Canvas business model better than the business plan. Save your time

Man business model

Canvas business model better than the business plan. Save your time

In this text you will learn:
  1. What is the business model canvas,
  2. how to create it,
  3. what to pay her special attention
  4. what mistakes should be avoided.

Three quarters of an hour enough time and not a minute longer need to devote to the preparation of the basic plan of action for your business. His assumption, and so will in fact quickly verified through life. Canvas business model although the same term seems complicated, in practice it turns out that this very entrepreneur-friendly tool that allows you to determine the most important elements of the operation of the new company. Canvas can successfully replace business plan on which you spend a lot of time, and it proves to be useless.

What is a "business model canvas"?

This is nothing like a simple, yet structured action plan for your business. You need him to identify a few basic elements. Usually they indicate their nine. Namely:

  1. Basic activity define what it is to deal with your company.
  2. Basic resources specify to what you have at the beginning of its activity. This includes all infrastructure, equipment, people, cash savings,
  3. offer think about what exactly you offer customers,
  4. sources of revenue show, what you earn,
  5. costs think about what you will have to pay, leading his own company,
  6. customers point who will buy your products or use your services.
  7. distribution channels Specify how you intend to sell your products or services,
  8. channels of communication show how you intend to provide information to customers and getting feedback from them,
  9. business partners in conjunction with the preceding point should define who you will be led cooperation. It is eg. For suppliers.

We begin to write a business model canvas One, a large card, to a dozen post-it notes, a pen with these tools you can start to prepare the canvas. On a sheet, list all nine issues and in every place, leave to supplement or stick sticky notes. It is worth remembering that all the points mentioned above are interrelated. Therefore, writing the canvas should begin by defining groups, or groups of customers. It is for them in the canvas you need to pay special attention, because it's their acquisition and retention depends on the success of your business. That is why the canvas should be prepared for the needs of customers. In other words, what if you have a great product, since no one will be interested in it. The term clients and offers allow you to specify other points and the relationship between them. It is easier to specify how many will be willing to pay for your product or service, how to reach them and how you will build a relationship with them. And with all this information you Assess how much it will cost.

What mistakes to avoid developing a business model canvas?

In this way, on one sheet you can accommodate all of your business idea. The main advantage of the canvas is so its simplicity and flexibility. In the future you will be easier to append and appends or delete little sticky than remodel a great business plan with its specific assumptions that, and so quickly they expire. In addition, it is worth noting that the canvas business model focuses on the approach to the customer. This is important because one of the biggest mistakes is to build a business model so that the center of attention you put yourself and your own company. At least at the beginning, avoid build a long-term strategy. You are not yet able to determine eg. On what distribution channels will be the most important for you in five years. But you're already able to determine what goals and by what means you want to achieve in a month or quarter. This approach will be more flexible and can thus interesting opportunity not you go near the nose. Do not be afraid to modify its business model. Canvas teaches critical approach to it, so the natural consequence of this approach is that after a period of "testing" the business model you decide that some of its elements should be changed and, for example. Gently change its offer, because only a portion of products to attract the interest of customers.