Wednesday, September 27

Fail to Innovate the Venture? Try Business Model Canvas Tool

Running a business is not that simple. You have to do a lot of paperwork and planning to innovate it. If you fail to manage things properly, then you may not stand in this cut-throat competition. If you want to achieve success, then you have to move every part of the business in one direction.

Sometimes writing a business plan takes more than a week. And you cannot run from it because without a clear vision of your business model, you will never identify what your company wants. Sometimes creating a large plan may bother or demoralize you.

If you want to optimize your business without worrying about this problem, then the BUSINESS MODEL CANVAS is here for you. This tool is a revolutionary technique to structure your business model on one page wherein the traditional method people use more than thirty pages

It not only reduces the work but business owners or employees can easily track their growth and can easily manage the whole procedure.

You may not have any idea about this ‘CANVAS’. Want to know more about it? We have discussed everything such as, what is business model canvas? Why it is important? How to construct it? And many other basic questions.Without spending any more minutes let’s initiate the process… 


What is the business model canvas? 

It is basically a management tool, which can help you to describe the design, chart, invent into your business model.

With the help of this tool, you can break the plan into different segments, each one of these includes the below-mentioned points:

1.Important partners

2- Key activities 

3- Key resources

4- Value proposition

5- Customer bond

6- Channels

7- Customer segment

8- Cost structure

9- Returns streams

You can see it is divided into nine different parts. In this way, you can easily manage the work. And the major benefit you will receive from that you can track the problems and rectify it. If you are doing a start-up, then this tool is the best choice for you.

It may happen that you are already managing things in a tight budget but you can break your savings or you can ask for help from investors. Or you can borrow money from direct lenders in the UK that offer various loans to people even with a very bad credit score.

Once you decide, and then don’t let money to resist you. Remember that it is ONE TIME INVESTMENT and you can leverage the benefit for the long term.

How to build an effective business model canvas?

1- Define your audience

Many businesses fail because they fail to identify the target audience. Suppose, you start a business of gym equipment, then you cannot sell them to an old man or who is not interested in the gym. It may seem stupid but the customer should be top on the list.

Track what your customers’ want and provide service according to their needs. In this segment, you will find the customer who is interested in your product and who is not. You can save a lot of time because you are spending your time on genuine buyers.

2- What makes you different 

This one is challenging but you have to identify the qualities you have. If you are selling the clothes, then what special facility you are providing to your customers that other competitors don’t. In this part, you can write and recognize your qualities.

3- Things before delivery

Selling a product is not that easy. There are a few steps you have to follow, we have mentioned all those necessary steps below:

Advertisement: It is very important to create awareness of your product among consumers. Without knowing that you exist, no one will buy any product from you.

Test your product: Before providing stuff to the customer. You must evaluate it if you think that it requires some basic modification, and then go for it.

Permit customers to use your service: In this, you have to provide different methods through which consumers can easily buy your product. It would be better if you start an application through which they can easily grab your service and product.

Fast delivery: It is very important to fast the service. Because customers hate those companies who delay their service.

Support: Provide 24 by 7 support to the customer so that they can happy with your service. And become a permanent buyer.

4- Describe your revenue model

In this block, try to gather information related to revenue. It means the sources from where you are making a profit or generate money.

5- Detect your key resources

It is very important to detect what resources you are using. It may be physical or software. Mention all your important resources in this segment. In this contrast, you can easily focus on your crucial resources.

6- Important activities

Track the activities which can help you to run a business. It may be production activity or network activities. This will facilitate you to easily notice if any fault will happen.

7- Partnership 

Running a business without a partner may seem impossible. But that partner should be legitimate. In this block all, you have to mention the qualities a partner should have. And during the selection, you can easily recognize who is the perfect candidate for you.

8- Track cost 

Without cost, you will never able to run a business. It is very important to find both fix and variable costs. If you think you reduce cost somewhere, then cut it.

You can see how this tool makes your work easy as far as possible. All you have to divide the work and track the individual work instead of all together. In this way, you can easily manage the different tasks without messing them up. Business model canvas is the best tool not only for the start-up but for big organization too. Though, it is very effective for new business, because the major reason behind failure is POOR WORK MANAGEMENT.

Article written by scarletmartin.

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