For many people, creating a traditional business plan seems like a chore. However, many business experts agree that a business plan is an important part of any startup strategy.

Not only are they often required for a business to receive financing, but they also act as a blueprint to your business, helping you stay on track. Though many lenders may require businesses to submit a traditional business plan to receive funding, many entrepreneurs now using the Business Model Canvas. This template offers a unique alternative to those looking to create a dynamic and engaging business model.

What is the Business Model Canvas?

The Business Model Canvas was originally developed by Alexander Osterwalder in 2008. It’s a strategic management or lean startup template for developing new—or updating existing—business models. The Business Model Canvas template is visually designed to help you develop an actionable business model, focusing on 9 different segments. This document gives you the opportunity to determine your:

  • Key partners
  • Key activities
  • Key resources
  • Value propositions
  • Customer relationships
  • Customer segments
  • Channels
  • Cost structure
  • Revenue streams

Why would I use it?

The Business Model Canvas is especially useful for business owners who are visual. In fact, some put the template on a white board, filling it in and editing as they learn more about their business.

Interested in trying it out?

The Business Model Canvas is available for free, through Strategyzer. Learn more about the Business Model Canvas and how you can use it for your startup or small business,

Or contact the Michigan SBDC to work through the business model canvas one-on-one with a business consultant.

 

In Business