The entrepreneur is like a watchmaker. He must know everything and phone number in philippines be aware of as much information as possible. For this reason, models have been developed that try to simplify something that is complex.
The Canvas Model, created by Alexander Osterwalder, divides fundamental elements of the business into blocks. The exercise is to review each block separately and then ask how a change in each one affects the others. In this way, we know the characteristics of the business one by one, but maintaining the general vision.
It has four sections that answer the fundamental questions of the business and then each of the sections is subdivided to form the nine blocks that this tool has.
Next, we will briefly review each section with its respective blocks:
1) Who: This section is related to the client.
Customer segment: Who is my customer? What do they do? What are they like? We often have many different types of customers. Identifying the most important one will help you make informed decisions and optimize resources.
Channels: Once we have identified our target segment, the question arises: How do I reach them? Knowing our customers allows us to find the best way to find them, whether in terms of communication or logistics. If I know where my customer is, I can generate that contact that facilitates sales.
Customer Relations: This block refers to the ways in which potential customers are interacted with, whether in person or digitally. The tone, proximity and frequency of communication must be adjusted to the needs of the customer.
2) What: This section has only one important block.
Value proposition: This is what my client can get from my business that he won't find anywhere else, even if the other sells a similar product. The value proposition goes beyond the product and relates to the business and its characteristics.
3) How: the elements that allow the value proposition to be generated must be defined in order to transmit it and deliver it to the target segment. This section is divided into three blocks:
Key alliances: These are generally external, relevant partners for the business. They are key because if these alliances are affected, the business can be harmed. They are often raw material suppliers or shipping companies.
Key actions: What must be done for the business to function properly. If any of these key actions are not done correctly, there is a risk of customer dissatisfaction.
Key resources: These are the elements necessary for the proper functioning of the business, allowing for the correct development of the product and the completion of sales.
4) How much: This section is divided into two blocks and reviews the financial aspects of the business.
Income: Here you need to take into account all the sources of income for the business and their characteristics. If, for example, you work by asking for 50% in advance and 50% upon delivery, this should be reflected in your income.
Costs: Knowing each and every one of the business costs in detail. This way, you can identify those that can be reduced and distinguish them from the essential ones.
Creating a Canvas Model helps to separate these elements without losing sight of their connections. This facilitates decision-making and analysis of the company. It also helps to have clarity of the business model in order to study the impact that external variables, such as a pandemic, can have.