Do you know what the Canvas Model is? With the boom of entrepreneurs that are taking place in Spain, Canvas has become one of the most used resources when it comes to developing business ideas.
What is the Canvas Model
This model represents the steps you can follow in nine simple blocks to achieve your company’s success. This methodology was developed by Alexander Osterwalder, a Swiss consultant who proposed this model through his thesis in 2004.
Customer Segmentation
One of the first decisions when starting a business is to establish what type of audience we want to target clearly. Once that has been made clear, the next step will be to group customers into different segments based on their characteristics.
In this way, we will be able to differentiate the evolution of those people with similar profiles and their relationship with our product over time. This will allow us to know which groups to influence, which business model we can target, or even what type of people to separate from our objective as we do not consider them profitable.
Value Propositions
What does my product offer my customers? This question is one of the most important since you can ask it yourself before the end user asks it and provide an answer.
In this way, you will know which point to influence depending on the profile interested in your offer and offer them the most suitable products, highlighting their advantages and facilitating the final conversion.
The objective is to establish the value for each customer segment we have established in the previous point, adjusting the strategies to this maxim. You can also associate a perfect product/service for each group, which will streamline all recruitment processes and improve purchases.
Channels
How do I reach consumers? Different channels are depending on the phase in which we find ourselves. We must consider how we are going to contact our customers at the time of the information, the evaluation of the proposal, the purchase, the delivery of the product or service, and during a period after the sale, which may be critical for them to buy again or to evaluate our business positively.
Relationship with the Client
What kind of relationship do I establish with them? This point is one of the most complex and, simultaneously, one of the most critical moments since the result will be rejection or approval by our public.
The type of relationship depends on different variables, such as the type of job profile, age, the investment you will have to make to get our product, and the type of company you want to share. Take your time establishing it since a continuous change in this strategy can generate random results and, therefore, be challenging to analyze.
Sources of Income
How am I going to generate profits? Once we have established who our customers are, through which channels we will interact, and how we will do it, we must consider how we will receive income.
We can opt for a freemium model, for example, something currently in fashion, and offer our service for free with exclusive paid features. This is the case with numerous mobile Apps, for example, Spotify, which has recently extended its free service to Smartphones and tablets.
Key Resources
It is essential to know what kind of resources we need to offer our products or services to consumers and the quantity and intensity of each.
Key Activities
What activities must we do to produce, sell and deliver our product? (production, marketing, distribution) Here we will specify the previous ideas, turning the strategic part into a tactic.
Key Partnerships/Alliances
The partnerships you establish will be the foundation of your success. Today, when discussing entrepreneurs, collaborating becomes essential to achieve our goals.
You can collaborate on ideas, processes, sales, and social responsibility. All associations are welcome. Did you know that recently, the walls of some establishments are beginning to be rented to reduce the costs of each company?
Cost Structure
Uniting it with the latest curiosity, remember to detail the costs necessary to develop your business idea as much as possible. Know the costs to optimize them and review them based on the evolution of your company.
You may find that, once you have grown, there are costs that you can “escalate” to achieve more significant benefits. For example: if at the beginning you had motorcycles to deliver your orders at home and you considerably increased your reach, you can consider buying vans and save time, money, and the efficiency of your deliveries.
You will learn this model and much more in our Master’s program in Digital Business Management.
