Business Model Canvas: A Proven Tool to Design Winning Business Models

The business model canvas remains one of the most valuable strategic tools for entrepreneurs and business owners. Originally created by Alexander Osterwalder, this simple yet powerful framework continues to guide founders in mapping out the essential parts of their businesses on a single page.

In today’s world, agility is everything. According to a McKinsey study, companies that regularly review and adapt their business models are 45 per cent more likely to report revenue growth. That is no surprise considering how customer behaviours, technology, and market dynamics shift almost overnight.

Entrepreneurs now face questions about digital platforms, AI integration, sustainability, and new monetisation strategies. The traditional business plan is no longer enough. You need a dynamic model that evolves with you.

This guide breaks down the business model canvas using practical insights, relatable examples, and actionable tools you can start using immediately. Whether you want to build from scratch, refine your current model, or get support from experienced strategists, you will find everything you need here. We will also show you how to access professional-grade templates, join our Entrepreneurs Success Blueprint Program, or even reach out directly if you want expert help developing your business model. Reach out here- WhatsApp- 08038874148.

Key Takeaways

1. The business model canvas is a practical framework that helps entrepreneurs visualise and align the essential parts of their business on one page.
2. Each of the nine building blocks, from customer segments to cost structure, works together to show how a business creates, delivers and captures value.
3. Treating the canvas as a living document allows businesses to adapt, innovate and stay relevant as market conditions evolve.
4. Entrepreneurs can use the canvas alongside tools like the lean canvas, value proposition canvas, or SWOT analysis to deepen strategy and refine business direction.

What Is the Business Model Canvas?

The business model canvas is a strategic framework that helps entrepreneurs and business leaders map out the most critical components of how a business operates, all on a single page. Instead of getting lost in the details of a traditional business plan, the canvas gives you a big-picture view that is both simple and insightful.

It lays out nine essential building blocks that show how your business delivers value to customers, operates internally, and generates income.

At its core, the business model canvas is not just a planning tool. It is a thinking tool. It helps you structure your ideas, spot weaknesses early, and make decisions based on how each part of your business connects to the other. And because it is visual, it is easier for teams to collaborate, align, and innovate together.

In recent times, this framework has never been more important. Startups need to pivot fast. Investors expect clear models of how your business will grow. And existing businesses are redesigning their strategies to keep up with new technology and consumer demands.

If you are building a business, you do not need to figure it all out on your own. Our business model canvas templates, available in our shop, offer guided support, and we also help organisations build custom models through one-on-one advisory sessions. You can always email us at Business@entrepreneurs.ng or send a message on WhatsApp at 08038874148 if you need help developing yours.

Uses of the Business Model Canvas

The business model canvas is more than a tool for startups. It has evolved into a core strategic framework used across different stages of business development, industries, and organisational types.

Here are some of the most practical and powerful ways entrepreneurs and business leaders use it today.

Clarifying a Business Idea

When starting out, it is common to have ideas flying in different directions. The business model canvas helps you ground those ideas. It forces you to answer key questions—who are your customers, what value are you offering, and how will you make money?

This clarity is vital, especially if you plan to pitch to investors or build a team. Many of our Entrepreneurs Success Blueprint Program participants use it at this stage to validate their concepts before moving forward.

Creating a Launch Strategy

Building a business model is not just about structure, it is about focus. For new businesses, the canvas guides decisions on what to prioritise.

Which customer segments to serve first, what channels to invest in, and what partnerships are essential at launch. It lays out your execution plan in a way that keeps you agile and ready to move.

Pivoting or Adapting a Business

Market shifts, economic changes, or new technology can shake up your industry overnight. Businesses that survive are often the ones that adapt fast. The business model canvas is designed for this.

You can quickly map out new assumptions, explore different revenue models, or identify cost-saving opportunities without rewriting your entire business plan. It becomes your tool for testing changes with minimal risk.

Aligning Teams and Stakeholders

Whether you are running a small startup or a growing company, misalignment among team members can slow progress. The canvas brings everyone to the same table. It shows how all parts of the business connect, helping teams understand not just what they do, but why it matters.

We have helped several organisations use the canvas during strategy sessions to realign departments and reconnect with their core mission.

Improving Operational Efficiency

When all the parts of your business are visible in one place, it is easier to spot redundancies and inefficiencies. You may find activities that do not serve your value proposition or partnerships that no longer make sense.

With the canvas, businesses can make data-informed adjustments that reduce costs and improve outcomes.

Supporting Investor Pitches and Business Plans

Investors are not just interested in big ideas. They want to know the mechanics—how the business works and grows. A clear, well-developed business model canvas tells that story. It complements a formal business plan and often serves as the starting point for due diligence. Entrepreneurs who use our paid canvas templates have found them extremely useful when preparing for fundraising conversations.

The 9 Building Blocks Of the Business Model Canvas Explained

The business model canvas is made up of nine foundational elements. Together, they offer a clear view of how a business functions, from identifying customers to how the business makes money and what it needs to operate efficiently.

Understanding each building block deeply is the key to creating a business model that is not only clear but also resilient.

1. Customer Segments

Every business must decide who it wants to serve. This block helps you define your target audiences with precision. A customer segment can be as broad as the general public or as specific as left-handed graphic designers living in Lagos.

The goal is to understand your ideal customers well enough to tailor your offerings to their specific needs, challenges and desires.

Customer segments can include:

• Niche markets (e.g. health-conscious millennials)
• Mass markets (e.g. mobile phone users)
• Diversified segments (e.g. a platform that serves both riders and drivers)
• Segmented groups within a broader market

Without this clarity, businesses tend to market to everyone and end up resonating with no one. Whether you are launching a startup or refining an existing company, this block forces you to focus.

Many of the entrepreneurs in our Entrepreneurs Success Blueprint Program begin here because it sets the tone for every other decision they make.

2. Value Propositions

Your value proposition is the reason customers choose you over another business. It is not just about what you offer, but why it matters to your audience. It could be about saving time, saving money, offering something new, or solving a problem others have ignored.

Some examples include:

• Convenience: A mobile banking app that lets users pay bills in seconds
• Performance: A laptop that works faster and lasts longer
• Design: A fashion label that mixes tradition with modern aesthetics
• Status: A luxury product that signals prestige

Each customer segment may value different things. That is why value propositions are not one-size-fits-all. When we work with clients one-on-one to develop their business models, this is often where the most breakthroughs happen—identifying the real reason customers buy.

3. Channels

Channels are the various paths through which your value proposition reaches your customers. These can be physical or digital, direct or indirect. The effectiveness of your channels affects how customers discover your brand, evaluate your offer, and ultimately make a purchase.

Common channel types include:

• Physical stores
• E-commerce websites
• Social media platforms
• Email campaigns
• Partner or distributor networks

It is also important to balance cost and impact. For example, launching an expensive mobile app might not be necessary if your target audience prefers WhatsApp or Instagram. The best businesses meet their customers where they already are.

4. Customer Relationships

This block describes how you build, grow and maintain your relationship with your customers. Are your relationships high-touch or automated? Do you offer personal consultations or self-service options? Are you building a transactional business or a loyal community?

Examples include:

• Personalised support through phone or chat
• Self-service portals for fast problem resolution
• Customer communities or referral programmes
• Regular feedback loops to improve experience

Investing in customer relationships does more than keep people happy—it drives retention, increases lifetime value and creates brand advocates. We often advise clients to pay attention here, especially if they are seeing customer churn.

5. Revenue Streams

How does your business make money? This block defines the income sources linked to your customer segments. Many businesses rely on more than one stream to maintain financial stability.

Revenue streams can come from:

• Direct sales of products or services
• Subscription models (e.g. monthly access to software or content)
• Licensing or royalties (common in creative industries)
• Usage fees (e.g. pay-as-you-go services)
• Advertising (e.g. media platforms)

Each stream may have its own pricing strategy, whether fixed, dynamic, or tiered. The key is to align how you charge with the value you deliver. Entrepreneurs using our business model canvas templates often revisit this block as they test different monetisation strategies.

6. Key Resources

This is about what you need to deliver your value proposition effectively. Key resources can be physical, financial, intellectual, or human. They vary depending on your industry, model and growth stage.

Examples of key resources include:

• Physical assets (e.g. machinery, retail space)
• Intellectual property (e.g. trademarks, code, customer databases)
• Human capital (e.g. skilled team members or advisors)
• Financial capital (e.g. access to credit or investment)

Identifying your key resources helps you understand your strengths and where you might need to invest or partner to fill gaps.

7. Key Activities

These are the essential tasks your business must perform to succeed. They directly support the delivery of your value proposition and are usually tied to operations, marketing, sales or product development.

Depending on your business, key activities may include:

• Product design or manufacturing
• Order fulfilment and logistics
• Customer onboarding and support
• Content creation or software development
• Brand management

Knowing your key activities is critical for effective delegation and resource planning. It also becomes the basis for determining where automation, outsourcing or partnerships might be useful.

8. Key Partnerships

No business operates in isolation. Key partnerships allow you to grow faster, lower your costs, access new markets, or offer something you could not on your own.

Types of partnerships include:

• Strategic alliances with complementary businesses
• Supplier agreements
• Distribution arrangements
• Technology or API integrations
• Joint ventures or affiliate partnerships

Strong partnerships can be a competitive advantage. In our work with organisations, this is often one of the most overlooked but powerful levers for growth. Partnerships should be aligned with your value proposition and customer expectations.

9. Cost Structure

Every business has costs, but not every cost contributes equally to value. This block helps you identify the major expenses tied to your key resources, activities and partnerships.

Cost types include:

• Fixed costs (e.g. salaries, rent, insurance)
• Variable costs (e.g. raw materials, marketing spend)
• Economies of scale (reduced costs as volume increases)
• Operational inefficiencies (costs that can be optimised)

Understanding your cost structure allows you to stay lean, price appropriately, and prepare for growth or external shocks. It is also helpful in identifying which parts of your business model are scalable and which are not.

Each of these nine building blocks works together to tell the full story of your business. They help you see what is working, what needs refining, and what opportunities might be hiding in plain sight.

If you want to build your own model using a structured, guided approach, you can purchase our business model canvas template from the Entrepreneurs.ng shop. Or if you would like expert support to map it out for your business, feel free to email us at Business@entrepreneurs.ng or send a WhatsApp message to 08038874148.

Modern-Day Business Model Canvas Examples

Understanding the business model canvas becomes easier when you see it in action. These examples offer a closer look at how different businesses, from digital platforms to service-based companies, bring their models to life.

Each one highlights a distinct approach to creating and capturing value, which can inspire you as you build or refine your own model.

Example 1: Paystack – Payment Infrastructure for Africa

Customer Segments: Small businesses, startups, large enterprises, developers
Value Proposition: Easy-to-integrate payment solutions for African businesses to accept online and offline payments
Channels: API integration, website, customer support, developer community
Customer Relationships: Onboarding support, documentation, live chat, API community forums
Revenue Streams: Transaction fees per successful payment
Key Resources: Software engineers, payment gateway infrastructure, compliance systems
Key Activities: Platform maintenance, customer support, regulatory compliance
Key Partnerships: Banks, card networks, telecom operators
Cost Structure: Infrastructure, personnel, security, and partner fees

Paystack’s model succeeds by solving a real challenge- making it easier for businesses across Africa to get paid online securely and seamlessly. Its developer-friendly tools and localised solutions give it an edge in a complex financial environment.

Example 2: Netflix – Entertainment Streaming Platform

Customer Segments: Global consumers of video content
Value Proposition: On-demand access to movies, series, and original content with personalised recommendations
Channels: Mobile apps, smart TVs, web browsers, gaming consoles
Customer Relationships: Account personalisation, automated suggestions, minimal support interaction
Revenue Streams: Monthly subscription fees across multiple tiers
Key Resources: Content library, proprietary recommendation engine, global distribution technology
Key Activities: Content licensing, content production, platform management, user engagement
Key Partnerships: Production studios, ISPs, content distributors
Cost Structure: Content creation and licensing, technology infrastructure, marketing

Netflix is a classic example of a scalable subscription model. Its ability to deliver content efficiently while tailoring the experience to each user shows the power of combining data with creative content.

Example 3: TikTok – Social Media Platform and Content Creator Hub

Customer Segments: Creators, general users, advertisers, brand partners
Value Proposition: A platform for short-form creative content with high engagement and viral potential
Channels: Mobile apps, influencer networks, in-app ads
Customer Relationships: Creator programs, algorithm-driven content discovery, in-app notifications
Revenue Streams: Ad sales, brand sponsorships, in-app purchases
Key Resources: User data, recommendation engine, global content distribution system
Key Activities: Content moderation, algorithm development, user acquisition
Key Partnerships: Music labels, advertisers, content creators
Cost Structure: Server infrastructure, R&D, marketing, creator incentives

TikTok thrives on the content-creator economy. Its success is not just about videos, it is about how content reaches the right audience at the right time, creating engagement loops that keep users coming back.

These examples show that the business model canvas is not just theoretical. Whether you are building software, offering a service, or creating content, the canvas helps you clarify how your business works in practice.

If you want to apply the same level of clarity to your own idea, you can download our business model canvas template from the Entrepreneurs.ng shop. And if you prefer expert input, send a message to 08038874148 or email Business@entrepreneurs.ng—we can help you create a customised model that suits your unique business goals.

The Business Model Canvas as a Living Document

One of the most common mistakes entrepreneurs make is treating the business model canvas like a one-off exercise. They complete it at the start, file it away, and never look at it again. But the most successful businesses treat their canvas as a living document, something that grows and evolves as the business learns, adapts and scales.

Markets shift. Customer preferences change. Competitors emerge. What worked six months ago may not be working today. When you revisit your business model canvas regularly, you can spot weak links before they become problems.

You might realise a customer segment you thought was ideal is no longer profitable. Or discover that a new revenue stream is quietly outperforming the original one.

The canvas also becomes a reflection of your learning. Each time you update it, you capture insights from customer feedback, sales trends, or internal team discussions. This makes your decision-making more grounded and helps you build a business that stays aligned with what your customers actually want, not what you assumed at the start.

We encourage entrepreneurs to treat the canvas as part of their regular planning rhythm. Some review it quarterly, others when making major changes like launching a new product, entering a new market, or onboarding new team members. And if you’re not sure where to start, that is exactly the kind of work we do with businesses during strategy consultations. You can reach out via WhatsApp at 08038874148 or email Business@entrepreneurs.ng if you want help reviewing or updating your model.

Step-by-Step Guide to Building Your Own Business Model Canvas

Building a business model canvas is about understanding how every part of your business connects to create something valuable and sustainable. Whether you are just starting out or refining a business that is already running, this step-by-step guide will help you approach each section with clarity and purpose.

Before you begin, get a copy of the business model canvas—either printed or digital. If you need a ready-to-use, editable version, you can grab one from the Entrepreneurs.ng shop. Now let’s get started.

Step 1: Define Your Customer Segments

Ask yourself: Who are you serving?

List out the different groups of people or businesses that your product or service is built for. Each segment may have unique needs, behaviours, and expectations. The clearer you are here, the better you can serve them.

• Avoid saying “everyone”—be specific.
• Consider demographics, behaviours, values, and spending habits.
• Think in terms of primary and secondary segments.

Example: A meal prep service might target busy professionals in urban areas, but also health-conscious gym-goers as a secondary group.

Step 2: Craft a Strong Value Proposition

Ask yourself: What makes your offer valuable to those customer segments?

This is not just a list of features, it is the real benefit or transformation your customer experiences. It should solve a problem, fulfil a need or improve something important in their life or work.

• Use customer language, not industry jargon.
• Think about what frustrates your customer and how you make it better.
• Value can be emotional, functional, or financial.

Example: A bookkeeping app may offer peace of mind to freelancers who are overwhelmed with tax season, not just automated calculations.

Step 3: Identify the Right Channels

Ask yourself: How do customers find you, and how do you deliver value to them?

Your channels include all the ways you reach, inform, sell to, and support your customers. These can be online or offline, owned or through partners.

• Break this down into stages: awareness, evaluation, purchase, delivery, and after-sales.
• Focus on the channels your customers actually use, not just the ones you like.
• Aim for consistency in tone and experience across all platforms.

Example: A fashion brand might use Instagram to build awareness, a Shopify store to sell products, and WhatsApp for order support.

Step 4: Map Out Customer Relationships

Ask yourself: What kind of relationship do your customers expect or need?

This is about how you engage, communicate, and build loyalty. It could be personal or automated, transactional or long-term. The key is alignment—your relationship style should match your audience and your brand.

• Define how you acquire, retain, and grow your customers.
• Consider using email sequences, live chat, loyalty rewards or educational content.
• Relationship quality often becomes your competitive edge.

Example: A coaching business might build relationships through webinars, personalised check-ins, and an active WhatsApp group.

Step 5: Pinpoint Revenue Streams

Ask yourself: How does your business make money?

This section outlines the ways you collect payment for your value. Some businesses rely on a single revenue stream, while others diversify to reduce risk.

• List all the ways you charge—sales, subscriptions, commissions, etc.
• Think about pricing: Is it fixed, tiered, pay-as-you-go, or dynamic?
• Match the revenue model with the customer’s willingness to pay.

Example: A SaaS tool might offer a freemium model with premium features available via a monthly subscription.

Step 6: List Out Key Resources

Ask yourself: What assets are crucial to delivering your value proposition?

These are the things you must have in place to operate. They can be tangible or intangible, and they often require investment.

• Think beyond physical resources. Include software, licences, data, or brand equity.
• If your business relies heavily on people, those skills are a resource too.
• Highlight the resources that give you a competitive edge.

Example: A digital marketing agency might list its team of copywriters, analytics tools, and client case studies as key resources.

Step 7: Outline Your Key Activities

Ask yourself: What must you do consistently to keep your business running and your customers happy?

This includes both back-end operations and front-facing tasks. These activities should directly support your value proposition and business goals.

• Focus on activities that drive results, not every little task.
• Be realistic about what needs to be done in-house versus outsourced.
• Prioritise the activities that impact quality, speed, and delivery.

Example: An e-learning platform might focus on course development, student support, and tech maintenance.

Step 8: Identify Key Partnerships

Ask yourself: Who helps you succeed?

Very few businesses thrive alone. Partnerships help you access skills, resources, customers, or reach you could not get on your own.

• Consider suppliers, distributors, service providers, joint ventures or affiliate networks.
• Partnerships should reduce cost or risk, or increase value.
• Document informal partnerships too, if they are critical to success.

Example: A skincare brand may partner with a local manufacturer, an influencer for brand awareness, and a logistics company for fulfilment.

Step 9: Understand Your Cost Structure

Ask yourself: What are your major expenses?

This block forces you to look at your spending through the lens of your business model. It shows whether your business is more cost-driven or value-driven.

• Divide costs into fixed and variable.
• Link each cost to a resource, activity or partnership.
• Consider opportunities to improve efficiency.

Example: A subscription box service might have fixed costs like packaging design and variable costs like product procurement.

When you complete all nine blocks, you will have a clear, high-level view of how your business operates. More importantly, you will be able to see the connections, how a change in one area affects the others.

You can use sticky notes on a wall, fill out a printed canvas, or use a digital template. Our paid templates in the Entrepreneurs.ng shop are ideal for entrepreneurs who want to build with structure and polish. And if you would rather get expert help mapping it out, you can reach us anytime at Business@entrepreneurs.ng or on WhatsApp at 08038874148.

Common Mistakes to Avoid When Using the Business Model Canvas

The business model canvas is a powerful tool, but like any tool, its impact depends on how you use it. Many entrepreneurs fall into predictable traps that weaken their models or prevent them from seeing the full picture.

Avoiding these mistakes will help you build a canvas that is not just clear but strategic and actionable.

Being Too Vague

One of the most common mistakes is writing broad, generic statements in each block. If your customer segment says “everyone” or your value proposition is “high-quality service,” you are not saying anything meaningful.

Be specific. The more clarity you have, the more useful your model becomes for decision-making.

Tip: Use real-world language and real descriptions. Think about what you would say in a pitch or strategy meeting, not what sounds good on paper.

Treating It Like a Business Plan

The business model canvas is not meant to replace a full business plan, and it is not designed for formal documentation. It is a strategic tool for shaping ideas, identifying gaps and staying agile. Trying to turn it into a business plan removes its flexibility.

Tip: Use the canvas for quick iteration. If you are looking for a formal business plan, you can always build that separately using insights from your canvas. Our business plan template in the Entrepreneurs.ng shop is perfect for that purpose.

Not Updating It Over Time

Your business will change, sometimes fast. If your canvas stays the same for a year or more, it is no longer helping you. Businesses that thrive are the ones that adapt. Your canvas should evolve alongside your customer insights, technology, and operations.

Tip: Make it part of your quarterly or bi-annual reviews. Bring your team into the process and use it to guide strategic decisions.

Ignoring Customer Feedback

If you build your business model in isolation, based only on what you think, you are likely to miss key insights. Customers are your most reliable source of truth. Ignoring their feedback often leads to mismatched offerings, poor channels, or weak revenue strategies.

Tip: After launching a product or service, return to the canvas and see what needs to shift. Let real data influence how you fill the blocks.

Overloading the Canvas

Sometimes in an attempt to be thorough, people cram too much into each block. The canvas is meant to simplify, not complicate. If it feels cluttered or difficult to read, you have probably gone too far.

Tip: Focus on the essentials. Each block should communicate clearly at a glance. If you need to explain more, use supporting documents or notes elsewhere.

Avoiding these common mistakes keeps your business model canvas clear, focused and relevant. It becomes a living framework you can trust to guide your business through any phase, from launch to scale to pivot.

Alternatives to the Business Model Canvas

The business model canvas is incredibly useful, but it is not the only tool available for mapping or refining a business strategy. Depending on your stage, goals or the level of detail you need, there are other frameworks worth considering.

Here are a few common alternatives and how they compare.

Lean Canvas – A Startup-Focused Alternative

The lean canvas is a variation of the business model canvas, created specifically for startups. It replaces several blocks like key partners and key resources, with startup-centric elements like “Problem,” “Solution”, and “Unfair Advantage.” This makes it a better fit for businesses still validating their ideas.

Use the lean canvas if:

• You are pre-launch or still in idea stage
• You want to quickly test assumptions and iterate fast
• You are focused on solving a specific problem in a new way

Value Proposition Canvas – A Deep Dive into Customer Fit

The value proposition canvas zooms in on just two parts of the original canvas: customer segments and value propositions. It helps you understand what your customers truly care about and how your offer matches their expectations, fears and desires.

Use the value proposition canvas if:

• You are struggling to clearly define your value
• You want to improve product-market fit
• You are refining messaging or planning a rebrand

SWOT and PESTEL Analysis – Broader Strategic Tools

While the business model canvas focuses on your internal model, SWOT and PESTEL are strategic tools that assess your external environment.

• SWOT (Strengths, Weaknesses, Opportunities, Threats) helps you evaluate your competitive position
• PESTEL (Political, Economic, Social, Technological, Environmental, Legal) helps you analyse broader macro forces affecting your business

Use SWOT or PESTEL if:

• You are planning long-term strategy
• You need to prepare for market shifts, regulation or expansion
• You are pitching to investors or preparing for growth

Each of these tools can be used alongside the business model canvas. In fact, many of the entrepreneurs we work with start with the canvas, then move into one of these alternatives as they go deeper into strategy. If you need help choosing or using the right tool, feel free to reach out—our team offers guided support for entrepreneurs at any stage.

Conclusion

The business model canvas gives you more than just structure—it gives you clarity. It helps you see how all the parts of your business fit together and where your biggest opportunities and risks lie. Whether you are starting something new or improving what already exists, the canvas helps you think strategically and make better decisions.

It is not about filling boxes. It is about building a business that works. The canvas gives you room to explore, test and adapt without losing direction. That is why we use it often with entrepreneurs in our strategy sessions, our Blueprint Program, and even in one-on-one advisory work.

If you need help building or reviewing your business model, reach out via WhatsApp at 08038874148 or email Business@entrepreneurs.ng. You can also visit our shop to access our business model canvas template, designed to help you map your ideas with confidence and focus.

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Frequently Asked Questions About the Business Model Canvas

What is the Business Model Canvas?

The Business Model Canvas is a strategic management tool that provides a visual framework for developing, describing, and analysing a business model. It consists of nine building blocks that cover the key aspects of a business: Customer Segments, Value Propositions, Channels, Customer Relationships, Revenue Streams, Key Resources, Key Activities, Key Partnerships, and Cost Structure.

This tool helps entrepreneurs and organisations align their activities by illustrating potential trade-offs and providing a clear overview of how a business creates, delivers, and captures value.

Who created the Business Model Canvas?

The Business Model Canvas was developed by Alexander Osterwalder, based on his PhD dissertation on business model ontology. It was later popularised through the book “Business Model Generation,” co-authored with Yves Pigneur.

Why should I use the Business Model Canvas?

Using the Business Model Canvas allows you to:

• Visualise and communicate your business model clearly.
• Identify gaps and areas for improvement.
• Align team understanding and objectives.
• Facilitate strategic discussions and decision-making.
• Adapt and innovate your business model in response to market changes.

How do I fill out the Business Model Canvas?

To fill out the Business Model Canvas:

1. Customer Segments: Define the different groups of people or organisations you aim to serve.
2. Value Propositions: Describe the products or services that create value for each customer segment.
3. Channels: Outline how you deliver your value propositions to customers.
4. Customer Relationships: Specify the types of relationships you establish with each customer segment.
5. Revenue Streams: Identify how your business earns revenue from each customer segment.
6. Key Resources: List the assets required to offer and deliver the previously described elements.
7. Key Activities: Detail the most important things your business must do to make its business model work.
8. Key Partnerships: Recognise the network of suppliers and partners that help your business operate.
9. Cost Structure: Summarise the major costs involved in operating your business model.

Can the Business Model Canvas be used for startups?

Yes, startups can use the Business Model Canvas to:

• Quickly sketch out and iterate on their business model.
• Test assumptions and hypotheses about their market and product.
• Communicate their business model to stakeholders and investors.
• Pivot or adapt their model based on feedback and learning.

What is the difference between the Business Model Canvas and the Lean Canvas?

While both canvases are tools for developing business models, the Lean Canvas, created by Ash Maurya, is specifically tailored for startups. It modifies the original Business Model Canvas by replacing certain sections to focus more on problem-solving and customer validation.

Key differences include:

• Problem: Identifying the top problems faced by the target customers.
• Solution: Outlining the proposed solutions to these problems.
• Key Metrics: Defining the key metrics that indicate success.
• Unfair Advantage: Highlighting the unique advantage that cannot be easily copied.

How often should I update my Business Model Canvas?

The Business Model Canvas should be updated regularly, especially when:

• Launching a new product or service.
• Entering a new market.
• Receiving significant customer feedback.
• Experiencing changes in the competitive landscape.
• Adjusting your business strategy.

Regular updates ensure that your business model remains relevant and aligned with your current objectives and market conditions.

Can the Business Model Canvas help in identifying revenue streams?

Yes, the Revenue Streams block of the Business Model Canvas helps you identify how your business earns income from each customer segment. It prompts you to consider various revenue models, such as:

• Asset Sale: Selling ownership rights to a physical product.
• Usage Fee: Charging customers for the use of a particular service.
• Subscription Fees: Charging for continuous access to a service.
• Lending/Leasing/Renting: Temporarily granting customers the right to use an asset.
• Licensing: Giving customers permission to use protected intellectual property.
• Brokerage Fees: Earning commissions for facilitating transactions between parties.
• Advertising: Charging for advertising space or exposure.

How does the Business Model Canvas relate to SWOT or PESTEL analysis?

The Business Model Canvas focuses on the internal aspects of your business model, while SWOT (Strengths, Weaknesses, Opportunities, Threats) and PESTEL (Political, Economic, Social, Technological, Environmental, Legal) analyses examine external factors. Combining these tools provides a comprehensive view of your business environment, helping you to:

• Align your internal capabilities with external opportunities.
• Identify and mitigate potential threats.
• Adapt your business model to changing external conditions.

Is the Business Model Canvas suitable for large corporations?

Absolutely. Large corporations can use the Business Model Canvas to:

• Innovate and develop new business lines.
• Analyse and improve existing business models.
• Foster a culture of strategic thinking and alignment across departments.
• Facilitate mergers, acquisitions, and partnerships by understanding different business models.

Where can I find templates or tools to create a Business Model Canvas?

You can find Business Model Canvas templates and tools through various resources:

• Entrepreneurs.ng Shop: Offers a paid Business Model Canvas template tailored for entrepreneurs.
• Strategyzer: Provides official templates and software tools.
• Canvanizer: Offers free online canvas creation tools.
• Business Model Generation Book: Includes templates and guidance.

For personalised assistance in developing your business model, you can contact us directly via email at Business@entrepreneurs.ng or WhatsApp at 08038874148.