Business model canvas? What’s that?!
Imagine you have a magic 'Yes/No' button for every decision related to your business. What questions would you ask it?
Image: The Continuous (R)Evolution Business Model Canvas
I talk a lot about this thing, “a business model canvas.” I talk about it so much that it probably sounds like “biznismodlcanvis” most of the time, to most people’s ears. Honestly, I wish there were a better name, but just like Kleenex and BandAid, it seems to be the term people use to refer to the tool, so let me try to describe the tool and just how dang useful it is!
A business model canvas is a graphic representation of all the foundational components of a business. It’s set up as a series of boxes on a single page, allowing the viewer to see the whole, big picture in a distilled snapshot. Each box covers a single component, from who is your ideal customer? To what are your revenue streams?
When complete, you have a robust visual that serves as a foundation and guide! Who doesn’t need those two things when building a business?!?! Obviously, we all do.
What’s fascinating is that most of us don’t start here. We start with our idea, we take some online classes to help us learn to use social media to market our idea, we’re reminded we need to figure out who our ideal customers are, then we circle around to our product or service again trying to tweak it to meet that audience’s needs. That is, until we realize that those aren’t the people we really wanted to serve, or this tweaked product isn’t what I had in mind when I started, or how did I end up spending my days doing this?!? Whoops, I guess I slipped into first person there! ;-)
A business model canvas can be a bunch of words on a page with little depth and zero intentionality. Another thing to print out, look at for a minute, and toss into the recycling bin.
But it can also be a map! A tool you return to again and again to make all your business decisions easier. Here’s what I mean: knowing specifically who her ideal client would be, allowed Casey* to stop trying to serve everyone, refine her messaging, speak with clarity and confidence to her unique niche, and attract folks who needed just exactly what she had to offer.
Similarly, Taylor was able to get crystal clear on his revenue streams, built a profit and loss spreadsheet and knew exactly how many programs he needed to sell to meet his annual revenue goals - while also accounting for taxes and overhead!
Finally, Vivian used her “biznismodlcanvis” to make crucial business decisions. No longer lured to every shiny new (money making) opportunity, she has been able discern which opportunities are aligned with her values, which are aligned with what she wants her business to be, which will allow her to BE and DO in ways that support her whole self! She’s also learned to say “no, thank you” to the opportunities that sit outside of her canvas. This is freedom!
A business model canvas is a tool and just like any tool, you can have a good one, or a not so good one. Scissors that cut paper, or scissors that just sort of weakly collapse the paper!
So ask the deep questions, ask them 3-5 times to get at the heart of the matter. And, always, start with your values! They are your guide, the tool becomes the representation, and your business the vessel for the good you want to do in the world.
Here are some questions to think with:
Is your “'ideal customer” truly ideal, or are you just afraid to niche down?
What if your initial product or service idea is actually the wrong solution to your target customer's problem?
Imagine your business is wildly successful. What impact would it have on the world, and how does that align with your purpose?
Are there opportunities to refine your business model to create a more positive impact without sacrificing profitability?
If you could only keep three elements of your current business model, which would they be and why?
And my favorite:
Imagine you have a magic 'Yes/No' button for every decision related to your business. What questions would you ask it? Does your business model provide your answer?
If you haven’t done so already, you can download my Know Your Values guide here to get started.
Have fun!
*Names changed for privacy.
