Do you already have a business idea that you are truly convinced of? Then you have already overcome the first hurdle. Now it’s time for the next major step: transforming the business idea into a viable business model. This is the only way to see whether your solution can survive in the market. A suitable tool here in an initial phase is the business model canvas. The model is limited to nine key business drivers.
What is the value proposition for your customers and which customer problems do you solve?
Which concrete target group(s) do you serve? Which target group(s) is/are most crucial for your business model?
Which touchpoints arise with your customers? Where do your customers get their information from and how are they made aware of your solution?
How will you maintain the customer relationship? Is it a one-time exchange or is the customer to be tied through contracts, subscriptions, etc.?
Which key activities and processes result from your value proposition?
Who are your key partners or key suppliers? Which resources do you need from them?
What resources do you need to deliver your value proposition? What skills does your team need?
What costs can you expect to incur? Which resources or activities are the most expensive?
How do you earn money with your business model? Do you have different revenue streams? How much do customers pay or how much are they prepared to pay for your product?
The business model canvas has gained traction in recent years as a business-modelling tool and the scope of use has continuously expanded. Numerous company founders, innovators and experts have been convinced by its simplicity and clarity. The canvas visualizes and combines the nine key factors of a business model. As a young entrepreneur, you remain focused on the key drivers of a business and can analyse your business model thoroughly and optimize it continually. This is what makes the business model canvas the ultimate test of the business idea.