If you’ve decided to start a business, but you’re wondering how to develop your business idea is best for you then you are in the right place because, in this post, I will walk you through the process to develop a simple business plan using a Business Model Canvas.

In this post, we will be looking at a simple 1-page business plan called a business model canvas.  

I’ll briefly walk you through what the business model canvas is and then we will look at the business model canvas of a fictional company that I set up to help you understand it better and develop your own. 

Now, let us dig in!

Business model canvas

The Business Model Canvas is a tool that helps you visualize and think about 9 key elements of your business. These elements are as follows

• 1. Value proposition
  2. Your customer segments
  3. Channels
  4. Customer relationships
  5. Revenue streams
  6. Key resources
  7. Key partners
  8. Key activities and 
  9. Your cost structure.

Now, let’s digest each one of the elements in detail.

1. Value Proposition: This makes your business unique and what you offer to your customers. It’s what your business does differently from other businesses and why customers should choose your business.
2. Customer Segments: This is who your business is trying to sell to. It’s important to understand your different customer groups and what they need.
3. Channels: These are the ways you reach your customers and deliver your value proposition to them. This could be through online channels like a website or more traditional channels like a store.
4. Customer Relationships: This is how your business builds and maintains relationships with its customers. This could be through customer service or by offering personalized experiences.
5. Revenue Streams: This is how your business makes money. This could be through selling products or services, or through other sources like advertising or subscriptions.
6. Key Resources: These are the resources your business needs to operate, like people, money, and equipment.
7. Key Partners: These are the other businesses or organizations you work with to help your business run smoothly.
8. Key Activities: These are the activities your business needs to do to create and deliver its value proposition.
9. Cost structure: These are the costs that your businesses incurs in delivering products and services

Example Business Model Canvas

Let us take a look at the business model canvas of a fictional company that I came up with called Tropical Treats.

Tropical Treats is a fictional Ghanaian dried fruit company that makes nutritious, high-quality dried fruit snacks for both the Ghanaian and export market. 

Here’s how Tropical Treat’s business model canvas looks like

Customer Segments:

• Ghanaian consumers
• International consumers (export market)

Value Proposition:

• Nutritious, high-quality dried fruit snacks
• Wide variety of tropical fruit options
• Convenient and portable snack option

Channels:

• Direct-to-consumer sales (online store, market stalls)
• Distributors (grocery stores, convenience stores)

Customer Relationships:

• Build brand loyalty through consistent product quality and customer service
• Offer promotions and discounts to encourage repeat purchases
• Engage with customers through social media and email marketing

Revenue Streams:

• Sales of dried fruit snacks
• Wholesale partnerships with distributors

Key Resources:

• Drying equipment and facilities
• Packaging materials
• Transport for distribution
• Marketing and advertising budget

Key Partners:

• Fruit suppliers
• Distributors
• Marketing and advertising agencies

Key Activities:

• Procurement of fruit
• Drying and packaging of fruit
• Distribution to customers and partners
• Marketing and promotion

Cost Structure:

• Fruit procurement
• Drying and packaging costs
• Distribution and logistics costs
• Marketing and advertising expenses
• General overhead expenses (rent, utilities, etc.)

So that’s how to develop a 1 page business plan using the business model canvas.

I will leave a link to the template I used so that you can download it and create a business model canvas for your own idea.

And if you enjoyed this post, leave a comment and share the post with anyone you believe this will be helpful to. 

This post is part of my Business Essentials series, which is a whole course for people looking to launch their businesses. You can join my community to be alerted each time a post is made.

So take care and catch you another time.