Tuesday, September 18, 2012

Business Model Canvas

Any one who struggled with building a business would know the importance of understanding business model.  In order to put together a successful business, first all assumptions have to be spelled out.  These assumptions have to be refined and tested by talking to target customers constantly.  When all assumptions are validated, then creating a successful business becomes an execution task.

One useful tool to use when refining business model is Business Model Canvas.  I first saw this model from Steve Blank's Udacity class, How to Build a Startup.  Idea is to lay out 9 building blocks of business model into grids and constantly refine the assumptions as they are validated by talking to customers.

Take a look at quick overview of Business Model Canvas.

I think it's a great idea.  Often each building block of business model is considered in vacuum or examined with too few blocks to provide the overall picture.  By listing them out and constantly revising the data, it helps you track the revisions that you made as well as give you history of how your assumptions have evolved.

Thanks to BusinessModelGeneration.com, there is Business Model Canvas PDF file that you can download and print.  All you need is to get out and start talking to customers, partners, suppliers and builders -- the fun stuff.

If you need extra help with filling out BMC, here's a sample to give you some ideas.

Source: Forbes.com
If you have used BMC, I would love to hear how your experience was. 

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