Top Ten Reasons the Business Model Canvas ROCKS

Top Ten Reasons the Business Model Canvas ROCKS! © Vt. SBDC

1. BMC tells the whole business story on one page utilizing 9 basic building blocks. © Vt. SBDC

2. BMC is clear and concise. It forces the business owner to address all components of running a business. © Vt. SBDC

Who can help? How do you do it? What do you need to do it? What will it cost? What do you do? How do you interact with them? Who do you help? How do you reach them? How much will you make? © Vt. SBDC

3. BMC puts the needs of the customer first. © Vt. SBDC

Who can help? 8 How do you do it? What do you do? 6 2 7 Who do you help? 4 1 3 How do you reach them? What do you need to do it? What will it cost? How do you interact with them? 9 How much will you make? 5 © Vt. SBDC

4. BMC places the business in the context of the real world. © Vt. SBDC

Key Trends i. e. : Societal Shifts, New Technologies Industry Forces i. e. : Competitors How do you do it? What do you need to do it? What will it cost? What do you do? How do you interact with them? Who do you help? How do you reach them? How much will you make? Macro-Economic Forces i. e. : What is happening in the Global Economy that will affect your product/service Market Forces i. e. : Growth or Decline in Particular Segments Who can help? © Vt. SBDC

5. BMC is a fast, easy, effective way to challenge the basic business idea to see if it has legs. © Vt. SBDC

6. If a full business plan is needed, development is easy because of the thoughtful work completed on the BMC. © Vt. SBDC

7. BMC addresses the 5 C’s: Character Capacity Capital Collateral Conditions © Vt. SBDC

CHARACTER CAPITAL If they can complete this effectively they have started to prove themselves As the numbers get drilled down and their level of required investment becomes clear Key Trends COLLATERAL Is there land, buildings, equipment, etc. How do you do it? What do you need to do it? What will it cost? CONDITIONS Answer the 4 outside quadrants What do you do? How do you interact with them? Who do you help? Market Forces Industry Forces Who can help? How do you reach them? How much will you make? Macro-Economic Forces CAPACITY Revenue Streams – Cost Structure = P/L & Cash Flow © Vt. SBDC

8. BMC can be used to identify an existing business’ problems and opportunities. Vt.

Examples of Existing Business Uses Opportunities: • • • New product introduction New distribution model New hires Lending needs: • • LOC New asset based loan Concerns: • • • Decrease in sales Increase in expenses Decrease in profitability © Vt. SBDC

9. BMC works in our new business environment because it’s dynamic and visual. Comprehensive. And it works for every business. © Vt. SBDC

10. It’s HIP! Our clients LOVE it. © Vt. SBDC

Resources on the Business Model Canvas: Best Book: Business Model Generation by Alexander Osterwalder & Yves Pigneur Best Videos: https: //www. youtube. com/watch? v=ww. Sh. Fs. SFb-Y https: //www. youtube. com/watch? v=wl. KP-Ba. C 0 j. A https: //www. youtube. com/watch? v=i. A 5 MVUNk. Sk. M https: //www. youtube. com/watch? v=7 O 36 YBn 9 x_4 https: //www. youtube. com/watch? v=-2 gd_vh. NYT 4 https: //www. youtube. com/watch? v=Sshgl. HDKQCc “Funded in part through a Cooperative Agreement with the U. S. Small Business Administration. All opinions, conclusions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA. ” © Vt. SBDC