Business Model Canvas
A simple map of how your business creates, delivers, and captures value
The Business Model Canvas (BMC) is a one-page tool that helps leaders and teams see how their business works. It was created by Alexander Osterwalder in 2005 and is widely used around the world.
It breaks a business into nine building blocks:
Customer Segments: Who you serve (e.g. families, small firms, large corporates).
Value Propositions: The benefits you deliver (e.g. fast service, lower cost, premium quality).
Channels: How you reach customers (e.g. shops, online, distributors).
Customer Relationships: How you connect with customers (e.g. self-service, personal support).
Revenue Streams: How money comes in (e.g. sales, subscriptions, licences).
Key Activities: What you must do well (e.g. manufacturing, logistics, design).
Key Resources: The assets you need (e.g. staff, patents, machinery).
Key Partners: External allies (e.g. suppliers, joint ventures, investors).
Cost Structure: The main costs (e.g. salaries, raw materials, rent).
Why It Matters
Gives a clear overview of your whole business on a single page.
Helps align boards, managers, and teams with one shared picture.
Makes it easier to spot gaps, risks, or opportunities.
Useful for new ventures, but also for established firms needing clarity.
Simple Example
Imagine a coffee shop:
Customers: commuters, students.
Value: quick, affordable coffee.
Channels: high street shop, delivery app.
Revenue: coffee sales, snack add-ons.
Key activities: brewing, supply management.
Partners: bakery supplier, delivery app.
The Business Model Canvas can be used to show how everything fits together.