Posted  9 Aug, 2017 
In: Articles

The business model canvas is a one-page plan that helps you easily visualize your overall operation. It’s a simple starting point that helps you structure your thoughts and bring together aspects of your business to feed into your value proposition. It helps you fail fast and recover even faster by allowing you to easily pivot and readjust pieces of your business model. We have created a sample canvas for an organic fruit and vegetable farm to illustrate how it this method can benefit you in the planning stages of your business.

The canvas is broken into nine basic building blocks, which you fill out to describe your overall plan. To begin, customer segments are the people or organizations for which your business creates value, like young families and single professionals. Your value propositions are the bundle of products and services that create value for each customer segment. For example, young families are generally busy and looking to save time, and this business model provides the value of time by selling canned and preserved fruits and vegetables. Channels describe the touchpoints through which you interact with your customers, like newsletters or advertisements. Revenue streams make clear how and through which pricing mechanisms your business model is capturing value, like a cookbook full of recipes utilizing organic fruits and vegetables. The left side of the canvas describes the infrastructure you need to create, deliver, and capture value. Key resources are the assets which are indispensable to your business model, and are required for your success, like a farm and skilled labour. Key activities are the things you need in order to perform well, like a contingency plan in the case of crop failure. Since you won’t own all key resources yourself, nor will you perform all key activities, they key partners are those who can help you leverage your business model, such as farmers market associations that work to support local farmers. Finally, once you understand your business model’s infrastructure, you will have a better understanding of its cost structure and what costs will be incurred to operate, such as equipment purchasing and maintenance, and certification fees.

The canvas allows you to invent, describe, discuss, design, and challenge your business model, all in one image. To learn more about the business model canvas, visit http://www.strategyzer.com.

 


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