What is the Canvas Model and how to complete the canvas?

Within the tools to develop innovation we found a great variety. Of course, among them is the Business Model Canvas, a methodology without which we cannot talk about strategic innovation.

Today we are going to define What is the Canvas Model, what are its components and what benefits it offers. In addition, we will help you complete the canvas with the download a free template.

What is the Canvas Model?

El Business Model Canvas or Canvas Model is an analytical tool that reflects the strengths and weaknesses of a company at a glance (a single sheet). In this way, we obtain an overview of our business model quickly and easily.

The idea was developed by Alexander Osterwalder in 2011 as a methodology for adding value to business ideas, and it is one of the most used tools in methodology Lean Startup.

The Canvas Model can be applied both in established organizations and in those that are about to be born, whether they are small, medium or large companies.

In short, it's the best way to detect which areas are important to a company and what each one should consider to earn revenue.

Composition of the Canvas Model

There are 4 essential areas for any business model: supply, structure, customers and economic viability of the business. And the Canvas Model divides these into 9 blocks to be completed:

1. Customer segments

Considering that customers are the foundation of a business, you must identify those groups of people to whom you will offer your product or service and analyze them in depth.

You can Define different buyer personas that help you visualize what those who are going to buy from you are going to look like. Within this analysis, you have to consider different factors, for example, sociodemographic factors, their behaviors, motivations or interests.

2. The value proposition

What sets you apart from the competition? What benefits do you offer? Debes define your value proposition and direct it to the customers defined above.

Remember, it must be the value proposition that adapts to those customers, and not make the mistake of thinking that they will be the ones who will adapt to your products.

3. The channel

How are you going to get that value proposition (the products or services you offer) to your customers? Debes define the different distribution lines. It's no use having an interesting value proposition if you don't manage to get it to the target audience.

To define channels, it is important to keep in mind the your customer conversion funnel, because it will help you detect opportunities to offer your products.

4. The relationship with the customer

Where are your Touchpoints? You must determine at what point your relationship with the customer begins and what are the different ones Touchpoints What will you have with him until that relationship ends.

Remember not to focus only on personal relationships, customers can have contact with your brand at different times and in different ways.

5. The flows or sources of income

How much are your customers willing to pay for your product or service? The company must be profitable, but it must always be in line with what the customer demands.

Defining your sources of income first and then your customers is a mistake. First you need to locate those people that interest you, and then analyze the different ways you have to obtain benefits.

6. The key activities

To deliver our value proposition to customers, we must carry out different actions such as production, marketing, communication...

This section covers everything you need to carry out the value proposition, detailing the necessary activities to launch it on the market.

7. The key resources

For your business model to work you need a series of physical and material resources. What resources do you have to offer the value proposition?

These encompass people, facilities, machines, financing... And they can be, for example, patents or copyrights, in addition to human and financial resources.

In other words, in this section you must detail everything you need to develop your proposal and relationship with the customer.

8. Key alliances or partners

What are the strategic alliances that will help you develop your business model? Los partners, suppliers or investors, among others, must be present in this section.

Las strategic alliances are essential for a project to be viable and to have growth potential, since this is something that is very difficult to achieve without company and support. Therefore, it is necessary to define What actors are going to be key to bringing the value proposition to the market.

9. The cost structure

Every company has costs, do you know what yours are? These can range from manufacturing or production to employee payroll payment.

So, at this point, indeed, we have to define the most important costs of your activities and key resources. It is important to keep in mind options such as lowering the price of the product or service, automating production or working on creating value for the consumer when it is necessary to adjust costs.

Benefits of the Canvas Model

The Canvas Model has proved to be very useful for all types of companies, and is used worldwide because of the large number of benefits it presents.

• practical: As you progress, you can make the necessary modifications.
• Simple: it is organized in 9 blocks that cover all the aspects to be considered.
• simple: the way to handle it is very intuitive and you can do it both on a sheet and on a blackboard or using post-it notes.
• Changes and consequences: this model allows us to detect possible consequences of modifying some of the aspects of the business.
• Teamwork: it is a model in which several project members can participate simultaneously.
• Valid: can be applied to all types of business.
• Visual: allows us to get a global perspective of the business at a glance.

How to complete the Business Model Canvas?

There are really many ways to work with this tool, although the first step is to get your canvas. In Santalucía Impulsa We have prepared a free downloadable template with which you can start working and express your business model in it.

Once you have your template, you must decide if you are going to work it physically or through your computer. And, whatever option you choose, we recommend filling it out in the order specified in the breakdown of sections (customer segments, value proposition, channel, customer relationship, revenue sources, key activities, key resources, key partners, cost structure).

• If you choose to print it, the DIN-A3 size It is usually the most common, and the ideal is to use Post-it to fill in the boxes. So, if you need to make any changes, all you have to do is move a piece of paper. Use different colors will help you make your canvas much more visual and attractive. However, try to stay on the most superficial layer and not go into too much detail, remember that what is sought with the Canvas Model is to have a Quick picture of the business model. In addition, another recommendation is Work the template as a team, since this way you can obtain different points of view and the canvas will be more complete.
• If writing, pasting and moving slips of paper isn't your thing, another option is use collaborative platforms such as Miro. These allow you to have your business model in the cloud, edit it whenever you want and even share it with your group to work on the template simultaneously. Basically, it's the same thing you would do with a paper (including creating post-it notes), but digitally and without the need for all the members of the team to be together physically.

Now that you have all the information you need to implement the Business Model Canvas, download your Canvas canvas and start planning your business model!