The Business Model Canvas (BMC) is a powerful strategic tool that visually maps out the core elements of a business. Originally developed by Alexander Osterwalder, it provides a snapshot of how a company creates, delivers, and captures value—all on a single page.
The canvas is divided into nine building blocks:
- Customer Segments
- Value Propositions
- Channels
- Customer Relationships
- Revenue Streams
- Key Resources
- Key Activities
- Key Partnerships
- Cost Structure
Using the BMC in practice starts with the value proposition—what makes your product or service valuable to your audience? From there, define customer segments: who are your primary users or clients, and how do their needs differ?
Next, outline your channels—how you reach customers—and the relationship strategies you’ll use to retain them. For example, do you offer personal support, automated service, or a self-service model?
The revenue streams block answers the question: how does your business make money? This could include direct sales, subscriptions, freemium models, or licensing fees.
On the operational side, determine your key resources, activities, and partnerships—all essential to delivering your value proposition. And finally, calculate your cost structure to understand where money is spent.
The strength of the BMC lies in its flexibility and simplicity. It can be used during ideation, pivoting, investor presentations, or team alignment. Unlike a traditional business plan, it’s designed to be dynamic, evolving as your business grows.