The Business Model CANVAS is the key template for developing a new business model. With this template, any company can easily describe their business model which will in term help organize their ideas and thoughts.
The CANVAS model is broken into nine building blocks that covers everything needed to help start up and maintain a successful business. Here the investors can see whether or not they believe it would be a good investment. First is key partnerships, this describes who the business will team up with in creating their product. These are typically done with existing companies that have extensive knowledge on the topic or who already produce the good or service. Sense they have prior knowledge on the topic they can help where the start up company may lack.
Next is key activities, this is related to our value proposition, how the company develops its product, and what kind of tactics they use for their distribution channels, customer relationships and revenue streams. Next is Value proposition. This is broken into three categories, the value, problems solved and customers need.
This helps the customer understand how it will help enhance their day to day life. Next is customer relationship, how the company is seen through the eyes of the consumer.This helps develop loyal customers who wont just buy the product, but also help spread and get the companies name out.
Customer segments is our fifth block and is the companies target market, where and who will the company affects the most. Its important to focus on a specific group and market for optimal sales. Next is key resources, these are outside companies that specialize in a certain areas that the company lacks. Also included is the companies main distribution channels, which is simply where the new company will focus its sales. Next is Channels, or how the company will reach its customers. This is very important because without marketing the consumer will not know about the company or their goods being sold. Cost structure involves all the activities and resources that will cost the most.
This helps determine the amount needed to start the company and how much they may need from outside investors. The final block is revenue streams. This determines why the customers are willing to pay for the product and how each stream contributes to the overall revenues. Its important to price the product in such a way that will make the consumer feel like they have a viable reason to buy it. CANVAS is related to the business plan because it outlines what is needed for the company in order to become successful in a precise, organized way. With the CANVAS model in place the company we be able to see what they need, who they need and how much money they need in order to build and develop its idea. Both will ultimately help the company receive funding. CANVAS helped our group by getting all our ideas down on paper in a clear organized fashion.
From there we were able to see our companies strengths and weaknesses, where we had to focus most of our attention on in order to become a a successful business. These blocks also helped us create goals for our business by creating milestones for ourself.