1. Before You Start
⊗ Get the right team of 3-5 people together
⊗ Grab a large chunk of wall space
⊗ Print or draw the canvas on a big sheet of paper
⊗ Have plenty of sticky notes and markers ready
⊗ Allow yourself 45-60 minutes of undisturbed time
2. High Level
Start by mapping out the business on a high level: only the most important, vital aspects of the business model.
TIP! Try to make your criteria as clear as possible, so that you and others will still understand what they mean in three months time. Split up more complex design criteria.
3. Connect Building Blocks
Link up the building blocks: every value proposition needs a customer segment and a revenue stream! When everything is on the board, take a step back. Have a short break. Did you miss anything? Forget something?
Tip! If you have multiple customer segments it is best to pick a colour for each segment in the post-it notes you use. That way you easily see if for each segment there is a value proposition and a revenue stream.
4. Current State
Don’t mix ideas for a future state with what is going on right now, and don’t mix different departments!
Tip! If you work for a large organisation you might find varying value propositions and business models. In that case, ask the different departments to map out their own business models. You can compare them afterwards.
Take a step back check if every customer segment is linked to a value proposition and a revenue stream. Make sure everything on the left side of the canvas is needed to support the right side of the canvas. Everything else can go.
Rank your business model’s performance (0:bad, 10:excellent) for each of the following questions:
⊗ How scalable is your business model?
⊗ Does your business model produce recurring revenues?
⊗ Do you earn before you spend?
⊗ How much of the work can be done by others?
⊗ Does your business model provide the most efficient way for you to run your organisation?
⊗ On what cost structure is your business model based?
6. Next Steps
Tip! Have a graphic artist visualise your business model. It helps to create an impact when sharing the model and it makes it easier for others to become connected.
⊗ Take a snapshot picture of your business model canvas for easy to share future reference
⊗ Ask team-members to discuss the business model with others
⊗ Trigger team-members to actively look for 1-2 blind spots
⊗ Filter out the design criteria
⊗ Test your assumptions
The business model canvas is a shared language for describing, visualizing, assessing and changing business models. It describes the rationale of how an organization creates, delivers and captures value.
This is an iterative process, give it a go, practice, share it, talk about it!