What is the Business Model Canvas
Created by Alexander Osterwalder, the BMC summarizes your business model in 9 blocks. It's a visual tool that forces clarity and reveals connections between every part of the business.
The 9 blocks explained
Customer segments, value proposition, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure.
Example: SaaS project management tool
Value proposition: simplify remote team management. Segment: tech startups with 5-50 people. Channels: web, product-led growth. Revenue: monthly subscription $10-50/user.
Example: Freelance service marketplace
Value proposition: connect verified freelancers with companies. Two segments: supply and demand. Revenue: transaction commission (15%). Key resources: platform and matching algorithm.
How to validate your BMC
For each block, identify your riskiest hypothesis. Design an experiment to test it. If your value proposition doesn't solve a real problem, the rest of the canvas collapses.
At Vynta we use the Business Model Canvas in our discovery processes. We help you design and validate your digital business model.