The man behind Business Model Canvas was initially proposed by Alexander Osterwalder based on his business model ontology. Which has nine business modelling blocks. A business wants to be more great business, Jeff Bezos wants to earn more and more. A student wants to become a businessman.
Business model canvas is used by well-established business to expand or scale where lean canvas model is used by startups to launch their products. No matters either it is for billion-dollar business of 100 dollar startup, the thousand miles of journey starts with the first step where travelling from lean canvas to business model canvas will result the brighter sunshine.
Starting business seems easy, register your business, make social media presence, work day and night, no proper plans no goals. The report says that 80% of business fails in first 2 years. Rest struggles, survives and becomes global brand. A famous mathematician says that “The business needs to execute 1000 days, which makes 1000 people to know the business which will be flourished in those 1000 days.”
Business history shows that there was barter system in business where someone use to exchange rice with salt. Remembering before 50 years there was no amazon, no UBER, no Apple and no Samsung. Everything was going on in simple way where business use to survive only. There was nothing called expansion in major people. The generation of technology reached in such boom that you can order anything from US by sitting any corner of the world.
Assuming bit earlier; there would be a man who thought people are ready to get delivery in any cost. A person may be dreaming Italian Ferrari being in China, a women thinking about American Rice Cooker from a far village in India. The company planned to deliver anywhere. The Amazon started their business by selling books online which now made Jeff Bezos world’s greatest ecommerce gateway. The delivery system served to amazon and technology company serving them both by providing software, security, parcel tracking mobile application.
It is not only Amazon has succeeded, the race has many great minds behind the great mind. Google & FlipKart duo are always ahead, UBER beating marketing, virgin ideas are rocking virgin minds. The first runner is far behind the fast runner.
There are 4 major things in professional life, that’s job, freelance, business & startup. Like everyone needs the best resume to get the best job; for every business & startup Business Model Canvas is necessary which functions like spinal cord of body.
All companies from UBER to Google has their own business model canvas where they have 9 major system of business who now are leading the world.
Business model canvas has 9 elements which equally has their role.
- Key Partners – The team of channels and people who are the customers they could be suppliers, investors, advisors etc and their performance.
- Key Activities – The activity which solves or improve the process and that engages in creating values. This can be distribution network. This minimizes the costing for customers and business.
- Key Resources – The resources needed to acquire in delivering value which can be raw materials, intellectual, workforce or in financial term.
- Cost Structure – Operating expenses which is fixed cost and the cost of goods sold, service deliver is variable cost. The cost that is paid for rent & utilities. This cost goes up when the business is increased as labor hours, materials, security, system etc.
- Value Proposition – Creating & adding value to compete in competitive market. The things which makes products unique or better than any other releases in market.
- Customer Relationships – Relationship managed with each customer. The segment which can build better relationship by self-serving at restaurant, self service restaurants, personal assistance etc.
- Channels – Think of the most efficient and effective ways to reach your customers. The effective and most efficient way to reach your customers. This can be website, mobile application, 24X7 call center, paper advertisement etc. The bridge to gap between customers and products.
- Customer Segments – The area, a group or a group of people who are interested or those people who knows the value of the product. Facebook has great customers segment rather than a local restaurant.
- Revenue Streams – The last but not least, which manages the graph of the business. The ways how business/ startup/ product can generate income. This can be subscription fee, consultancy charges, licensing, usage fee, royalty, how business can grow or sustain.
At the starting Business Model Canvas makes feel like strange so the major thing is to understand it in very easy way. Business Model Canvas is rocket science for business. It doesn’t give financial projection, report, breakeven point but makes to meet all the goals and target. Starting from who can be a customer to how the business/ startup will function which has been crystalize to better understand how to start business or how to rescale business.
The things are necessary to know major things by every entrepreneur, businessman and anyone who wants to leave the job and start anything in their own who thinks that freedom is everything in life which can give to work in free environment and make changes in lives & community.
There is no shortcut for success and there is only one way to reach the goal. There are many confusing ways which leads to obstacle to reach the desired place. 99 Roads can leads to blockade but the remain one is everything being only one thing.
All about revenue streams :
Business model Canvas’s 9th number or almost mentioned as goal mentions the financial profitability part. When someone starts business, there is a mistake of thinking that there is no doubt of being failure. All the way like roadmap “Business Model Canvas” plans everything from beginning to scaling business. A business needs to make a turn in the right way to drive their business in expressway. Amazon, Google, UBER, Hyperloop, Tesla are moving in expressway.
Not only technology, internet, social media also has turned them big but the things are doing the right thing in right time with right business modelling, planning and implementing to execute the best. The cream products of technologies are connectivity. Like a flight from Delhi to New York makes connectivity. UBER connects drivers with riders, Google connects with an information searcher by showing the results searching billion of pages from their database (big data).
Note : Featured Image is “The Business Model Canvas” of Sriyog.Com