Business Model Canvas (BMC)
The Business Model Canvas was created by Swiss economists Alex Osterwalder and Yves Pigneur and is perhaps the most widely used method in the world of start-ups. The Canvas is somewhere between a concept sketched in a checkered notebook and a nearly 30-page business plan. It does not serve to replace any of the above-mentioned two, but is an intermediate step in development. It has content detail that is much more than an outlined idea, yet it is easy to review and is completed faster than a complete business plan.
The essence of the Canvas model is that the business vision of an enterprise should be presented concisely on a single page, a “canvas”. This is a template that helps you think through the most important elements of the planned activity, and it is precisely because of the concise wording and transparent structure that the errors and weaknesses of the design become easily noticeable. If the business and other environmental factors have changed in a relevant way to the business, the Canvas can be flexibly adapted. This is an immense advantage in an ever-changing market environment.
The areas of the Canvas model
Given that the Canvas is public under a “creative commons license,” it has been further developed by many in many ways. In the Canvas model, it is proposed to outline the business model in 9 areas, while in the case of social enterprises 11 areas are proposed. The examined areas can be divided into four major categories.
Therefore, the creation of value – key resources, key processes and key partners – appears on one side of the value proposition, while on the other side the provision of value – customer groups, channels, customer relationships – and from the third direction the financial basis of the value – cost structure, revenues.
How to get started using Canvas?
The easiest way to fill it out is to print the Canvas in a nice large size, sit around it and fill it with content by brainstorming. We can make the most of it by thinking about each element within the framework of an expert-led professional workshop. There are online versions as well, so whoever is more comfortable with filling it out electronically can do so.
Sustainable Business Model Canvas (SBMC)
The Sustainable Business Model Canvas supports the development of an idea into a viable business model. It follows a holistic approach regarding the relationships within and outside the business.
Besides economic criteria it focusses on ecological and social consequences of the activity. It aims at maximizing positive and avoiding negative impact on society and nature. Therefore, sustainability is integrated into the core business.
The visualization on the canvas fosters coherence of the concept and clarification among the team members. It further supports communication with third parties and prepares for a solid business plan.
