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
- Value proposition
- Your customer segments
- Customer relationships
- Revenue streams
- Key resources
- Key partners
- Key activities and
- Your cost structure.
Now, let’s digest each one of the elements in detail.
- 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.
- 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.
- 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.
- 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.
- 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.
- Key Resources: These are the resources your business needs to operate, like people, money, and equipment.
- Key Partners: These are the other businesses or organizations you work with to help your business run smoothly.
- Key Activities: These are the activities your business needs to do to create and deliver its value proposition.
- 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
- Ghanaian consumers
- International consumers (export market)
- Nutritious, high-quality dried fruit snacks
- Wide variety of tropical fruit options
- Convenient and portable snack option
- Direct-to-consumer sales (online store, market stalls)
- Distributors (grocery stores, convenience stores)
- 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
- Sales of dried fruit snacks
- Wholesale partnerships with distributors
- Drying equipment and facilities
- Packaging materials
- Transport for distribution
- Marketing and advertising budget
- Fruit suppliers
- Marketing and advertising agencies
- Procurement of fruit
- Drying and packaging of fruit
- Distribution to customers and partners
- Marketing and promotion
- 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.