Business Model Canvas tool helps entrepreneurs plan
Today’s post author is Victor Oyervides, retail business specialist with FFED. He shares information about one of the tools that our Enterprise Development team uses to support Iowa’s entrepreneurs with business startups: the Business Model Canvas. This article is the first in a series.
The Business Model Canvas is a strategic management tool created by entrepreneurs for entrepreneurs. It is a simplified, visual open-source tool, which is user-friendly, hands-on and a step-by-step guide.
The virtual “canvas” contains nine rectangles. Each represents a building block of all small business and non-profits. The nine building blocks are:
- Customer Segments
- Value Propositions
- Customer Relationships
- Revenue Streams
- Key Resources
- Key Activities
- Key Partners
- Cost Structure
How it works
On the Business Model Canvas, an entrepreneur will organize, analyze, adjust and implement premises on a feasible business concept. The nine building blocks provide a pathway to understanding how the business concept will create value for value in return.
Entrepreneurs, small businesses, large corporations and non-profits all benefit from using this tool. Once you engage the tool, you may want to use it on all different types of business ideas or management projects.
The Business Model Canvas is usually printed out in floor-plan size or larger and pinned up on a wall. There a team can initially post all ideas corresponding to each of the nine building blocks. Afterwards, the team researches the feasibility of the business concept. It is time efficient and cost effective to test your hypothesis before launching a business, product or service. The team continues to evaluate and make adjustments to the Value Proposition according to Customer Segments feedback.
The Business Model Canvas is not the finishing stroke to launching a business idea. But it’s a great step forward on the path to developing a business plan.
Watch for more information on Enterprise Development team tools in upcoming posts. If you have a question for Victor, you can reach him at this email, or call (515) 294-7517.