Most businesses have never had a business plan - their business model is not necessarily planned, because it works perfectly well organically.
No wonder that nearly 90% of start-ups fail within their first 5 years. Overcoming this challenge is not just the job of startups, but of all startups.
Most people don't start working on their business plan because they think they would have to write hundreds of pages of what their idea will be about, what their business will be about. There is a transparent business plan that focuses on clarity and simplicity - it can summarise the outline of any business plan in just one page, and even the whole business.
This is called the Business Model Canvas, or Business Model Planner.
Below we show how:
- Why is it so important to use any kind of business model?
- What is a Business Model Canvas?
- How does this simple business method work?
Here's everything you need to know about Business Model Canvas!
The importance of the Business Plan
To be successful, you must have a viable business model.
The business model is essentially about how your business will make profit in the future:
- What problem do your potential customers have (target audience and market)?
- What is the solution (product/service) you offering to solve their problem?
- How will you generate revenue, and more importantly, how will you generate profit in the process?
This is what Business Model Canvas, or BMC does, in a short, simple and transparent way.
Business Model Canvas - the meaning of a BMC plan
The Business Model Canvas, or BMC in a short form, is one of the most useful business planning documents.
It can answer, on just one page, all the important questions you need to understand about your business or business idea.
Having a Business Model Canvas at your fingertips has a numerous advantages:
- You can see exactly what are the strengths, weaknesses, opportunities and threats of your business
- It is easy and quick to see what is your mission, what should be your strategy strategy and the exact steps of your business
- Filling in the canvas gives you a deeper insight into where your company is heading, or where you wish to head with your growth strategy
But how does the canvas look like in practice?
Az Üzleti Modell Tervező
A Business Model Canvas looks like the following, if you open it from the Sciencer website:
The document itself contains the following 9 sections.
- Value Proposition
- Customer Segments
- Customer Relationship
- Revenue Streams
- Cost Structure
- Key Activities
- Key Resources
The first major section therefore deals with the product/service offered by the business, the second, third and fourth with the target audience and marketing, the fifth and sixth with the cash flow, the seventh and eighth with the business's activities and the ninth with the external partners that help the business.
When an entrepreneur puts all of these together, lays them out and examines them, a lot of correlations will emerge, enabling him to see exactly where he should put the greatest emphasis for growth.
As you can see from the picture, it doesn't need to be long sentences - in fact, the point is to get the point across in a concise yet clear way, using only key words so that whenever you look at it, you can see immediately what the most important pillars of your business are.
Business Model Designer is the most popular method of simplicity, and now you can try it on the Sciencer website! The Business Model Planner is available on the Sciencer website, after registration and filling in your profile, now free of charge as an introduction. Don't miss your chance to learn about this business development and design software in an interactive way.
And if you have any questions about building a business model, writing a business plan or any other business-related activity, contact us on the Sciencer website!