Business Model Canvas Example and How To Structure It

LECTURE NOTES CREDIT HOURS : 3 CREDIT SEMESTER/SESSION : 4th SEMESTER, 2022/2023 SESSION TOPIC : BUSINESS ORGANIZATION CHAPTER 1 – Business Model Canvas Example and How To Structure It A. Definition of Business Model Canvas There are many business strategies that can help you build a business more organized. One of them is by using a business model canvas. This time, Glints will review how to structure and examples of the right business model canvas. According to Miro, a business model canvas is a strategy created by business experts Alexander Osterwalder and Yves Pigneur to illustrate the shape of a business in a concise manner. This strategy is commonly used to build new businesses to have clearer and more organized goals. However, there are also those who use it for existing businesses that need to re-evaluate the goals and future of a business. B. Business Model Canvas Example In general, there are 9 components in a business model canvas. Each component has a close relationship. Here is an example of a business model canvas and its 9 components. C. How to Build a Business Model Canvas When talking about how to build a business model canvas, we will focus on how to fill in each component in it. The following is an explanation for each component of the business model canvas and how to fill it in. 1. Key partners The leftmost part of the business model canvas example above is key partners. Key partners contain partners or suppliers outside your business that will help you deliver your value proposition to customers. This cooperation is certainly important so that the business you build can run effectively and efficiently. For example, if you open a cake bakery business, you must first look for suppliers of basic ingredients such as flour or sugar of good quality from trusted suppliers. To find out what partners your business needs, answer this question: • What external products or services does your business need to run smoothly? • Who are the key partners or suppliers of your business? • Why do you need to work with them? 2. Key activities Key activities are components that contain activities or activities that your business does on a daily basis. These activities are carried out to generate the business value proposition. To fill in this component, you can answer the question: • What activities can your business do to satisfy customers? • What activities are important to do to build relationships with customers? • What is your business's product or service distribution process? 3. Key resources Key partners are the resources required by your business to operate effectively and be able to deliver products or services well. Resources include human, financial, intellectual and physical needs. To determine the resources your business needs try answering this question: • What resources are needed to create the product or service to be sold? • What resources are needed to distribute your business products or services? 4. Value proposition In the business model canvas example above, the value proposition is in the middle because it is the most important part. Simply put, the value proposition is the selling point of your business products or services so that customers don't prefer competitors' products or services. To determine this selling point, you must first know what the customer's needs are and how your business can help solve those needs. In addition, this selling point can also be in the form of newness or new innovations so that customers are interested in buying your products or using your services. Therefore, filling in the value proposition can be helped with questions such as: • What is the problem that customers are currently feeling? • What benefits can your product or service provide to solve the customer's problem? • What are the advantages that your product or service offers so that it is different from competitors? 5. Customer relationships After determining the previous things, it's time for you to fill in the customer relationship column. This section is quite important because it explains how your business interacts with customers. Interacting or approaching customers can be done in ways such as through social media personally or via WhatsApp and email applications. To determine effective customer relationships, try answering these questions: • What relationship do you want to create with your customers? • How can you integrate that relationship with your business costs or systems? 6. Channels The next section that must be filled in according to the previous business model canvas example is channels. To distribute your value proposition, you need the right channel or simply the right media. To determine the most appropriate product or service distribution channel, try answering this question: • What channels or media do customers often use when shopping for your product or service? Is it social media, television, or email? • What is the most cost-effective and efficient channel to distribute your products and services? 7. Customer segments Customer segments is where you fill in who are the customers to whom you want to distribute your products or services. Before segmenting customers or customer segments, you must first know the current needs of the community. After that, then think of ways that your product or service can provide that need. If you already know all that, think about the target customers who are the main focus of your business. Consider some of the questions below to fill in this customer segments section. Which category of people will use your product or service? Students or workers? People in their 20s or 30s? Male or Female? Who are the main customers who will use your product or service? 8. Cost structures One of the bottom sections of the business model canvas example above is the cost structures column. According to Creately, the cost structures section is a column to write the expenses that your business needs to operate properly. Therefore, you can describe the categories of costs and investments needed by your business and the numbers. 9. Revenue streams The last component is revenue streams. This section contains the revenue streams or sources of a business. For example, you can write down revenues such as monthly sales proceeds, perhaps royalties from franchising, and other revenues. This section will be easier to fill in if you know the customer segmentation, activities, and resources your business requires. That's Glints' explanation of the business model canvas example and how to structure it. Knowing the right business tricks or strategies will make your business grow rapidly and purposefully. One of the simple tricks that can be practiced directly is by compiling a business model canvas.