"It’s not the product – it’s the business model” – Steve Baker (Entrepreneur)
I have been using the Business Model Canvas to quickly capture my client's business models. It really helps you understand and clarify where you want to go with you business, who you serve and whether your creative business model will pass the numbers test and make you the money you need to fund your creative projects.
A Business Model Canvas basically helps you to visualise your whole business in 9 building blocks as shown in the image above.
Once completed, (it shouldn't take more than 20 minutes to get a first draft out), it enables you to quickly communicate your business model to: Your team members, your honey, potential investors, at networking meetings and anyone else that may be interested in your business.
There is a Business Model Canvas Template with instructions in my F.A.B Club as part of my Savvy Cash Booster Kit here :
Your Business Model Canvas will identify:
1. The ideal customers that will buy your creative products or services and this will have save your marketing budget
2. Your customer's problems as they relate to your product/service so that you can better supply what your customers need
3. Existing alternatives i.e. your competition and see how they make money
4. How you solve your ideal customer's problems with your product or service. This can be a hard one for creatives to get their heads around but knowing this will give you the confidence to sell your products or services.
5. Unfair advantage - what you do better than your competitors?
6. Your Unique Service/Value Proposition, what value do you bring to your customers?
7. What channels you will use to market and sell your products/services
8. Your main revenue streams and your projections of revenue and further opportunities
9. Your projections of fixed and variable costs and what is needed to fund your creative business to the point of profitability
In addition you can identify your team, other resources such as joint ventures for referrals and your main milestones.
So your business canvas becomes your snapshot business plan on just one page! It's a magnificent visual tool. Some people use post it notes to complete the building blocks so they can keep it flexible and colourful. Alternatively, you can do a separate canvas for each of your business ideas to test their viability and which model will make you the most money while serving your ideal customers.
There are different versions of the business canvas, the original is by Alexander Osterwalder.
Don't worry about finding some sections difficult to complete leave it blank for now and the empty space becomes a reminder that there are some areas of your business model that you need to get clear on.
If you haven't used the canvas model before, I have a copy with instructions for you.
I've adapted one from Liveplan and I am happy to share it with you.
Yup, it's yours for asking! Just click here to email me: