Business plans are essential to help map out of the future of a company. Without a plan, businesses are likely to steer in the wrong direction. Business plans, however, often become close to 15 to 20 pages before the business entrepreneur is even finished. That is when Alexander Osterwalder, a Swiss business theorist, author, and consultant, recognized the need for a condensed business template. This resulted in his invention of the Business Model Canvas.
The categories include key activities, key resources, key partners, value proposition, customer segments, customer relationships, channels, cost structure, and revenue streams. Osterwalder believed that “once you understand business models you can then start prototyping business models just like you prototype products”. The Business Model Canvas can adapt to any business or organization. It can be utilized to understand customers, recognize competition, spur innovation, and facilitate communication internally.
The Business Model Canvas is free to use online at www.canvanizer.com.