The business model canvas: tool to help you understand a business model 17-02-2020, 09:35

Step by step guide

Before you start

You can learn a lot from your competition. Choose some competitors and
map their business models. Armed with this information you’ll have deep
insight into what customers want and what they are willing to pay for. You’ll
have a clearer picture of just how customers’ needs are met across the
entire industry, not just in your company. And, you’ll uncover vital
information about how other businesses, maybe even very successful
businesses, have created their own spaces in the market.

Checklist

⊗ Get the right team of 3-5 people together

⊗ Grab a large chunk of wall space
⊗ Print or draw the canvas on a big sheet of paper
⊗ Have plenty of sticky notes and markers ready
⊗ Allow yourself 45-60 minutes of undisturbed time

High level

Start by mapping out the business on a high level: only the most important,
vital aspects of the business model.

TIP! Try to make your criteria as clear as possible, so that you and others

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The business model canvas: tool to help you understand a business model 17-02-2020, 09:35

will still understand what they mean in three months time. split up more
complex design criteria.

Connect the building blocks

Link up the building blocks: every value proposition needs a customer

segment and a revenue stream! When everything is on the board, take a
step back. Have a short break. Did you miss anything? Forget something?

Tip! If you have multiple customer segments it is best to pick a colour for
each segment in the post-it notes you use. That way you easily see if for
each segment there is a value proposition and a revenue stream.

Current state

Don’t mix ideas for a future state with what is going on right now, and don’t
mix different departments!

Tip! If you work for a large organization you might find varying value
propositions and business models. In that case ask the different
departments to map out their own business models. You can compare them
afterwards.

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The business model canvas: tool to help you understand a business model 17-02-2020, 09:35

Review

Take a step back check if every customer segment is linked to a value

proposition and a revenue stream. Make sure everything on the left side of
the canvas is needed to support the right side of the canvas. Everything
else can go.

Rank your business model’s performance (0:bad, 10:excellent) for each of

the following questions:

⊗ How much does switching costs prevent your customers from churning?
⊗ How scalable is your business model?
⊗ Does your business model produce recurring revenues?
⊗ Do you earn before you spend?
⊗ How much of the work can be done by others?
⊗ Does your business model provide built-in protection from competition?
⊗ On what cost structure is your business model based?

Next steps

Tip! Have an artist visualize your business model. It helps to create impact
when sharing the model and it makes it easier for others to become
connected.

Checklist

⊗ Take a snapshot picture of your business model canvas for easy to share
future reference
⊗ Ask team-members discuss the business model with others

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The business model canvas: tool to help you understand a business model 17-02-2020, 09:35

⊗ Trigger team-members to actively look for 1-2 blind spots

⊗ Filter out the design criteria
⊗ Test your assumptions

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