How to prepare a Business Model Canvas ?

In a nutshell, the Business Model Canvas is a method for quickly and schematically representing your company's business model. Particularly well-suited to start-ups, it maximizes your chances of success with investors. But what are its advantages, and what elements should a complete Business Model Canvas contain? If you'd like to start your own business, join our Bachelor of Management program to strengthen your management skills and put the odds in your favor.

What is a Business Model Canvas? (BMC) ?

The Business Model Canvas (BMC) is a visual and strategic tool for describing, designing and analyzing a business model in a simple and intuitive way. This tool is particularly popular with entrepreneurs, start-ups and companies looking to define or rethink their business model. Using a single table divided into nine blocks, the BMC provides an overview of how a business operates, focusing on both its internal and external aspects.

The appeal of the Business Model Canvas lies in its simplicity and ability to stimulate strategic thinking. It enables you to quickly visualize the different components of a company, see the relationships between them, and identify the strengths and weaknesses of the business model. The BMC is also an excellent collaborative tool, used in workshops or brainstorming sessions to generate ideas, explore opportunities and fine-tune strategies.

The Business Model Canvas is made up of nine key elements that cover all the fundamental aspects of a company's business model:

Element 1 : Customer Segments 

This block identifies the different target customer groups that the company seeks to reach and serve. Each segment may have different needs, expectations and behaviors, enabling the company to personalize its offers. For example, a company may target both individual consumers and businesses, or different types of niche markets.

Element 2: Value Proposition

 The value proposition is what sets a company apart in the marketplace. It is the set of products or services that create value for customer segments. It answers the questions: Why should customers buy from you? What do you offer that's new or better than your competitors?

Element 3: Channels 

Channels are the means by which a company reaches and interacts with its customer segments. They cover all stages of the customer experience, from product or service awareness to purchase and after-sales service. Channels can be direct (online sales, physical stores) or indirect (distributors, partners).

Element 4 : Customer Relationships 

This block defines the nature of the relationships the company maintains with its customers. These can range from personal assistance to automated or community services. This block has a strong influence on customer loyalty and satisfaction, which is essential in the long term.

Element 5: Revenue Streams
These are the different ways in which the company generates revenue from its value proposition. Revenue streams can be varied, including direct sales, subscriptions, licenses, advertising and commissions. The BMC makes it possible to clearly identify which customer segments contribute most to revenues.

Element 6: Key Resources 

This block describes the essential assets a company needs to operate and deliver its value proposition. This includes the human, technological, financial, material or intellectual resources needed to create, distribute and support the product or service.

Element 7: Key Activities 

These are the tasks and processes required to implement the value proposition, reach customer segments, and maintain customer relationships. These may include production, operations management, marketing, or new product development.

Element 8: Key Partnerships 

Key partners are the strategic alliances the company establishes to optimize operations, reduce risk or acquire new resources. These may include suppliers, business partners, or strategic alliances with other companies.

Element 9: Cost Structure 

The cost structure encompasses all the expenses required to operate the company's business model. This includes costs related to resources, activities and key partners. This block helps determine whether the company is oriented towards minimizing costs or maximizing value.

How to prepare your Business Model Canvas ?

Before getting started, it's crucial to understand the nine blocks of the Business Model Canvas. These elements are interdependent and will help you define your company's overall strategy.

The Business Model Canvas is an excellent tool for stimulating collaboration. Bring together everyone involved in the project, including experts from different fields (marketing, finance, production) to get a complete overview. Use post-it notes and a whiteboard to facilitate exchanges, as these elements allow great flexibility and encourage everyone's active participation.

Start by identifying your customer segments. Who are your main customers? What are they looking for? Different segments may have different needs, expectations or behaviors, and understanding them is essential to adjusting your strategy. Think about the different types of customers you want to serve, and prioritize them.

Then take the time to reflect on each of the following blocks to clearly visualize your project's strengths and weaknesses, and adjust your strategies accordingly. Collaborative, visual and flexible, the BMC is the ideal tool for boosting your company's innovation and performance.

Mistakes to avoid in your BMC model 

Mistake 1: Poorly defined customer segments

Identifying your target customers is crucial to adapting your strategy.

Mistake 2: Unclear value proposition

Be precise about what differentiates your offer and respond to customers' specific needs.

Mistake 3: Unsuitable distribution channels

Choose viable channels adapted to your customers and resources.

Mistake 4: Neglecting customer relations

Customer loyalty and commitment are essential in the long term.

5: Incorrect assessment of revenue sources

Diversify your revenues and test different pricing models.

6: Wrong identification of key resources

Make sure you have all the resources you need for your business.

Error 7: Underestimating key partners

Strategic alliances are essential to optimize your model.

Error 8: Forgetting the cost structure

Correctly forecast fixed and variable costs to avoid cash flow problems.

Mistake 9: Not adjusting the CMB

Regularly test your model and adjust it according to market feedback.

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