Having a clear and effective strategy is essential to ensure the success of any business. One of the most widely used methods for structuring and visualising a business model in a simple way is the Canvas business model.
This tool allows entrepreneurs and companies to identify and analyse the key elements that make up their business model, facilitating strategic decision-making.
In this article, we will explore what the Canvas business model is, how it can be applied to different types of companies and how Ibercenter, a specialist in flexible office and coworking space rental, can help implement efficient solutions to maximise business performance, as well as giving you the option to download the Canvas business model template.
What is the Canvas Business Model?
The Business Model Canvas, or Canvas business model, was developed by Alexander Osterwalder who, together with Ives Pigneur, and based on this instrument, also created the book Business Model Generation, which has become a worldwide bestseller.
The Business Model Canvas is a visual tool that allows to describe, design and analyse business models in a simple and structured way. It consists of nine key blocks, which represent the fundamental aspects of a company:
- Value proposition
- Customer segments
- Distribution channels
- Customer relationships
- Sources of revenue
- Key resources
- Key activities
- Key partners
- Cost structure
These blocks help to visualise the structure of the business in an integrated way and allow us to analyse its viability and areas for improvement. We will now go into detail on each of the key aspects.
Value proposition: differentiate yourself from the competition.
The value proposition defines what makes your business unique and why customers should choose you. It is about the problem you solve and the benefit you deliver to your customers.
Example: A software company offers a financial management platform with artificial intelligence that helps small businesses automate their accounting processes and reduce human error.
Key questions and example of possible answers:
- What needs is your company solving?
- Simplify accounting and reduce the operational burden for small businesses.
- What are the features that make your product or service special?
- Use of artificial intelligence, automation and cloud access.
Customer segments: know who you serve
Defining your ideal customer is crucial to design effective strategies. Are you targeting startups, SMEs or large corporations?
Example: A marketplace for eco-friendly products targets environmentally conscious consumers and companies that want to adopt sustainable policies.
Key questions and example of a possible answer:
- What is the profile of your ideal customer?
- Young, environmentally conscious individuals between 25 and 40 years old.
- What are their needs and preferences?
- Plastic-free, organic and environmentally certified products.
Distribution channels: reaching your customers efficiently
Channels are the means through which you deliver your value proposition. They can be physical or digital, direct or indirect.
Example: A sustainable fashion company sells its products through its online shop and social media.
Key questions and example of possible answers:
- How do your customers reach your product or service?
- Through the online shop, social media campaigns and pop-up stores at green events.
- Which channels do they prefer to use?
- Online shopping with fast shipping and WhatsApp support.
Customer relationships: strengthen your connection with customers
The way your company interacts with customers influences their loyalty and perception.
Example: A digital marketing consultancy service offers personalised support with consultants assigned to each client.
Key questions and example of a possible answer:
- How do you manage your relationship with your customers?
- Through personalised consultancy and a 24/7 chat system.
- Do you use automation, personalised support or a combination of both?
- Automated mailings are combined with one-to-one meetings.
Revenue streams: maximise your profitability
Revenue streams represent how you generate money from your value proposition.
Example: An online academy of programming courses generates revenue through monthly subscriptions and the sale of individual courses.
Key questions and example of a possible answer:
- What are your main sources of revenue?
- Subscriptions, premium memberships and individual courses.
- Could you diversify or add new sources of income?
- Sales of certifications and live events.
Key resources: optimise your business assets
Key resources are the assets necessary for your business model to function properly.
Example: A healthy food delivery service needs delivery vehicles and a network of allied restaurants.
Key questions and example of possible answers:
- What resources are critical to the operation of your business?
- Mobile app, delivery staff and order management software.
- Which of these resources could you outsource or improve?
- Outsource the delivery fleet to logistics partners.
Key activities: focus on what is important
The core activities of your business should focus on generating value and optimising processes.
Example: An online education platform should develop quality content and improve its teaching technology.
Key questions and example of possible answers:
- What are the most important tasks for the success of your business?
- Content creation, platform development and marketing strategies.
- Can you automate or delegate any of these activities?
- Delegate course creation to experts in different areas.
Key partners: create strategic alliances
Having the right partners can boost your business and open new opportunities.
Example: A fintech that offers online loans collaborates with banks and insurers.
Key questions and example of possible answers:
- What strategic alliances could you establish to enhance your business?
- Partnerships with financial institutions to enhance credibility.
- How can your key partners help you grow?
- By offering better rates and access to customer networks.
Cost structure: reduce expenses and increase profitability
Managing costs efficiently is fundamental to the profitability of any business.
Example: A software company minimises costs by working with remote teams.
Key questions and example of possible answers:
- What are the fixed and variable costs of your business?
- Cloud servers, salaries and advertising.
- Can you reduce costs without affecting the quality of your product or service?
- Optimise servers and use organic marketing.
What is the Canvas business model for?
The Canvas business model has multiple applications that benefit both start-ups and established organisations. Some of its main utilities include:
- Defining a solid business model: It allows ideas to be structured in a clear and understandable way.
- Detecting opportunities for improvement: Identifies areas in need of optimisation or innovation.
- Align work teams: Facilitates internal communication about the company’s strategy.
- Compare different strategies: Can be used to analyse different alternatives before making key decisions.
- Facilitate investment attraction: A well-defined model helps to convince investors and strategic partners.
How to make a Canvas business model?
The Canvas business model methodology allows us to design and manage business models by visually and clearly outlining the different elements that make companies generate revenue.
The different modules of the Canvas business model cover fundamental areas of a company:
- Clients.
- Supply.
- Infrastructure.
- Economic viability.
- Economic viability.
The life of the business is guaranteed if it is economically viable, which is why all the elements are analysed.
It is important to draw up a budget that includes the income expected to be obtained and the costs and expenses that need to be incurred.
The fundamental idea of this tool is to ground the idea of a business, using a language understandable to all, which can be modified at any time, adjusting it to the circumstances and results obtained in the different phases of its application.
The business model canvas is divided into two segments that allow it to be filled in, analysed and evaluated.
Making an analogy with the cerebral hemispheres, in which the right side comprises the information related to emotions; if we look at the model, this area refers to the value it offers to its customers.
The left side of the brain is related to logic and in the business model canvas, the left side refers to the area that enables efficiency in processes and systems.
We start applying this tool from the right-hand side, in the following order:
- Market segment.
- Value proposition.
- Channels.
- Customer relations.
- Sources of income.
Then we move to the left side, following the next steps:
- Key resources.
- Key activities.
- Key partnerships.
- Cost structure.
In any case, work each side of the canvas in the way that makes the most sense and makes the most sense to you.
Here we leave the Canvas business model template for you to download and apply it to your business, just leave us your name and email to get it!
DOWNLOAD HERE THE BUSINESS MODEL CANVAS
How to apply the Canvas business model in different companies
The flexibility of the Canvas business model allows it to be adapted to a variety of industries. Below, we explore how different types of companies can use this tool effectively.
- Startups and technology companies
For startups and technology companies, speed of decision making is key. Using the Canvas business model allows them to validate their business idea, define their target market and adjust their value proposition based on market feedback.
Tip: Implement trial and error cycles (Lean Startup method) to improve the value proposition and adapt to customer needs.
- Traditional businesses
Companies with more traditional models, such as retail or manufacturing, can use the Canvas business model to analyse their cost structure, improve the efficiency of their distribution channels and strengthen their customer relationships.
Tip: Evaluate operating costs and look for strategies to optimise processes through automation or outsourcing.
- Service companies and coworking
Service companies, such as coworking spaces and flexible serviced offices, can benefit greatly from the Canvas business model by improving their value proposition and expanding their network of strategic partners.
Tip: Analyse the needs of companies renting space and tailor services to provide them with more added value, such as equipped meeting rooms, coffee breaks and networking.
Ibercenter: a strategic ally for business optimisation
For any company, having a suitable and flexible working environment can make all the difference in terms of productivity and growth. Ibercenter offers innovative solutions for companies looking to optimise their resources by renting flexible equipped offices, coworking, meeting room rental, training and events, and additional services such as catering and coffee break.
How can Ibercenter boost your business?
- Cost optimisation: Renting a flexible space at Ibercenter allows you to reduce operating costs without sacrificing professionalism.
- Strategic locations: Ibercenter offers offices in central and well-connected areas, located in Azca, Gran Vía and Velázquez, ideal for meetings and business events.
- Personalised services: From meeting and training rooms to event spaces, Ibercenter adapts its solutions to the needs of each company.
- Professional atmosphere and networking: Coworking spaces encourage collaboration and the generation of business opportunities.
Conclusion
The Canvas business model is a powerful tool that allows structuring and improving any business model in a visual and simple way. Its application in different industries helps to define clear strategies, improve the value proposition and optimise resources.
For companies looking for flexibility and efficiency in their operations, Ibercenter is positioned as a key ally, offering the rental of workspaces adapted to the needs of each business and the rental of meeting, training and event rooms. Whether through flexible offices, meeting rooms or complementary services, Ibercenter helps to maximise productivity and business growth.
If you are looking for a smart solution for your company, discover everything Ibercenter has to offer and take your business to the next level.
