The Business Model Canvas is a strategic management tool, which allows you to develop and sketch out new or existing business models. It is a visual template pre-formatted with the nine blocks of a business model.

The nine blocks include:

Key Activities: The activities necessary to execute a company’s business model.
Key Resources: The resources that are necessary to create value for the customer.
Partner Network: The business alliances which complement other aspects of the business model.
Value Proposition: The products and services a business offers.
Customer Segments: The target audience for a business’ products and services.
Channels: The means by which a company delivers products and services to customers.
Customer Relationship: The links a company establishes between itself and its different customer segments.
Cost Structure: The monetary consequences of the means employed in the business model.
Revenue Streams: The way a company makes money through a variety of revenue flows.

The Business Model Canvas can be printed out on a large surface so groups of people can jointly start sketching and discussing business model elements with post-it note notes or board markers. It is a hands-on tool that fosters understanding, discussion, creativity, and analysis.

The Business Model Canvas Diagram (Click to enlarge)

Thinking about starting or growing your own business?  Our business and productivity books address the diverse challenges at all stages of business. Preview all our books on Amazon.

Founder @Alltopstartups. Blogger. Entrepreneur. Author. Contributor at Entrepreneur Magazine. Curator at Postanly (a free weekly newsletter that delivers the most insightful long-form posts from top publishers)