Business Model Canvas

Business Model Canvas Template (BMC)

Entrepreneurs and companies need tools to plan, analyze and optimize their strategies. One of those tools is the Business Model Canvas (BMC), a visual tool for business model generation and optimization. This article is a continuation of our BMC planner to explain what the BMC is, its benefits and potential, and how to use it.

What is the Business Model Canvas template? 

The Business Model Canvas is one of the strategic marketing templates to visualize, design, and pivot your business model, whether you’re a startup or a seasoned business with many devoted clients. It is a tool for business model generation, simplifying the creation and testing of business ideas. 

Created by Alex Osterwalder and Yves Pigneur, this template gives you an overview of your business on one page, allowing you to look at everything important for decision-making at once. Imagine standing on a rock and admiring your land beneath it. BMC gives exactly this opportunity.

It has 9 blocks covering all the essential elements of a business model (a bit more on each below). Offering a very basic structure doesn’t eliminate any aspects of your business; quite the opposite, it makes your life easier, which is especially important when you don’t have a huge team that takes care of analyzing data, trends, planning, etc.

Benefits of creating a Business Model Canvas online

Business model canvas template offers many benefits, but you can multiply them by doing it online. A digital tool to build your new business models allows you to be strategically flexible.

Fast

Online Business Model Canvas tools are quick to create and iterate. You can input ideas, edit elements, and update your canvas as your business model changes. No need to start all over again when you need to delete or add something.

Speed is key for startups and businesses in fast-moving markets. Digital tools eliminate the need for physical materials and allow instant changes, reducing the time it takes to develop and refine your business model to withstand new challenges, open new channels, and make cost-efficient decisions.

​​Structure

Online Business Model Canvas templates give you a clear pre-defined structure to ensure you cover all the essential parts of your business model. These digital templates are based on the original 9 building blocks developed by Alex Osterwalder: customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships and cost structure. 

This structured approach helps you think through each element of your business model systematically, reducing the risk of missing out on critical parts.

Ability to work with a team

Online Business Model Canvas platforms are great for collaboration. Team members can work on the canvas at the same time, no matter where they are in the world. This is especially useful for distributed teams or when involving external stakeholders. 

Collaborative online tools allow real-time editing, commenting, and idea sharing, enhancing your brainstorming sessions and allowing diverse perspectives to contribute to the business model development process. Additionally, many editors can work together without fear of ruining the layout, as digital BMC templates are flexible and fully customizable.

This collaboration can lead to more robust, well-thought-out business models that benefit from collective expertise and insights.

Which businesses are suitable for a Business Canvas Model (BMC) template? 

The Business Model Canvas template is a versatile tool for businesses at any stage, from startups to well-known companies, to become/stay competitive and innovative in their market. 

Businesses can use the BMC to:

1. Identify key partnerships and customer relationships

2. Analyse cost structure and operations

3. Align value proposition to customer segments

4. Get new distribution channels and revenue streams

5. Enhance innovation and strategic thinking

Generally speaking, a free Business Model Canvas template is one of the easiest tools in strategic management available even to people with no previous experience to build a working strategy for developing the company.

Startups

Startups can test and refine different types of business models using the Business Model Canvas template, gather feedback from the market, and quickly and organically implement it into their business strategy.

The structured approach helps founders clarify many aspects of their new enterprise. They can use it to estimate their value proposition and target market. They can identify key resources and activities essential for resource and strategic management using a BMC. Additionally, new ventures can explore different revenue models early on.

Finally, the BMC may become a summary of the business model for pitching to investors or finding key partners. Due to its concise structure, it won’t bore your potential investors with unnecessary details while providing them with the data they need to make a decision.

Established businesses

Companies can use a Business Canvas Model template to find new opportunities or refresh existing business models. The template will also help visualize your current business model and identify areas to improve. It will show whether you lack some services your competitors offer and customers seek, slightly change your value proposition to be more attractive for your target market, etc.

A BMC is a shared language and framework for different departments to talk about strategy. That is how you can ensure your employees understand your goal.

Business Model Canvas template key elements and key resources

In his book Business Model Ontology, Alexander Osterwalder offers these key elements of a Business Canvas Model Canvas:

1. Customer Segments – the most important customers your business aims to serve

2. Value Propositions – the unique value your business provides to customers

3. Channels – how you will deliver your value propositions to your customers

4. Customer Relationships – relationships with customer segments

5. Revenue Streams – how customer segments will contribute to your overall revenue stream

6. Key Resources – the most important assets required to make your business model work

7. Key Activities – the most important actions your company must take to operate successfully

8. Key Partners – a network of suppliers and partners that make your business model work

9. Cost Structure – all costs incurred to operate your business model

These 9 elements help businesses to provide a comprehensive overview of their operations, value creation, and revenue generation processes. This structured approach helps entrepreneurs and managers visualize, analyze, and optimize their business strategies effectively. 

When used online, BMC helps with these tasks without piles of paperwork, sticky notes attached to every surface in the office, and hours spent on organizing the information in an easy-to-read way.

How to use a Business Model Canvas template by xTiles

1. Start with the xTiles Business Model Canvas template. It is customizable and flexible, eliminating the risk of messing up the layout. All you need to do is click on the “Use a free template” button, and it will be added to your workspace.

2. Get familiar with the structure. The xTiles BMC template follows the standard 9-block structure of the Business Model Canvas. Take a minute to read each section. We offer you an example of our Business Model Canvas so you can better understand what type of data to put into each section.

3. Prepare your info. Before you start filling in the template, gather all the info about your business model. This will make it much faster.

4. Fill in each block. Work through each of the 9 blocks, inputting your business’s details.

• Key partners: Who will help you to promote/develop your business? Determine the network of suppliers and partners that make your business model work.

• Key activities: What are the most important activities (steps) for your business right now in order to reach your main goal? These activities are crucial to deliver your value proposition.

• Key resources: What do you have at your disposal to reach your goal? These resources enable you to create and deliver your value proposition.

• Value proposition: What is so special about your business? What can you offer your customers your competitors don’t have? This is the core reason why customers choose your product or service over competitors.

• Customer relationships: What type of relationships do you have with your customers? It’s important to establish and maintain relationships with all customer segments. This can range from personal assistance to automated services.

• Channels: What channels are you planning to use to deliver your product to customers and achieve success? This includes communication, distribution, and sales channels.

• Customer segments: Who are your most important customers right now? Focus on understanding their needs and behaviors to tailor your offerings effectively. Every customer segment is important, however, when trying to satisfy everyone, you risk to frustrate everyone. So, be very careful when deciding on your target market.

• Cost structure: What are the main costs in your business model? This helps you understand the financial implications of your strategy.

• Revenue streams: What portion of your total income is generated by each distinct group of customers? Consider various pricing mechanisms and payment structures to be flexible when a customer is wondering whether they are ready to spend money on your service or product. Remember, each revenue stream contributes to overall revenues.

5. Customize as you like. Use xTiles customization options to make your BMC look good and easy to read. You can add new sections if needed, but if you need space for brainstorming, you can add a new page to keep all the data there while keeping your BMC neat and clear.

6. Share with your team. xTiles allows for easy collaboration. Invite team members to add their thoughts and ideas.

7. Review and update. Remember your BMC is not a static document. Review and update it as your business changes or faces new challenges. This is the only way to be always a few steps ahead of your competitors.

8. Share with others. xTiles makes it easy to share your completed BMC with stakeholders, investors, or anyone who needs to understand your business model. You can grant them the needed level of access if you don’t want to allow some people to edit your BMC document.

9. Use with your business plan. While the BMC is a quick overview, it’s not a replacement for a full business plan.Use both together for a complete business strategy. Also, it’s important to develop both of them together. Missing one part of this system might lead to lower revenue streams, decreased number of customers, etc.

10. Use in strategy meetings. Use your xTiles BMC as a visual aid in strategy meetings, brainstorming sessions, or when explaining your business model to others. 

The Business Model Canvas template from xTiles is a lean and effective tool for gathering the most important insights into your business strategy. Use it whether you need to rethink your plans, attract new customers, or attract investors. 

An actual business plan is a large document that can be quite complicated to use whenever you need to check something. That’s why businesses need a MBC to make fast decisions when the situation requires them to stay on top.