Business Model Canvas
In one sentence
A one-page map of how your business creates, delivers and earns money from value.
The simple version
Instead of a long business plan, you fill in nine boxes on one sheet: who your customers are, what you offer them, how you reach them, how you keep them, how you make money, what you need, what you do, who helps you, and what it costs.
Key partners
Who helps you?
Key activities
What must you do?
Key resources
What do you need?
Value proposition
What problem do you solve?
Customer relationships
How do you keep them?
Channels
How do you reach them?
Customer segments
Who exactly?
Cost structure
Biggest costs?
Revenue streams
How do they pay?
Why it matters
It shows your whole business at a glance, so you can spot weak links and compare different ideas in minutes.
How to do it
- 1Customer segments: who exactly are you serving?
- 2Value proposition: what problem do you solve for them?
- 3Channels and relationships: how do you reach and keep them?
- 4Revenue streams: how and how much do they pay?
- 5Key resources, activities and partners: what do you need to deliver it?
- 6Cost structure: what are the biggest costs?
- 7Mark every box as a guess, then test the riskiest ones.
Real-world example
A dog-walking startup's canvas reveals its biggest cost (walker wages) is close to its revenue per walk — a red flag found on paper, not after launch.
What the books say
“A business model describes the rationale of how an organization creates, delivers, and captures value.”
The Lean Canvas adapts this idea for startups, swapping in boxes for the problem, solution, key metrics and unfair advantage.
Common mistakes
- Filling it in once and never updating it.
- Writing vague answers like 'everyone' or 'social media'.
- Treating guesses as facts.
Questions people ask
Business Model Canvas or Lean Canvas?
Lean Canvas is tuned for early, uncertain startups (problem-first). The Business Model Canvas suits more established ideas. Both fit on one page.
References
- [1]
- [2]
More books on this in the library
The Profit Zone
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Who: The A Method for Hiring
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Crushing It!
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Billion Dollar Lessons
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How to Make a Few Billion Dollars
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The 5 Types of Wealth
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