On this page you can read about the Business Model Canvas. I chose this model because its widely used across the world and proved to be effective for many businesses, and also pretty easy to understand and explore as a beginning entrepreneur. I found out what the model is, how it works and how I can apply it to my own business. In my research I interviewed different AV freelancers to find out what their business plan is, and applied the Business Model Canvas to their situation. Here you can find the recordings of the interviews with different AV freelancers and the notes I made per freelancer. And by clicking here you will navigate to my conclusions of the freelancer’s business models after analysing the interview results.
Below you can find a short description of the Business Model Canvas itself.
The business model canvas is a model designed by Alex Osterwalder that helps to set up a structure of for a business plan. This model can be used by any size of business, from multinational mega companies to one-person start-ups like my own company. (Ik Ga Starten, n.d.)
The power of this business model is its’ simplicity and clarity. Where you would normally maybe be used to writing a 20-page business plan filled with every detail you could possibly imagine, this business plan sticks to a one-page format that focuses on keeping your entire plan clear and adjustable. This makes it a lot easier and achievable to keep your business plan up to date as your company grows and evolves, as you can easily modify the plan each time something major changes in your business structure. (Youtube, 2015)
More generally, like all business models, this model will give a good overview of where the revenue and costs will be in a company, and also gives a bit of an overview and description of the company itself. The model is structured in 9 empty blocks that are all in relationship with each other. The point of this model is to fill in these blocks by answering the questions that come with the accompanying building block. Although there is a preferred order for filling in the blocks, you can start anywhere you think is best. Once you’ve filled in all of the blocks, you should have a clear overview of how you will run your business for the time being. You can get an empty template of the model online and print it out, draw it on a whiteboard, or use online tools that allow you to fill it in and keep track of the changes you made along the way. An example of such a tool can be found on www.canvanizer.com (Youtube, 2015)
There are more versions of the canvas model available, with ‘the lean canvas model’ being the most known and used alternative version. But as I’ve stated in the scope of my implementation plan I will only focus my research on the canvas model without any alterations to refrain from researching too extensively within the given period of time.
The 9 building blocks mentioned earlier are described as following:
What product or service are you selling?
What problem are you solving?
What need are you fulfilling?
Who are your customers?
Why would they buy?
How does the typical persona look like?
How does the product get to the customer?
How do you get customers?
How do you keep the customers?
How do you grow the customers?
How do you make money from each customer?
What strategy are you using to sell product/service?
What is the pricing you are using for your products/services?
What are the most important assets for you business to keep running?
What resources are you acquiring from each partner?
What activities are your partners going to perform?
What are the most important things you need to do for your business to keep running?
What are the costs to operate your business model (for activities, partners, and resources)?
Most important costs
Most expensive resources
Most expensive activities
What are the fixed costs?
What are variable costs?