Business Model Canvas: Understanding & How to Make It

Running a business is not an easy thing. However, with the business model canvas, business planning and management becomes more organized and neat. Therefore, the use of this method is very useful in business development.

The business model canvas is a tool for translating the management activities of a business in a visual form. In its application, business planning can be seen from several parts in the structure presented on a model canvas. 

So, what exactly do you need to know about the business model canvas? How to make? Come on, see more information in this article!

What is a Business Model Canvas?

The business model canvas is the design of a strategy in the business field. In general, business planning and development is the goal of the design. 

The management framework will be able to help business owners to realize a business idea. 

With the concept of a design and visuals in the description of business management, conveying ideas becomes easier and more concise. 

The images created will be divided based on the needs of a business. Usually the main things in business design such as finance, infrastructure, and consumers are the focus of a model canvas. 

Compared to a business plan, the business model canvas is more effective in conveying business ideas and plans.

With the help of visuals, information will be more easily conveyed and can be realized quickly. In addition, business owners can monitor which parts need to be improved or improved their performance. 

Important Elements of a Business Model Canvas

Basically, designing a business model canvas is done by connecting the important elements in a business.

The canvas model is created with a flow that connects one element to another in a concise manner on a single page.

There are nine important elements in creating a business model canvas. These elements are:

1. Customer Segment

The first element in the business model canvas is the customer segment. In this segment, you need to determine the customers of the product to be issued. 

The things that need to be considered in this segment include the age, hobbies, and gender of the target consumers themselves.

2. Value Propositions 

Next, it's time to determine the value of a product. Value propositions are important things to determine at the beginning of planning so that you know the needs of consumers and what goods or services are needed.

The value of your business product must have a unique character so that it can look different and can compete with other business competitors.

3. Channels

The next element is the channel. The means in marketing products and the place where transactions take place with consumers are very important in the design of a business. 

For that, you can use a website or marketplace to sell products. In addition, social media can also be used in marketing these products. 

4. Customer Relationship 

After determining the target consumer, product value, and sales channel, then as a business owner you must determine how to communicate with customers.

Online platforms such as social media can be the right tool to establish communication and accommodate complaints from customers of your product. 

5. Revenue Streams 

One important element in the business model canvas is revenue streams or sources of business income from sales, dividends, and so on. 

Product sales must be done following the existing trends so that your business still gets a constant income. 

6. Key Activities 

In a business activities, every step is important in achieving the value proposition. Therefore, it is important to manage sales and marketing facilities so that the business can continue to run effectively and efficiently. 

7. Key Resources 

In order for business activities to run, you need key resources, which are resources that function to carry out the main activities of a business.

The availability of products, the need for production equipment, human resources, and finance are important in the process of monitoring key resources.

8. Key Partners 

In doing business, you will need partners to work together in selling and marketing products. 

Therefore, collaborating with distribution partners and goods storage is very helpful for the continuity of a business and achieving maximum and efficient profits.

9. Cost Structure 

Cost structure is a calculation of operational elements in a business which includes key activities, key resources, key partners, and channels. 

The final value of the cost structure may change depending on the business activity. Therefore, you have to be more careful in calculating it. 

How to Create a Business Model Canvas 

Now that you know what a business model canvas is and its elements, it's time to find out how you can create one. As for how to create a business canvas are:

1. Competitor Analysis

The main thing in how to create a business model canvas is to study competitors. As a business owner, analyzing information from competitors can give you more knowledge about your business area. 

2. Sort Elements by Priority 

Make sure the elements of your business plan match your business priorities. Every element is important in running a business, but it will be seen which ones need to be prioritized after the business takes place. 

3. Connect Each Element 

Make sure each element supports the other elements so that the business strategy is realized. If one element goes well, then the other elements will be able to take place effectively in the process. 

4. Focus on the Current Situation 

Recognize trends and focus on current market conditions. A business strategy will work better if you know what consumers are currently enjoying and how competitors in the business react to it. 

5. Review

A review needs to be done after the business plan is completed. This is done so that all elements can work and support each other with certainty. 

If deficiencies are found in the canvas model, then you review which parts should be modified.

Sample Business Model Canvas 

After knowing what a business model canvas is, you need to know how to apply it. Determining the priority of elements is needed so that the business can run effectively and efficiently. 

Therefore, you must know what kind of business idea you will run before making a business plan. 

One example of a canvas business model that is relevant today is online clothing sales. Define the customer first. 
Then, determine the value propositions so that your business has its own uniqueness and can compete with competitors. 

Another example of a canvas business model is content writing services. Determining the channel is important for the running of this business. 

The use of websites and other social media is necessary to market and offer these services. In addition to channels, key partners must also be considered in this line of business. 

Well, that's the information about the business model canvas and how to make it. As a business owner, of course you need reliable management that makes it easy for business activities to run every time.