How do you use the business model canvas? I am going to walk through how to do your business model canvas and use it to make better decisions in a number of small steps. It will take a few days but we will slowly, together, layer levels of understanding . All you need to do is stech as I sketch, note as I note, and your own business will emerge.
This is ideal if you run, own, manage, lead or study a business. A little bit of learning in less than 5 minutes a day.
Let’s start.
Sketch the Business Model Canvas
Grab a piece of A4 (or any other size that works for you)
Sketch out the business model canvas
An L on its side. Then another one to close the square. Don’t worry about making it pretty
Draw a line across, about 1/4 of the way up. Then Cut it in half.
Then four strokes in the upper block, equally spaced. Then cut the two middle panels in half.
That gives you your basic business model canvas.
It’s that simple
Don’t bother using a template unless you have an easy way of keeping them handy. Being precise just slows you down and your mental focus is on the drawing, not your business.
Starting on Your Business Model
To make this a little bit more real and give you an example to follow I’m going to put my business in. This makes it easier for you because like me, you’ll have a bunch of thoughts about your business and the process will help you structure them.
The first thing that I usually do is to write down the problems that the business is solving. I use the space at the bottom of the value proposition section.
Hit the Problem
In this case, I’ve written
- The old business models don’t work any longer
- finding new business models that work is tough
That captures the heart of it. Is it the best formulation? Probably not. As you repeat and iterate you get it smoother. It is however good enough – and gives us the focus that we need to build the rest of the model.
Really, what I want you to appreciate here is that you can’t get this wrong. Putting together a great business model is an iterative process.
It’s always going to be solving a problem. A big problem. A painful problem.
The data shows me that over the next couple of decades tens of millions of SMEs will be destroyed by market forces. At the same time, a similar number of startups will form. Trillions of dollars and hundreds of millions of lives will be affected.
Is that a problem worth solving? I think so. What’s the problem you are solving?
Condense it down into 2-3 bullet points. A couple of words in each. If you need to write an essay you aren’t there yet. You’re not wrong, so much as focused at the wrong level. You need to come up to a higher level.
As we go through the process, if you change the problem, that’s ok. Come back to this point and start over. As many times as you need.
Tomorrow we’ll carry on 🙂
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