Design a new business or improve on an existing model for growth.
One tool we use to help our customers better understand their business is the Business Model Canvas (BMC). By distilling the working parts of your business into a succinct one-page overview, we uncover some interesting and valuable insights.
One key component of the BMC is to think of the business from multiple aspects. While there might be a strong focus placed on delivering a certain value proposition to a customer, attention should also be paid to suppliers and resources needed. The base of the BMC is understanding the Value Proposition and the key Customer Segments while consistently referencing the revenue model.
Here’s an example of a blank BMC, adapted from: www.businessmodelgeneration.com
In our experience, a lot of start-up businesses and entrepreneurs struggle to articulate their business model. As a result they tend to either over-simplify (for example, “we’ll have ads” or “we’ll sell subscriptions”) or ignore it all together. We often hear the phrase, “We’ll come up with a revenue model later.” The BMC allows us and the client to discuss the business model in simple terms, while still providing enough detail to set a clear path to a successful launch.
The simplicity of this tool allows us to go fast. For most clients, they’ll have multiple business models, particularly if they are dealing with different customer segments. By being able to quickly plan out each subset, we can ensure we’re keeping the various aspects of the business in mind.
A welcome side effect in defining segments of a business model is that we are driven into a deeper discussion involving customer development, value proposition design, and user experience.
The BMC can work for any type of business. It can improve a government department’s understanding of what they provide their constituents. It can give a larger business gain insight into the specific products or services they offer. It definitely helps start-up businesses and burgeoning entrepreneurs by giving them a simple way to experiment and iterate.
How can an interactive agency help you with your business model? Simple. First, we have some of the most creative thinkers around working for us and that creativity always leads to innovative ideas. Second, because we work closely with so many different businesses and clients, we have a very large vocabulary when it comes to business models. Lastly, we’ve built many canvases and we have experience leading the process.
If you’re interested, get in touch with us and we’ll set up a workshop. We’ll invite you to our office, which has been designed with this type of fun, collaborative work in mind, and we’ll put together a mix of your stakeholders and our creative team to help you figure out your own BMC.