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The Business Model Canvas is a strategic management tool used to visualize and develop new or existing business models.
It is a one-page framework that helps entrepreneurs and business leaders to understand, design, and communicate the key metrics of a business model in a concise and structured format.
Key Metrics in Business Model Canvas
The canvas consists of nine building blocks that represent the key aspects of a business.
- Customer Segments
- Value Proposition
- Channels
- Customer Relationships
- Revenue Streams
- Key-Resources
- Key-Activities
- Key-Partnerships
- Cost Structure
1. Customer Segments
Identifies the different groups of customers or market segments that the business aims to serve.
- Who are your most significant customers.
- What are your various kinds of clients.
2. Value Proposition
Describes the products or services offered by the business and the value they provide to customers.
- What exactly is your organization attempting to provide for clients.
- What issue is your organization attempting to address and what needs are your organization fulfilling.
3. Channels
Specifies the channels or methods through which the business delivers its value proposition to customers and communicates with them.
- How would you reach at your client sections.
- What channels are use.
4. Customer Relationships
Defines the types of relationships the business establishes and maintains with its customers to acquire, retain, and grow their base.
- Does your organization regularly communicate with clients.
- How much help is given by your organization.
5. Revenue Streams
Outlines the various sources of revenue generated by the business model, including pricing strategies and monetization methods.
- what the channels do your clients pay.
- Does your organization have different strategies for creating income.
6. Key-Resources
Identifies the key assets, resources, and capabilities required to deliver the value proposition and operate the business successfully.
- Does your organization require critical capital or HR.
- What explicit resources are important to work your business and convey.
7. Key-Activities
Describes the core activities and processes that the business must perform to create and deliver value to customers.
- What key activities are important to convey your incentive.
- What exercises put your organization aside from others.
- Do you have to smooth out to keep expenses and costs low.
8. Key-Partnerships
Identifies the external partners, suppliers, alliances, or networks that the business collaborates with to leverage resources and capabilities.
- What key exercises are performed by these accomplices.
- What key advantage does your organization get from these accomplices.
9. Cost Structure
Outlines the costs and expenses associated with operating the business model, including fixed costs, variable costs, and economies of scale.
- What are the critical costs in your organization.
- How do your expenses connect with your income streams.
- your organization centered around cost optimization.
