A one page business model canvas is a simple, convenient tool you use to capture the key assumptions or hypotheses that underlie your business model. There are multiple kinds of 1 page canvas. The original one is described in the book Business Model Generation. (Download a PDF of the canvas here.) There’s even an iPad app that makes it easy and fun to work through.
The two canvases are a bit different, but both are very helpful tools for writing down a concise (one page) summary of your key assumptions. A quick overview of each is below. The following sections of the road map provide some ideas on documenting your assumptions in each of these categories – and on testing them.
The Original Business Model Canvas
- Customer Segments (and the segment you’ll choose for the first “early adopter” segment)
- Value Proposition (the “job” the customer wants done, why this has value (avoid a pain or receive a gain), your proposed solution, and how you believe your solution is differentiated from the alternatives)
- Customer Relationship (what level of relationship and support will customers expect)
- Channels (how will you market and sell)
- Revenue Streams (how will you charge for the product or service – and how much will customers pay)
- Strategic Partnerships you’ll need to develop
- Key Activities the company will need to pursue
- Key Resources the company will need to have available
- Cost Structure of the business
The Lean Canvas
- Customer Segments
- Unfair Advantage (your sustainable competitive advantage)
- Revenue Streams
- Compelling Problem or Unmet Need (and alternatives)
- Your Solution
- Key Metrics (how you will measure success in your sales process)
- Cost Structure
There is an excellent online courses about testing your business model using a 1 page Business Model Canvas:
Udacity-How to Build a Startup (by Steve Blank, uses the original canvas)
Remember – what you capture in the 1 page canvas are your beliefs. Assumptions. They all need to be tested – before you create your product or service! You’ll save yourself a lot of time and pain if you test first, code later!