Business Canvas, Definition and Its Important Components

Have you ever heard of the canvas model business?

Even though the canvas business model has been the topic of conversation very often, in fact there are still many who do not really understand this business model.

Business models are commonly used by entrepreneurs or companies in developing their business to be more efficient and effective in reaching their target market

A business model can be a strategic description that covers everything the company is about and how it makes a profit. This business model was introduced by Alexander Osterwalder. With this business model, it is hoped that all new companies will gain access to the market faster and profits, even in a short time.

This is because the canvas business model has 9 components, all of which are interrelated with one another.  Surely you are also curious about these 9 factors.  Ok, here are the 9 main factors involved in this business model.  Watch carefully.

1. Customer Segment

The customer segment will describe more specifically the customer segmentation of your company. For example, market segments are selected based on economic level, particular community, age and also specific consumer behavior.

If you divide the consumer segment well, then you will easily understand and capture what the market or consumer needs of your business are.  The simple term is to find the right target to sell products or services from your company.

2. Value Proposition

Value Proposition will easily describe what benefits consumers can get if they choose products from our company.

This will be a differentiating value from your company when compared to products or services offered by other companies.

To be able to implement this, you must do research first to find out what values ​​your company has but does not have with your rival's company. That way, it is easier for you to strengthen these values ​​to be used as strength in marketing.

3. Channels

Channels are also the right way for you to use in conveying your business or company value proposition to consumers.

You must be able to choose the right channel so that you will easily be able to target the target consumers that you have planned. There are many channels you can do.

If you are creative in using the channel, then your chances of being featured over others will be even greater.

4. Customer Relationship

This is a container or way that will continue to be in touch and certainly will further strengthen the company's relationship with consumers.  This is important to do because your business customers have an ongoing number.

So that you are also obliged to defend them.

Social media can easily be an example of Customer Relationship so that consumers will feel closer to the company or business we are living in. You will also easily make offers, promos, discounts and other things through Customer Relationships.

5. Revenue Streams

The revenue stream is an obligation that must be owned by the company. The company must have a clear and reasonable revenue stream.

This is important to do so that your business or company will survive. This is also where you can describe where you benefit from.

6. Key Activities

The next component in the business model canvas is Key Activities. It's important to make a list of activities that must be done by your company including supporting activities.

From here, you can also see the human resources you need and also the managerial time for the work.

A company should have a clear timeline for doing something, so that you and your team will have a target for completing the work.

7. Key Resources

Key Resources are resources that your company must have. These key resources include everything including human resources, equipment and equipment.

So that Key Activities and Value Propositions can be carried out and given to all your customers.

8. Key Partnership

This is also an important thing that must be present in a company.  Here there are parties who collaborate with your company.

They have a goal to provide support so that your company can be more optimal in terms of resources, uncertainty of competition and reduce risk.

Key Partnership will make your business run even more stable.

9. Cost Structure

The final component of the canvas business model is the Cost Structure or business financing structure.

You need to be able to explain in more detail about what costs to incur such as the cost of paying employees, telephone and others. This must be well calculated.

The 9 components mentioned above are mandatory components in the canvas business model, so they must be run as a whole.

You cannot skip just one component, because these components have roles that support one another.

Look carefully and correctly for each component, if you already understand it then you can apply the canvas business model to the business that is or will be running.

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