel operations. This includes pricing mechanism, and revenue models.
Cost Structure
This building block represents all the costs a business is to incur. Key questions to ask yourself is what are the fundamental costs derived from the business model?
Value Proposition
Creatiing a value proposition is to define why a customer should pick one product over another citing the unique value the product provides.
We at Altitude Labs have prepared a video that will further elaborate on the above points. Feel free to leave us a comment after you're done!