🌑 Business Model Canvas Hijab

Authors Annisa Farah Tadayyana Wa Mutsaqqof Universitas Islam Negeri Prof. Saifuddin Zuhri Purwokerto, Indonesia Infusvania Putri Prakasiwi Universitas Islam Negeri Prof. Saifuddin Zuhri Purwokerto, Indonesia Dhanar Intan Surya Saputra Universitas Amikom Purwokerto, Indonesia DOI Keywords Business Model Canvas, Hijab Hampers, Millennials Abstract The world of fashion for hijab is a promising business because more and more Muslim women are familiar with the hijab trend. Now more and more Muslim women are interested in wearing the hijab. There are many interesting tips and tricks on how to wear the hijab. This makes us see a great opportunity to open a hijab business. From these problems, the contribution of this community service is to get complete information about the canvas business model on hijab hampers. This community service uses qualitative analysis methods to find out how big the role of the Canvas Business Model is for startup businesses to design improvement businesses. The method used is descriptive qualitative. The result of this service is that the community, especially millennials, supports the existence of this almost hijab business because it is very helpful, especially for both formal and non-formal events. Author Biographies Annisa Farah Tadayyana Wa Mutsaqqof, Universitas Islam Negeri Prof. Saifuddin Zuhri Purwokerto, Indonesia Department of Sharia Banking, Universitas Islam Negeri Prof. Saifuddin Zuhri Purwokerto, Indonesia Infusvania Putri Prakasiwi , Universitas Islam Negeri Prof. Saifuddin Zuhri Purwokerto, Indonesia Department of Sharia Banking, Universitas Islam Negeri Prof. Saifuddin Zuhri Purwokerto, Indonesia Dhanar Intan Surya Saputra , Universitas Amikom Purwokerto, Indonesia Departement of Informatics, Faculty of Computer Science, Universitas Amikom Purwokerto, Indonesia References R. F. Schmal and T. Y. 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This is a complete guide on how to use the Business Model Canvas. I have also included some downloads for high-quality pdf versions of the Business Model Canvas, the popular canvas created by Osterwalder and Pigneur. What Is A Business Model Canvas?How To Map A Business ModelWhy Use The Business Model Canvas?DOWNLOAD FREE HIGH-QUALITY PRINTABLE PDF’sStrengths And Weaknesses Of The Business Model CanvasStrengthsWeaknessesBusiness Model Canvas SectionsSTEP BY STEP GUIDEThe Business Model Canvas BMCHow To Get Started?Different Ways Of Using The Business Model Canvas?Step 1 of 10 Customer Segments1. Customers Segments2. Segment Composition3. Problems, Needs, Behaviours & Current AlternativesOutcomeStep 2 of 10 Value PropositionsWhat is Value?OutcomeStep 3 of 10 ChannelsStep 4 of 10 Customer RelationshipsStep 5 of 10 Revenue StreamsStep 6 of 10 Key ActivitiesOutcomeStep 7 of 10 Key ResourcesOutcomeStep 8 of 10 Key PartnershipsOutcomeStep 9 of 10 Cost StructureOutcomeStep 10 of 10 Applications, Review & Next StepsCore ApplicationsCompetitivenessBusiness Model Canvas ExamplesNext StepsSUBSCRIBE NOWMore Business Model Canvas Resources A business model contains nine separate components. With the result that the nine parts together combine to create value. Business modelling now is one critical part of assessing a digital strategy. A model is easy to understand and analyze. Moreover, it provides a common framework that managers can use to develop new models. Most companies need to be more innovative. As a result, modelling is a creative way to explore new business opportunities. Today there is a larger variety of how companies can make money. Much is due to new technologies. As an example the Blockchain. How To Map A Business Model To develop a visual map of a business model you put the nine blocks together. Redesign the blocks and you create new forms of value. A mistake often made is to ignore the customer in the design. Increasingly with services taking centre stage, business modelling defines the customer experience. In comparison to other methods, the visual mapping process is a useful team process. Besides exploring new opportunities, it creates a shared understanding between team members. Why Use The Business Model Canvas? The Business Model Canvas is popular with entrepreneurs and intrapreneurs for business model innovation. Fundamentally, it delivers three things Focus It focuses on what’s important the fundamental business logic – what I mean does it all fit together. It quickly clarifies and demonstrates whether the pieces fit together to make a business worth Often I find that the original ideas get tweaked as the Business Model develops. This is particularly true when working in organizations and across different skill sets. Transparency Team can refer to it easily. It is an ongoing tool that facilitates discussion, debate and also requires further research. Further research can be around financials, segments, and partners. Often, once the business model is created there needs to be some initial validation. DOWNLOAD FREE HIGH-QUALITY PRINTABLE PDF’sClick to download free high-quality printable pdf’s of the Business Model Canvas Template 3508 px x height 2480 px 300 dpiwidth 7016 px x height 4960 px 300 dpiwidth 14043 px x height 9933 px 300 dpi Strengths And Weaknesses Of The Business Model Canvas Strengths Focus on the problem-solution the main business components and their clarity of thought for business for facilitating discussion, debate and further to understand. Weaknesses The Business Model Canvas is NOT a strategy. You still need a take into account the competitive when used is based on assumptions rather than take into account sustainability – missing the broader view of economy, society and show the different stakeholders involved in the business components that are availableIf you’re a startup then you might want to use the Lean Business Model Canvas instead. Get more business design templates and analysis of business models by signing up to the email newsletter. Business Model Canvas Sections Business Model Canvas The following elements provide an overview of the main business drivers Customer Segments Who are the customers? What do they think? See? Feel? Do?Value Propositions What’s compelling about the proposition? Why do customers buy, use?Channels How are these propositions promoted, sold and delivered? Why? Is it working?Customer Relationships How do you interact with the customer through their journey?Revenue Streams How does the business earn revenue from the value propositions?Key Activities What uniquely strategic things does the business do to deliver its proposition?Key Resources What unique strategic assets must the business have to compete?Key Partnerships What can the company not do so it can focus on its Key Activities?Cost Structure What are the business major cost drivers? How are they linked to revenue? STEP BY STEP GUIDE What’s the Business Model Canvas?How do I get started?Different ways of using the business model canvas?Step 1 of 10 Customer SegmentsStep 2 of 10 Value PropositionsStep 3 of 10 ChannelsStep 4 of 10 Customer RelationshipsStep 5 of 10 Revenue StreamsStep 6 of 10 Key ActivitiesStep 7 of 10 Key ResourcesStep 8 of 10 Key PartnershipsStep 9 of 10 Cost StructureStep 10 of 10 Applications, Review & Next Steps The Business Model Canvas BMC The Business Model Canvas BMC gives you a structured way to design a business. The goal is to create a business model that is unique and compete in the market. It is an ideal way to check the business logic of why customers will buy your product or service. It also provides a way to understand how all the different elements come together to deliver your products or services, the cost structure, value proposition, customer segments and profits. How To Get Started? Identify the overarching purpose of the business I suggest that to start with you print out several copies of the business model canvas see above for high-quality PDF print versions. Fill out the elements and start to get a feel with how the different elements sit together and whether they make sense. Keep copies of them and also mark on each the version that way you can refer back to ideas and also see how your thoughts have progressed. Different Ways Of Using The Business Model Canvas? The business model canvas can be used to not only develop your business model but also analyze potential competitors. How do you know if your business model is unique and difficult to replicate if you don’t know the market? I’m not suggesting mapping every competitor. Quite often you find many have similar, if not the same, business model, which makes it hard to differentiate them. Remember that that sometimes different cost structures can make a huge difference in a market – Aldi vs Sainsbury’s. Needless to say, that using a business model canvas on a known company can help you build out your own ideas to compete. Step 1 of 10 Customer Segments This sounds obvious, but when you get into the detail many people overly simply the customer and don’t create a clear picture of who they are. As a result, the tendency is to make generalizations. Sections of the Business Model Canvas 1. Customers Segments Understanding who you are aiming your business at is critical to success. As an example, HR directors – they are an identifiable group of people that use the label HR Directors to identify themselves and their role. You can find HR directors on Linkedin for instance as individuals and through Linkedin Groups. 2. Segment Composition A Segment is the maco level of a potential customer base. Understanding the composition of the customers – how they vary, how many are there in different sub-segments helps you to determine the market potential and viability. The traditional way of looking and understanding these sub-segments is to use Marketing Personas. This is where you should be able to visualize the people that are actually going to buy your product and how. It is the detail and depth of understanding here that counts. We are talking here about observations not just theory or statistics cleaned from a marketing report. You need to understand what they think, see, feel, and do in your product area. Be sure to list both buyers and users of your product many Personas will be both. 3. Problems, Needs, Behaviours & Current Alternatives Many customers have hidden needs. In other words when you watch and observe them trying to do things they have to do workarounds or take a long route to accomplish their task. Understanding what customers are trying to achieve and observing how they achieve things provides valuable insights into why and how you can help them Make sure that you identify their existing needs/problems and identify the alternatives that they currently use. If you’re not sure, go out and observe, talk to some people. You’ll want to be able to clearly link your Value Propositions back to these in the next section. Outcome You should as a result of completing this section be able to clearly define your segment and have a number of personas for the different sub-segments that describe the profile of your customer, their behaviours, their problems, and current workarounds or alternatives Step 2 of 10 Value Propositions The Business Model Canvas – Connecting Value Propositions to Customer Segments The Problems or Needs that you identified earlier and used to build your Marketing Personas now come into play. The Value Proposition Canvas describes the details of how the value proposition and customer segments interact. In its simplest terms, a value proposition is a positioning statement that explains what benefits you provide for who and how you do it uniquely well. It describes your target customer, the pain point you solve, and why you’re distinctly better than the alternatives. What is Value? It means seem a bit odd asking this but there are many different dimensions to value? Equally, there are often hidden barriers people do not see the value the same as you What is important at this stage to challenge yourself your Value Propositions and why does your customer might prefer them to their Current Alternatives? Quite often you will have multiple value propositions. They are not the same benefits. Remember that value propositions are the sum of benefits you offer. A value proposition clearly aims at defining how it solves a problem and presents a new way of doing it compared to existing solutions. Use a whiteboard or index cars for each value proposition. What things can you do that actually will make the biggest difference to the customer and be unique and better than the competition? Outcome You should now have a clear link between value propositions and your personas. The value propositions should clearly tie in with the customer and why they will buy. Step 3 of 10 Channels Business Model Canvas Channels – Linking channels to your customer segments Channels include the methods that you are going to use to reach your customers. Are there clear customer communities, what labels or job titles refer to your customers, what interests groups do they have that can help you identify them? Being able to reach your customers through marketing channels is crucial to being able to make them aware of your product and test your value propositions. Some typical channels are paid search Google Adwords, social media ads Facebook ads, Instagram ads, SEO long term, PR… OutcomeFor each Persona or Segments, if they differ substantially. Make a clear note of potential channels that can be used to reach to the customer. In the marketing growth blueprint, I cover in more detail how to design and develop a clear marketing strategy for your business model. Step 4 of 10 Customer Relationships How to use the business model canvas and link customer segments to customer relationships Some questions to help guide you on this block of the business model canvas How do you develop a customer relationship?How will the customer interact with you through the sales and product lifecycle?What is the customer journey?What are the most critical elements of the customer journey?How much do you use automation and what do you make personal?Do you use outbound reach and calls? The value proposition should link closely to the level of service and touchpoints you use to interact with customers? The costs associated with how you deliver your communications, service the customer will be reflected in costs. Use storyboard and customer journey maps to map the current customer journey. Then map how your value proposition will be delivered and make a note of the critical points in the journey and the overall lifecycle. OutcomeA description of the type of customer relationship for each segment/persona. Step 5 of 10 Revenue Streams The most important thing is to map the number of each segment and potential revenue. Don’t overestimate this. Remember you have to often out early adopters vs. the mainstream of regular buyers who are often harder to convert. Try and be realistic – use a spreadsheet and calculate your variables. The Business Model Canvas – Revenue Streams OutcomeA list of Revenue Streams, linked mutually to Personas or Segments if the mappings are the same within a set of Personas and Value Propositions. Step 6 of 10 Key Activities The Business Model Canvas Activities and Resources These are the essential things the business needs to do to deliver on its propositions and make the rest of the business work. For a product-driven business, this will involve learning about users and new techniques to build and test new products. Rarely does the first design go straight through to production? In particular, with products, you need to consider how much time is involved between new design sand prototypes to test. There are lots of new ways to get prototypes developed fast and therefore speed up the innovation process. If you’re focused on doing a set of services for customers, then include maintaining superior expertise on the segments and creating or acquiring products and services that are a good fit, whatever that entails. Outcome A list of Key Activities linked to your business Value Propositions. Step 7 of 10 Key Resources How to use the business model canvas key resources section Key resources are the strategic assets you need in place, and you need in place to a greater or more targeted degree than your competitors. The Business Model Canvas proposes that there are three core business types product, scope, and infrastructure. These tend to have similar types of Key Resources. Outcome A list of Key Resources linked to your business’s Key Activities. Step 8 of 10 Key Partnerships Business Model Canvas – The Key Partnerships block At this point, hopefully, the Canvas has helped you sharpen and articulate your business’s focal points. What Activities and Resources are important but not aligned with what’s a unique strategy for you? What’s outside of your business type? Could partners do some of those? Why? Which? I recommend mapping Key Partners to Key Activities. If an activity is key, it’s still part of your business model. This is a way to denote which specific Partners are handling various Key Activities for you. Outcome The left of the business model has blocks that logically support and fit together. Understanding costs associated with yoru activities is a key part of your business modelling. A list of Key Partnerships with notes on their relationship to Key Activities. Step 9 of 10 Cost Structure The Business Model Canvas – linking activities to costs You’ve worked to understand how your Key Activities drive your propositions and hence your revenue. The key questions to ask at this stage of the business model canvas are How do they drive costs?Are those costs well aligned with the key Value Propositions?Are the costs more fixed or variable as you test different business models?Are they more linear with your scaling or more fixed? You’ll want to have these in mind as you tweak your model. Outcome If you’re a startup then knowing your costs and predicting a run rate for costs is critical. The business model canvas helps to focus on the resources and activities that are associated with your business design. As an outcome, you should have a list of Cost Structure elements with notes on their relationship to Key Activities. Step 10 of 10 Applications, Review & Next Steps Core Applications The most core and obvious applications of the Canvas are to ask– Does it make sense?– Could it be better?– Does the rest of my team understand and agree? Have additional ideas?– Rinse and repeat at least quarterly Competitiveness The business model canvas does a good job of helping you figure out your business, which is a good place to start. You also want to look at the competitive environment and think about whether you how you have and can maintain a long term competitive advantage. Business Model Canvas Examples Spotify Business Model Canvas Example Uber Business Model Canvas Next Steps Every business is a work in progress. As you go through the canvas, you may encounter areas that give you trouble. Reach out if you need any help with the business model canvas. SUBSCRIBE NOWGet more resources, business model examples and tips! More Business Model Canvas Resources Customer Journey Map CanvasValue Proposition CanvasBuyer Persona CanvasCustomer Persona Canvas

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Got a new business idea, but don’t know how to put it to work? Want to improve your existing business model? Overwhelmed by writing your business plan? There is a one-page technique that can provide you the solution you are looking for, and that’s the business model canvas. In this guide, you’ll have the Business Model Canvas explained, along with steps on how to create one. All business model canvas examples in the post can be edited online. What is a Business Model Canvas A business model is simply a plan describing how a business intends to make money. It explains who your customer base is and how you deliver value to them and the related details of financing. And the business model canvas lets you define these different components on a single page. The Business Model Canvas is a strategic management tool that lets you visualize and assess your business idea or concept. It’s a one-page document containing nine boxes that represent different fundamental elements of a business. The business model canvas beats the traditional business plan that spans across several pages, by offering a much easier way to understand the different core elements of a business. The right side of the canvas focuses on the customer or the market external factors that are not under your control while the left side of the canvas focuses on the business internal factors that are mostly under your control. In the middle, you get the value propositions that represent the exchange of value between your business and your customers. The business model canvas was originally developed by Alex Osterwalder and Yves Pigneur and introduced in their book Business Model Generation’ as a visual framework for planning, developing and testing the business models of an organization. Business Model Canvas Explained Click on the template to edit it online What Are the Benefits of Using a Business Model Canvas Why do you need a business model canvas? The answer is simple. The business model canvas offers several benefits for businesses and entrepreneurs. It is a valuable tool and provides a visual and structured approach to designing, analyzing, optimizing, and communicating your business model. The business model canvas provides a comprehensive overview of a business model’s essential aspects. The BMC provides a quick outline of the business model and is devoid of unnecessary details compared to the traditional business plan. The comprehensive overview also ensures that the team considers all required components of their business model and can identify gaps or areas for improvement. The BMC allows the team to have a holistic and shared understanding of the business model while enabling them to align and collaborate effectively. The visual nature of the business model canvas makes it easier to refer to and understand by anyone. The business model canvas combines all vital business model elements in a single, easy-to-understand canvas. The BMC can be considered a strategic analysis tool as it enables you to examine a business model’s strengths, weaknesses, opportunities, and challenges. It’s easier to edit and can be easily shared with employees and stakeholders. The BMC is a flexible and adaptable tool that can be updated and revised as the business evolves. Keep your business agile and responsive to market changes and customer needs. The business model canvas can be used by large corporations and startups with just a few employees. The business model canvas effectively facilitates discussions among team members, investors, partners, customers, and other stakeholders. It clarifies how different aspects of the business are related and ensures a shared understanding of the business model. You can use a BMC template to facilitate discussions and guide brainstorming brainstorming sessions to generate insights and ideas to refine the business model and make strategic decisions. The BMC is action-oriented, encouraging businesses to identify activities and initiatives to improve their business model to drive business growth. A business model canvas provides a structured approach for businesses to explore possibilities and experiment with new ideas. This encourages creativity and innovation, which in turn encourages team members to think outside the box. How to Make a Business Model Canvas Here’s a step-by-step guide on how to create a business canvas model. Step 1 Gather your team and the required material Bring a team or a group of people from your company together to collaborate. It is better to bring in a diverse group to cover all aspects. While you can create a business model canvas with whiteboards, sticky notes, and markers, using an online platform like Creately will ensure that your work can be accessed from anywhere, anytime. Create a workspace in Creately and provide editing/reviewing permission to start. Step 2 Set the context Clearly define the purpose and the scope of what you want to map out and visualize in the business model canvas. Narrow down the business or idea you want to analyze with the team and its context. Step 3 Draw the canvas Divide the workspace into nine equal sections to represent the nine building blocks of the business model canvas. Step 4 Identify the key building blocks Label each section as customer segment, value proposition, channels, customer relationships, revenue streams, key resources, key activities, and cost structure. Step 5 Fill in the canvas Work with your team to fill in each section of the canvas with relevant information. You can use data, keywords, diagrams, and more to represent ideas and concepts. Step 6 Analyze and iterate Once your team has filled in the business model canvas, analyze the relationships to identify strengths, weaknesses, opportunities, and challenges. Discuss improvements and make adjustments as necessary. Step 7 Finalize Finalize and use the model as a visual reference to communicate and align your business model with stakeholders. You can also use the model to make informed and strategic decisions and guide your business. Key Building Blocks of the Business Model Canvas There are nine building blocks in the business model canvas and they are Customer Segments Customer Relationships Channels Revenue Streams Key Activities Key Resources Key Partners Cost Structure Value Proposition When filling out a Business Model Canvas, you will brainstorm and conduct research on each of these elements. The data you collect can be placed in each relevant section of the canvas. So have a business model canvas ready when you start the exercise. Business Model Canvas Template Click on the template to edit it online Let’s look into what the 9 components of the BMC are in more detail. Customer Segments These are the groups of people or companies that you are trying to target and sell your product or service to. Segmenting your customers based on similarities such as geographical area, gender, age, behaviors, interests, etc. gives you the opportunity to better serve their needs, specifically by customizing the solution you are providing them. After a thorough analysis of your customer segments, you can determine who you should serve and ignore. Then create customer personas for each of the selected customer segments. Customer Persona Template for Business Model Canvas Explained Click on the template to edit it online There are different customer segments a business model can target and they are; Mass market A business model that focuses on mass markets doesn’t group its customers into segments. Instead, it focuses on the general population or a large group of people with similar needs. For example, a product like a phone. Niche market Here the focus is centered on a specific group of people with unique needs and traits. Here the value propositions, distribution channels, and customer relationships should be customized to meet their specific requirements. An example would be buyers of sports shoes. Segmented Based on slightly different needs, there could be different groups within the main customer segment. Accordingly, you can create different value propositions, distribution channels, etc. to meet the different needs of these segments. Diversified A diversified market segment includes customers with very different needs. Multi-sided markets this includes interdependent customer segments. For example, a credit card company caters to both their credit card holders as well as merchants who accept those cards. Use STP Model templates for segmenting your market and developing ideal marketing campaigns Visualize, assess, and update your business model. Collaborate on brainstorming with your team on your next business model innovation. Create a Business ModelCustomer Relationships In this section, you need to establish the type of relationship you will have with each of your customer segments or how you will interact with them throughout their journey with your company. There are several types of customer relationships Personal assistance you interact with the customer in person or by email, through phone call or other means. Dedicated personal assistance you assign a dedicated customer representative to an individual customer. Self-service here you maintain no relationship with the customer, but provides what the customer needs to help themselves. Automated services this includes automated processes or machinery that helps customers perform services themselves. Communities these include online communities where customers can help each other solve their own problems with regard to the product or service. Co-creation here the company allows the customer to get involved in the designing or development of the product. For example, YouTube has given its users the opportunity to create content for its audience. You can understand the kind of relationship your customer has with your company through a customer journey map. It will help you identify the different stages your customers go through when interacting with your company. And it will help you make sense of how to acquire, retain and grow your customers. Customer Journey Map Click on the template to edit it online Channels This block is to describe how your company will communicate with and reach out to your customers. Channels are the touchpoints that let your customers connect with your company. Channels play a role in raising awareness of your product or service among customers and delivering your value propositions to them. Channels can also be used to allow customers the avenue to buy products or services and offer post-purchase support. There are two types of channels Owned channels company website, social media sites, in-house sales, etc. Partner channels partner-owned websites, wholesale distribution, retail, etc. Revenue Streams Revenues streams are the sources from which a company generates money by selling their product or service to the customers. And in this block, you should describe how you will earn revenue from your value propositions. A revenue stream can belong to one of the following revenue models, Transaction-based revenue made from customers who make a one-time payment Recurring revenue made from ongoing payments for continuing services or post-sale services There are several ways you can generate revenue from Asset sales by selling the rights of ownership for a product to a buyer Usage fee by charging the customer for the use of its product or service Subscription fee by charging the customer for using its product regularly and consistently Lending/ leasing/ renting the customer pays to get exclusive rights to use an asset for a fixed period of time Licensing customer pays to get permission to use the company’s intellectual property Brokerage fees revenue generated by acting as an intermediary between two or more parties Advertising by charging the customer to advertise a product, service or brand using company platforms Key Activities What are the activities/ tasks that need to be completed to fulfill your business purpose? In this section, you should list down all the key activities you need to do to make your business model work. These key activities should focus on fulfilling its value proposition, reaching customer segments and maintaining customer relationships, and generating revenue. There are 3 categories of key activities; Production designing, manufacturing and delivering a product in significant quantities and/ or of superior quality. Problem-solving finding new solutions to individual problems faced by customers. Platform/ network Creating and maintaining platforms. For example, Microsoft provides a reliable operating system to support third-party software products. Key Resources This is where you list down which key resources or the main inputs you need to carry out your key activities in order to create your value proposition. There are several types of key resources and they are Human employees Financial cash, lines of credit, etc. Intellectual brand, patents, IP, copyright Physical equipment, inventory, buildings Key Partners Key partners are the external companies or suppliers that will help you carry out your key activities. These partnerships are forged in oder to reduce risks and acquire resources. Types of partnerships are Strategic alliance partnership between non-competitors Coopetition strategic partnership between partners Joint ventures partners developing a new business Buyer-supplier relationships ensure reliable supplies Cost Structure In this block, you identify all the costs associated with operating your business model. You’ll need to focus on evaluating the cost of creating and delivering your value propositions, creating revenue streams, and maintaining customer relationships. And this will be easier to do so once you have defined your key resources, activities, and partners. Businesses can either be cost-driven focuses on minimizing costs whenever possible and value-driven focuses on providing maximum value to the customer. Value Propositions This is the building block that is at the heart of the business model canvas. And it represents your unique solution product or service for a problem faced by a customer segment, or that creates value for the customer segment. A value proposition should be unique or should be different from that of your competitors. If you are offering a new product, it should be innovative and disruptive. And if you are offering a product that already exists in the market, it should stand out with new features and attributes. Value propositions can be either quantitative price and speed of service or qualitative customer experience or design. Value Proposition Canvas Click on the template to edit it online What to Avoid When Creating a Business Model Canvas One thing to remember when creating a business model canvas is that it is a concise and focused document. It is designed to capture key elements of a business model and, as such, should not include detailed information. Some of the items to avoid include, Detailed financial projections such as revenue forecasts, cost breakdowns, and financial ratios. Revenue streams and cost structure should be represented at a high level, providing an overview rather than detailed projections. Detailed operational processes such as standard operating procedures of a business. The BMC focuses on the strategic and conceptual aspects. Comprehensive marketing or sales strategies. The business model canvas does not provide space for comprehensive marketing or sales strategies. These should be included in marketing or sales plans, which allow you to expand into more details. Legal or regulatory details such as intellectual property, licensing agreements, or compliance requirements. As these require more detailed and specialized attention, they are better suited to be addressed in separate legal or regulatory documents. Long-term strategic goals or vision statements. While the canvas helps to align the business model with the overall strategy, it should focus on the immediate and tangible aspects. Irrelevant or unnecessary information that does not directly relate to the business model. Including extra or unnecessary information can clutter the BMC and make it less effective in communicating the core elements. What Are Your Thoughts on the Business Model Canvas? Once you have completed your business model canvas, you can share it with your organization and stakeholders and get their feedback as well. The business model canvas is a living document, therefore after completing it you need to revisit and ensure that it is relevant, updated and accurate. What best practices do you follow when creating a business model canvas? Do share your tips with us in the comments section below. FAQs About the Business Model Canvas How do I determine my value proposition? Your value proposition is a crucial driver in the business model canvas. It defines why a customer would choose you over your competitors. A value proposition is critical in driving customer acquisition and retention. To determine your value proposition, understand the unique value that your business offers to customers–it could solve a problem, fulfill specific requirements, or provide a superior product or service. How can I build and maintain customer relationships? Building and maintaining customer relationships involves understanding and meeting the needs and expectations of your customers. Some relationship-building strategies include personal assistance, self-service, automated online support, Regular communications, loyalty programs, and feedback mechanisms. What should I consider when establishing partnerships in the business model canvas? When establishing partnerships, you should consider strategic alliances or collaborations that enhance your value proposition, expand your customer base, or provide access to key markets. It would help if you also looked into the alignment of goals, mutual benefits, roles and responsibilities, legal and financial aspects, and potential risks. How can the business model canvas help to analyze and optimize my business model? The BMC allows you to assess the coherence and effectiveness of your business model by identifying strengths, weaknesses, opportunities, and potential threats. You can review each component of the BMC to identify areas for improvement, innovation, or cost optimization. Can I use the business model canvas for different types of businesses? Yes, of course! It’s a flexible tool that can be used by different types of businesses, including startups, established companies, or even nonprofit organizations. Be it a product-oriented, service-oriented, platform-based, subscription-based, or hybrid model, the BMC can be used to describe, analyze and optimize any business model. How often should the business canvas model be updated or revised? The frequency of updating or revising depends on the nature of your business and the changes in your external or internal environment. Reviewing and updating your Business Model Canvas periodically or when significant changes occur is recommended. Regular reviews can help ensure that your business model remains relevant, adaptable, and aligned with your objectives. How can I effectively communicate my business model to stakeholders using the business canvas model? Use clear and concise language Use visual-aids Customize for your audience Highlight key insights Be open to feedback and discussion

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