How to create a Business Model Canva (BMG)
September 22, 2021
BMG Canvas is an efficient, visual and dynamic way to think and represent a company’s business model. Find out how to create your own!
What is a BMG Canvas?
The Business Model Generator, also known as Business Model Canvas, is a tool used to create and describe business plans for companies. It was created by Oscar Osterwalder, and ended up being widely used by entrepreneurs to represent their models in a concise, efficient and dynamic manner.
Building a business model is not an easy task, and explaining it to somebody else can be even more complicated. In the past, and sometimes still today, people would write pages and pages describing every detail of their business plans. But nowadays we are in a rapidly changing environment and life has a fast paced rhythm, so this type of document has become way too rigid.
The BMG Canvas has innovated in the way we represent these plans, condensing all key points of the business in just one piece of paper, in a manner that anyone can easily understand the entire structure of the company or idea. The Canva is made up of a few sessions:
Together, these categories can clearly describe a business proposal, and we are going to discuss each one of them later on.
How can a Business Model Canvas help you?
The Canva can be applied to practically any type of company. The most common application is for new ventures, but it can also be used by more established and structured companies.
For new businesses, this tool brings a variety of advantages. The most important one is flexibility. Any new venture, especially those that are trying to innovate and disrupt the market, need to validate its model. Therefore, it is likely that the idea changes a lot, so a Canvas becomes a great option: simple and dynamic, easy to alter as the business adapts and validates its hypothesis. Beyond that, when the moment arrives to look for investors, BMG is a powerful tool to show a complete picture of your idea without taking too much time.
For more established companies, the advantages of the Canvas may not seem so obvious, but it is still a very useful tool. Describing your business model in a visual manner will help you see the whole picture, which can reveal problems and improvement opportunities. In today-s competitive market, constantly improving your business modelo can help maintain your company relevant, innovative and ahead of the competition.
How to fill out a BMG Canvas?
With all the information in mind, it is time to put it all on paper! Continue reading to find out how to fill out each of the sessions:
1. Key Partners
Here you should list the most important partners of your business, whether they are suppliers, service providers, or another kind of relevant partnership. This helps you realize which companies your business relies on, so you can maintain a healthy relationship with them in the long term.
2. Key Activities
Write down all essential activities for your business. Ask yourself: which activities do we perform here and are core to the operation? There is no “one size fits all” type of answer here, since the key activities can vary depending from market to market, or even from company to company. These processes are what keep your business going, and a problem in any of them can significantly compromise the company’s wellbeing.
But be careful not to list too many activities. Learn to prioritize: if everything is important, then nothing really is.
3. Value Proposition
This is the key point of your whole business. It is the reason why you created it in the first place. Basically, you should think about what problem you are trying to solve with your product or service; what solution you are offering; and what differentiates you from your competitors. Identifying the point of difference is key, since your entire business model and investment decisions will revolve around them. For example, if you are trying to be the cheapest option, and compete with price, you should pay special attention to your cost structure. If, however, you are going for a premium product, customer relationships will be a major issue.
4. Key Resources
Now, think about everything your business needs to operate properly. It can be something physical, like property, materials or machines. Or maybe something intangible, like intellectual property. Again, the rule is to prioritize: don’t list too many resources and try to focus on those that really bring value to your company and are essential to make it work.
5. Customer Relationships
In this session, the focus is the client. Establishing a good relationship with your clients is one of the best ways to differentiate your business and stay ahead of the competition. A satisfied customer will return to buy again, and talk about your product to his or her peers. Define then how you will approach your clients, whether you are doing it digitally or not. What processes are key to establish an efficient communication and enchant customers?
Now you have already defined how you will approach your customers, so think about the channels you are going to use, not only in communications, but also to deliver your products and services to them. Are you going to create a social media profile to display your products and brand, or will you opt for more traditional marketing tools? Will you sell in physical stores or digital marketplaces? All of this should be designed with your value proposition and customer relationship goals in mind.
7. Customer Segments
When you seize a business opportunity, you must think of your target market: who is this product or service for? Some companies choose to target a niche market, with very specific characteristics. Meanwhile, others choose a mass market, which needs to appeal to diverse customer profiles. The correct segment is not always clear in the beginning of a business development, but it is important to start somewhere and invest in research to get to know your public more and more every day.
So, list here all the demographic and psychographic characteristics of your public.
8. Cost Structure
Here is where you start thinking about the feasibility of your business. Think of all the costs your operations will generate, split them in variable and fixed costs. Writing down all your costs will help you think of ways to optimize your processes and save money. For example, comparing your cost structure with the key activities and resources will show you whether you are spending your money in the right places.
9. Revenue Streams
Finally, you must think of ways to monetize your business. Companies can start with an idea, or a purpose, but in the end they all need money to sustain themselves, so they must think of ways to generate revenue from a product or service. Think of all the revenue sources you can generate, from services, products, investments, anything you can think of.
Some tips to create your BMG Canva
Now you already understand all sessions of the Business Model Canva and can start to write everything down. But, before you start, check out these tips to make the process run more smoothly:
1. Research a lot
The BMG canvas is a more visual and concise representation of your business model, but, behind all this simplicity are a variety of information and data about your company. To be able to correctly fill out every field, you must research and reflect a lot, so don’t go on trying to guess everything. Base your decisions on data.
2. Be flexible
One of the main purposes of using Canvas is to have a dynamic tool that can accompany you while your business adapts to market changes. Therefore, many people chose to fill out the sessions using sticky notes, which can be added, removed and replaced easily. In today’s digital world, there are tools that allow you to fill out a Canvas virtually, without losing all this flexibility.
In Strytegy, we have an exclusive BMG Canva Template, that you can use with digital sticky notes, without fear of losing your information. Click here to try out our Free BMG Template.
With the right tools and a lot of dedication, creating your BMG Canvas can be the first step to make that innovative idea a reality, or changing the pace of your company and getting ahead of the competition.