Business Model Canvas
Design and analyze business models using Osterwalder's Business Model Canvas and Lean Canvas. Creates structured 9-block canvases for business model innovation, startup validation, and strategic planning.
What is a Business Model Canvas?
A Business Model Canvas (BMC) is a strategic management template for developing new or documenting existing business models. It's a visual chart describing a firm's value proposition, infrastructure, customers, and finances.
| Aspect |
Business Model Canvas |
Lean Canvas |
| Creator |
Alexander Osterwalder |
Ash Maurya |
| Focus |
Established businesses |
Startups, early-stage |
| Emphasis |
Value creation & delivery |
Problem-solution fit |
| Key Difference |
Key Partners, Key Resources |
Problem, Solution, Unfair Advantage |
The 9 Building Blocks
Business Model Canvas Blocks
┌─────────────────┬─────────────────┬─────────────────┬─────────────────┬─────────────────┐
│ Key Partners │ Key Activities │ Value │ Customer │ Customer │
│ │ │ Propositions │ Relationships │ Segments │
│ Who helps us? │ What do we do? │ │ │ │
│ │ │ What value do │ How do we │ Who do we │
│ ├─────────────────┤ we deliver? │ interact? │ serve? │
│ │ Key Resources │ │ │ │
│ │ │ ├─────────────────┤ │
│ │ What do we │ │ Channels │ │
│ │ need? │ │ │ │
│ │ │ │ How do we │ │
│ │ │ │ reach them? │ │
├─────────────────┴─────────────────┴─────────────────┴─────────────────┴─────────────────┤
│ Cost Structure │ Revenue Streams │
│ What does it cost? │ How do we earn? │
└─────────────────────────────────────────────────────┴───────────────────────────────────┘
Block Definitions
| Block |
Question |
Examples |
| Customer Segments |
Who are our most important customers? |
Mass market, Niche, Segmented, Diversified |
| Value Propositions |
What value do we deliver? What problems do we solve? |
Newness, Performance, Customization, Price |
| Channels |
How do we reach and deliver to customers? |
Direct, Indirect, Own, Partner |
| Customer Relationships |
How do we interact with each segment? |
Personal, Automated, Self-service, Communities |
| Revenue Streams |
How does each segment pay? |
Asset sale, Subscription, Licensing, Advertising |
| Key Resources |
What do we need to deliver our value proposition? |
Physical, Intellectual, Human, Financial |
| Key Activities |
What must we do well? |
Production, Problem Solving, Platform/Network |
| Key Partnerships |
Who helps us? |
Strategic alliances, Suppliers, Joint ventures |
| Cost Structure |
What are our major costs? |
Fixed, Variable, Economies of scale/scope |
Workflow
Phase 1: Preparation
Step 1: Define Context
## Canvas Context
**Organization:** [Company / Product / Initiative]
**Purpose:** [New business / Innovation / Documentation / Pivot]
**Scope:** [Entire business / Product line / Service]
**Date:** [ISO date]
**Facilitator:** canvas-facilitator
Step 2: Gather Inputs
Before filling the canvas:
- Existing business plans, strategy documents
- Customer research, personas
- Competitive analysis
- Financial data (if documenting existing model)
Phase 2: Fill the Canvas (Right to Left)
Start with Customer Segments (demand side), then move to Value Proposition and infrastructure (supply side).
Step 1: Customer Segments
## Customer Segments
| Segment | Description | Size | Priority |
|---------|-------------|------|----------|
| [Name] | [Who are they? Demographics, needs] | [Market size] | Primary/Secondary |
**Questions to answer:**
- For whom are we creating value?
- Who are our most important customers?
- What are their jobs-to-be-done?
Segment Types
| Type |
Description |
Example |
| Mass Market |
Large group, similar needs |
Consumer electronics |
| Niche Market |
Specialized, specific needs |
Luxury goods |
| Segmented |
Distinct segments, related needs |
Banks (retail vs wealth) |
| Diversified |
Unrelated segments |
Amazon (retail + AWS) |
| Multi-sided |
Interdependent segments |
Platforms (users + advertisers) |
Step 2: Value Propositions
## Value Propositions
| Segment | Value Proposition | Type | Differentiation |
|---------|-------------------|------|-----------------|
| [Segment] | [What value delivered?] | [Type] | [Why us over competitors?] |
**Questions to answer:**
- What value do we deliver to each segment?
- Which customer problems are we solving?
- What bundles of products/services do we offer?
Value Proposition Types
| Type |
Description |
| Newness |
New, previously unavailable |
| Performance |
Better performance |
| Customization |
Tailored to needs |
| Getting the Job Done |
Helps complete a task |
| Design |
Superior design |
| Brand/Status |
Status or brand value |
| Price |
Lower price |
| Cost Reduction |
Reduces customer costs |
| Risk Reduction |
Reduces customer risks |
| Accessibility |
Makes available to new users |
| Convenience |
Easier to use |
Step 3: Channels
## Channels
| Phase | Channel | Type | Effectiveness |
|-------|---------|------|---------------|
| Awareness | [How do customers learn about us?] | Own/Partner | High/Med/Low |
| Evaluation | [How do they evaluate?] | Own/Partner | High/Med/Low |
| Purchase | [How do they buy?] | Own/Partner | High/Med/Low |
| Delivery | [How do we deliver?] | Own/Partner | High/Med/Low |
| After Sales | [How do we support?] | Own/Partner | High/Med/Low |
Step 4: Customer Relationships
## Customer Relationships
| Segment | Relationship Type | Purpose | Cost |
|---------|-------------------|---------|------|
| [Segment] | [Type] | Acquisition/Retention/Upselling | High/Med/Low |
Relationship Types
| Type |
Description |
| Personal Assistance |
Human interaction |
| Dedicated Personal |
Specific rep assigned |
| Self-Service |
No direct relationship |
| Automated Services |
Automated personalization |
| Communities |
User communities |
| Co-creation |
Customers help create value |
Step 5: Revenue Streams
## Revenue Streams
| Segment | Revenue Type | Pricing Model | % of Revenue |
|---------|--------------|---------------|--------------|
| [Segment] | [Type] | Fixed/Dynamic | [Percentage] |
Revenue Types
| Type |
Description |
Pricing |
| Asset Sale |
Selling ownership rights |
List price, Volume, Negotiation |
| Usage Fee |
Pay per use |
Per unit, Tiered |
| Subscription |
Recurring payment |
Monthly, Annual |
| Lending/Renting |
Temporary access |
Time-based |
| Licensing |
Permission to use IP |
Per license, Royalty |
| Brokerage |
Intermediation fee |
Commission |
| Advertising |
Display ads |
CPM, CPC, CPA |
Step 6: Key Resources
## Key Resources
| Resource | Category | Source | Strategic Importance |
|----------|----------|--------|---------------------|
| [Resource] | Physical/IP/Human/Financial | Own/Lease/Partner | Critical/Important/Supporting |
Step 7: Key Activities
## Key Activities
| Activity | Category | Importance | Insource/Outsource |
|----------|----------|------------|-------------------|
| [Activity] | Production/Problem Solving/Platform | Critical/Important | Insource/Outsource |
Step 8: Key Partnerships
## Key Partnerships
| Partner | Type | Motivation | Resources Provided |
|---------|------|------------|-------------------|
| [Partner] | Strategic Alliance/Coopetition/JV/Supplier | Optimization/Risk/Acquisition | [What they provide] |
Partnership Motivations
- Optimization and Economy of Scale - Reduce costs
- Reduction of Risk and Uncertainty - Share risk
- Acquisition of Resources and Activities - Gain capabilities
Step 9: Cost Structure
## Cost Structure
| Cost Category | Type | Driver | % of Total |
|---------------|------|--------|------------|
| [Cost] | Fixed/Variable | [What drives it] | [Percentage] |
**Cost Focus:** ☐ Cost-Driven ☐ Value-Driven
Phase 3: Analysis and Validation
Step 1: Check Coherence
| Check |
Question |
Pass? |
| Value-Customer Fit |
Does value proposition address segment needs? |
☐ |
| Channel-Segment Fit |
Do channels reach segments effectively? |
☐ |
| Revenue-Cost Balance |
Do revenues exceed costs? |
☐ |
| Resource-Activity Alignment |
Do resources support key activities? |
☐ |
| Partnership Logic |
Do partnerships fill capability gaps? |
☐ |
Step 2: Identify Risks
## Business Model Risks
| Block | Risk | Likelihood | Impact | Mitigation |
|-------|------|------------|--------|------------|
| [Block] | [Risk description] | H/M/L | H/M/L | [Action] |
Lean Canvas (Alternative)
For startups and early-stage ventures, use Lean Canvas which replaces some blocks:
| BMC Block |
Lean Canvas Block |
Why the Change |
| Key Partners |
Problem |
Focus on problem validation |
| Key Activities |
Solution |
Focus on solution validation |
| Key Resources |
Key Metrics |
Measure what matters |
| Customer Relationships |
Unfair Advantage |
Competitive moat |
Lean Canvas Template
## Lean Canvas: [Product/Startup]
**Date:** [ISO date]
**Iteration:** [1, 2, 3...]
### Problem (Top 3)
1. [Most critical problem]
2. [Second problem]
3. [Third problem]
**Existing Alternatives:** [How do customers solve this today?]
### Customer Segments
**Early Adopters:** [Who will use first?]
### Unique Value Proposition
**Single, clear message:** [One sentence that explains why you're different and worth attention]
**High-Level Concept:** [X for Y analogy, e.g., "Uber for dog walking"]
### Solution (Top 3 Features)
1. [Feature addressing Problem 1]
2. [Feature addressing Problem 2]
3. [Feature addressing Problem 3]
### Channels
[Path to customers - how will you reach early adopters?]
### Revenue Streams
[Revenue model, pricing, lifetime value]
### Cost Structure
[Customer acquisition costs, hosting, people, etc.]
### Key Metrics
[The numbers that tell you how you're doing]
### Unfair Advantage
[Something that cannot easily be copied or bought]
Output Formats
Narrative Summary
## Business Model Summary: [Organization]
**Date:** [ISO date]
**Analyst:** canvas-analyst
**Type:** Business Model Canvas / Lean Canvas
### Executive Summary
[2-3 sentence summary of the business model]
### Customer Focus
- **Primary Segment:** [Description]
- **Value Delivered:** [Core value proposition]
- **Channels:** [Primary channels]
### Value Creation
- **Key Activities:** [Core activities]
- **Key Resources:** [Critical resources]
- **Key Partners:** [Strategic partners]
### Financial Model
- **Revenue Model:** [How money is made]
- **Cost Structure:** [Major cost drivers]
- **Unit Economics:** [Key metrics]
### Risks and Opportunities
| Type | Description | Priority |
|------|-------------|----------|
| Risk | [Top risk] | High |
| Opportunity | [Top opportunity] | High |
### Recommendations
1. [Priority recommendation]
2. [Secondary recommendation]
Structured Data (YAML)
business_model_canvas:
version: "1.0"
date: "2025-01-15"
organization: "Acme Corp"
analyst: "canvas-analyst"
type: "business_model_canvas" # or "lean_canvas"
customer_segments:
- name: "SMB Owners"
description: "Small business owners seeking efficiency"
size: "5M in target market"
priority: primary
jobs_to_be_done:
- "Manage invoicing"
- "Track expenses"
value_propositions:
- segment: "SMB Owners"
proposition: "Automated bookkeeping that saves 10 hours/week"
type: convenience
differentiation: "AI-powered categorization"
channels:
- phase: awareness
channel: "Content marketing"
type: own
effectiveness: high
- phase: purchase
channel: "Website"
type: own
effectiveness: high
customer_relationships:
- segment: "SMB Owners"
type: self_service
purpose: retention
cost: low
revenue_streams:
- segment: "SMB Owners"
type: subscription
pricing: "fixed"
amount: "$29/month"
percentage: 85
key_resources:
- name: "AI/ML Platform"
category: intellectual
source: own
importance: critical
key_activities:
- activity: "Platform development"
category: production
importance: critical
insource: true
key_partnerships:
- partner: "Accounting Firms"
type: strategic_alliance
motivation: acquisition
provides: "Referrals, expertise"
cost_structure:
focus: value_driven
costs:
- category: "Engineering"
type: fixed
percentage: 40
- category: "Cloud hosting"
type: variable
percentage: 15
validation:
value_customer_fit: true
channel_segment_fit: true
revenue_cost_balance: true
Mermaid Diagram
flowchart TB
subgraph Partners["Key Partners"]
P1[Partner 1]
P2[Partner 2]
end
subgraph Activities["Key Activities"]
A1[Activity 1]
A2[Activity 2]
end
subgraph Resources["Key Resources"]
R1[Resource 1]
R2[Resource 2]
end
subgraph VP["Value Propositions"]
V1[Value 1]
V2[Value 2]
end
subgraph CR["Customer Relationships"]
CR1[Relationship 1]
end
subgraph CH["Channels"]
CH1[Channel 1]
CH2[Channel 2]
end
subgraph CS["Customer Segments"]
CS1[Segment 1]
CS2[Segment 2]
end
Partners --> Activities
Resources --> VP
Activities --> VP
VP --> CR
VP --> CH
CR --> CS
CH --> CS
subgraph Costs["Cost Structure"]
C1[Cost 1]
C2[Cost 2]
end
subgraph Revenue["Revenue Streams"]
Rev1[Revenue 1]
Rev2[Revenue 2]
end
When to Use
| Scenario |
Use Business Model Canvas? |
| New venture planning |
Yes - full canvas |
| Startup validation |
Yes - Lean Canvas preferred |
| Business model innovation |
Yes - explore alternatives |
| Strategic planning |
Yes - document current state |
| M&A analysis |
Yes - compare models |
| Product line analysis |
Partial - focused canvas |
Integration
Upstream
- stakeholder-analysis - Identify customer segments
- swot-pestle-analysis - Environmental context
- journey-mapping - Customer experience insights
Downstream
- Requirements - Feature requirements from value propositions
- Financial modeling - Revenue and cost projections
- Roadmaps - Initiative prioritization
Related Skills
stakeholder-analysis - Customer and partner analysis
swot-pestle-analysis - Strategic context
value-stream-mapping - Operational efficiency
capability-mapping - Organizational capabilities
decision-analysis - Business model decisions
Version History
- v1.0.0 (2025-12-26): Initial release