Do you want to start a business but don’t know where to begin? Have you just embarked on a business and there is something that doesn’t work?
A key element when it comes to setting up a business is to obtain a general view together with a very detailed view of same, thereby monetizing the business idea from a clear perspective. Useful for this aspect is making use of the Canvas business model designed by the Swiss Alexander Osterwalder. This model is divided into nine chapters whereby each of them analyses different aspects at a glance.
- Market segmentation: which defines the different groups of people for whom we are creating value and service. In this section we must include clients who all have the same characteristics, describe their needs, obtain information about them that may be of use to use, for example their geographical location.
- Value proposition: in this chapter we must ask ourselves what value proposition we are delivering to our clients, whether it fulfils their needs; whether we are helping to resolve their problems. The values created for a specific segment of clients can be quantitative or qualitative and are for example creating a brand, reducing costs and risks, innovation, price, design, etc. This chapter deals with the two most important parts of any business model.
- Channels: subsequently we must define a distribution channel adequate for each of the services identified in the previous step; in other words, define the manner in which the company will communicate with the client and the delivery of the value proposition. The channel has various stages amongst which are: awareness, evaluation, purchase, delivery and after-sales service.
- Customer relations: this chapter evaluates the type of relationship we can establish and the one we have already established with each and every one of our client segments, and analyzes whether it is an expensive type of relationship or how it integrates into the rest of our business model.
- Source of income: constitutes the cashflow of a company. In this section we would analyse the amount our clients are willing to pay for our service, as well as the payment method or the amount that each source of income contributes to the general income. Likewise, we must also analyse the different forms or possibilities our business has of generating income with subscriptions, licences or advertising.
- Key activities: at this point it would be worth analysing the parts of the process that are key to ensuring the desired success of your company. For Osterwalder, the key activities are the most important for the business model to work. On the basis of the activities of production, solution of problems and platform or network we must once again review the channels, the relationships we have with out clients, or the sources of income.
- Key resources: according to Osterwalder, the key resources are those which enable a company to create and provide a value proposition. In relation to this point, it would be worth asking oneself what resources (physical, intellectual, human and financial) are key to the success of our business.
- Key partners: to complete the structure of our business model it would be important to highlight key partners and suppliers as well as the resources we acquire through same; establish the shape of the organisation of partners, etc.
- Cost structure: in this section we evaluate which are the most significant costs in our business model and it is advisable to ask ourselves which are the most costly resources or activities. To carry out this analysis there are four types of costs: fixed costs (they are always the same, such as salaries, rent, etc), variable costs (which depend on the amount of goods or services provided), economy of scale and economy of scope