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Marketing framework · Strategy

Business Model Canvas

Business Model Canvas

by Published on Updated on 7 min readBeginner

When to use it
When you are starting a business, rethinking how you make money or assessing a new service.
Origin
Alexander Osterwalder, 2005–2010

Key points

  • Nine building blocks on a single page.
  • The market on the right, the organisation on the left, the value proposition in the centre.
  • The blocks are connected: changing one affects the others.
  • It needs updating when the market changes.

How to apply it, step by step

  1. Start from the customers

    Define the customer segments and the value proposition for each one.

  2. Describe how you reach them

    Channels and type of customer relationship.

  3. Clarify how you make money

    Revenue streams: what customers pay for, how and how much.

  4. Describe the organisation

    Key resources, activities and partners.

  5. Add the costs and check

    Cost structure and consistency across all the blocks.

What it is for

The Business Model Canvas describes on a single page how a business creates, delivers and captures value. Nine connected building blocks show at a glance who it works for, what it offers, how it does it and with what costs and revenue.

The nine building blocks

  • Customer segments: who value is created for.
  • Value proposition: why customers choose the business.
  • Channels: how the proposition reaches customers.
  • Customer relationships: what kind of relationship is built.
  • Revenue streams: how and how much customers pay.
  • Key resources: what is needed to operate.
  • Key activities: what has to be done well.
  • Key partners: suppliers and allies.
  • Cost structure: the main expenses.

How to read it

The right-hand side of the canvas covers the market (customers, channels, relationships, revenue), the left-hand side the organisation (resources, activities, partners, costs); in the centre is the value proposition that connects them. Changing one block affects the others: a new channel requires resources and brings costs.

An example: the electrical supplies distributor

Segments: installers and construction firms. Proposition: immediate availability, technical advice, on-site delivery. Channels: sales reps, trade counter, online client area. Relationships: dedicated sales rep. Revenue: sales of materials and delivery services. Resources: warehouse and catalogue. Activities: purchasing, logistics, sales. Partners: manufacturers and couriers. Costs: warehouse, staff, transport.

Mistakes to avoid

  • Filling in the blocks separately without checking that they are consistent.
  • Writing a generic value proposition.
  • Treating it as a one-off document: it needs updating when the market changes.

Frequently asked questions

What are the nine building blocks of the Business Model Canvas?

Customer segments, value proposition, channels, customer relationships, revenue streams, key resources, key activities, key partners and cost structure.

Who invented the Business Model Canvas?

Alexander Osterwalder, who developed it between 2005 and 2010 together with Yves Pigneur.

Which block do you start with?

Usually with customer segments and the value proposition, then channels, relationships and revenue, and finally resources, activities, partners and costs.

Terms in this framework

Full glossary →

Other frameworks

Value Proposition CanvasGolden CircleMarketing mix (4Ps / 7Ps)

← All frameworks

First step

Let’s apply it to your business

Every partnership starts with a conversation. The first two steps are free and with no obligation: they help us understand whether our method is right for your business.

  1. 1
    Fill in the requestOne minute: your name, company and how to reach you.
  2. 2
    Activate your accessAn email with a button takes you to the client area. Then the consultant sends you the discovery questionnaire: about 10 minutes, even in several sittings.
  3. 3
    Free discovery callA 45-minute video call with the consultant to see whether and how we can help you.

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Step 1 of 3 Request · then questionnaire (10 min) · then free call (45 min)

Right after sending, you receive an email with a button to activate your access to the client area. Then the consultant sends you the discovery questionnaire (about 10 minutes, even in several sittings) and you schedule the free 45-minute discovery call.

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