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Organisational plan

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Business Model Canvas: the 9-step business plan

Jeanine Hoekstra
12 September 2021
Edited 10 September 2024
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Do you want to start a business, is your market changing, or do you have an idea for a new product? With the Business Model Canvas, you can make a plan that will continue to grow with your business . Chart your business model, so you can finetune and adjust at will. This articles takes you through the nine steps you need to complete the model

What is the Business Model Canvas?

The Business Model Canvas (BMC) gives you an overview of all the important aspects of your company. It helps you see how these aspects are interrelated. This means you can respond better and faster to changes in the marketplace.

The BMC consists of 9 building blocks, These blocks describe your entire company both internal and external. Think of organisation, value proposition, customers, suppliers, costs and revenues. The model helps you discover the strengths and weaknesses of your organisation

How do I complete the Business Model Canvas?

The 9 building blocks are often depicted on a large fill-in sheet. You can download a form or use a whiteboard or large sheet of paper. Fill in the model while brainstorming. You can do this alone, or with others, such as colleagues or other entrepreneurs. Together, you often come up with more ideas and insights.

These are the 9 building blocks of the Business Model Canvas:

1. Customer segments: who is your customer?

This section describes different groups of customers that you want to reach with your company. These people or organisations are the core of every company. It is difficult to survive without customers. Make a conscious decision about the customer groups you want to target, and the ones you don’t. Each customer group has its own wishes. Try to get a clear picture of these wishes. Adjust your product or service accordingly.

2. Value propositions: why do customers choose you?

A value proposition describes the unique value your company offers to your customers. Why does a customer choose you? Is it the good service, the unique offer, the convenience, the price, the quality? Or a combination of these? Ask existing customers, or the customers you would like to reach in the future.

3. Channels: how do customers find your company?

Channels play an important role in how a customer experiences your company. You have communication, distribution, and sales channels. Each channel has a different function, for example:

increasing awareness about your product or service
offering service after purchasing your product
gathering feedback from customers on your company

4. Customer relations: online or offline?

Choose how you want to interact with your customer. This can differ per customer group and depends on your goal. Do you want to bring in new customers or keep existing customers? Are you aiming for faster delivery times or a better customer rating? The customer relationships and contact moments you choose influence the impression you leave on your customer. A good customer experience can make money for your company.

5. Income flows: who will pay you for what?

Each customer segment can generate one or more revenue streams. For example because they buy or rent a product from you, or pay for a service. To make a profit, your income must exceed your costs. In this step of the BMC, you put down on paper how much turnover or how many customers you need to break even.

There are many different revenue models . Do you sell individual products or subscriptions? Or do you have franchisees? Or do you generate income through service or advertising activities? Research what your customers are willing to pay for the value you provide.

6. Key resources: what do you need to move forward?

Key resources are the tools and resources you need to make your business model work. These resources ensure that you reach your market, nurture relationships with your customers and make money. Resources can be physical (such as equipment), intellectual property , financial, or human (the knowledge and skills of your employees). The key resources you need depend on your business. For an online shop, you need a smoothly functioning website. For a delivery service, you need a reliable vehicle

7. Core activities: what will your company do?

This is about your most important business activities. You need them to make money, to maintain your customer relationships and to reach your markets. The most important question is: what exactly are we going to do as a company to ensure that our business model works? And what will we not do? Some activities are best done yourself. Others are better outsourced.

8. Key partners: who do you work with?

For this block, you think about who you want or need to collaborate with. Your partners. With the right partners you will reach your goal faster. For example, grow your company and be more successful in the markets in which you operate. Get to know your (potential) partners well to ensure a successful collaboration.

9. Cost structure: what does it look like financially?

Starting and running a business costs money. Identify your financial needs . Define your key resources, core activities, and key partners clearly. Then calculate your costs. What are your highest costs, where can you cut costs, and how can you achieve economies of scale?

Done, what now?

Once you have gone through all the steps of the Business Model Canvas, you will have a good idea of where you stand with your business. With that information, you can make well-founded and goal-oriented choices. You did not create this plan to just leave in a desk drawer. Translate it into concrete actions Check your completed Business Canvas Model regularly to see how you can continue to develop your business.