We are filled with business ideas. We come up with them everywhere and all the time. Some business ideas are good, while others are bad. Nevertheless, the worst thing that can happen to a business idea is burying it underneath miscommunications and misinterpretation.
The best way to explain and follow-on an idea is visualization; Put all the idea’s elements on one whiteboard and link the different elements of this idea together in a visual and easy-to-track way.
Here, the business model canvas (BMC) shines as an ultimate tool for startups and business ideas. In this article, I’ll discuss with you the BMC, its elements, and how to use it to develop business ideas and to communicate this idea with others, such as investors and incubators.
What is the Business Model Canvas?
The Business Model Canvas (from now on, we will call it BMC) is a strategic management tool to quickly and easily define and communicate a business idea or concept.
It is a visual chart with elements describing a company’s or product’s value proposition, costumers, and finances. It is a great way to align the activities and coherently structure the idea.
The BMC captures how an organization creates, delivers, and maintains value.
The left side of the canvas focuses on the business itself (internal), while the right side of the canvas focuses on the customer (external). Both internal and external factors meet around the value proposition, which is the exchange of value between your business or idea and the costumers/clients.
Why do we use BMC?
- To quickly draw and visualize an idea and what it entails.
- It allows us to get a better understanding of the business and to go through the process of making and growing an idea to a…