The 9 Building Blocks of the Business Model Canvas
The Business Model Canvas is the world's most popular strategic management tool for designing, describing, and analyzing business models. Learn about each of the nine blocks that make up this powerful framework.
What is the Business Model Canvas?
The Business Model Canvas (BMC) is a strategic management template developed by Alexander Osterwalder and Yves Pigneur. It provides a visual chart with nine building blocks that describe a company's value proposition, infrastructure, customers, and finances. Used by millions of entrepreneurs worldwide, the BMC helps you see the big picture of your business on a single page.
Watch: Business Model Canvas Explained
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The 9 Building Blocks
Key Partnerships
The network of suppliers and partners that make your business model work
Learn more →Key Activities
The most important things a company must do to make its business model work
Learn more →Key Resources
The most important assets required to make your business model work
Learn more →Value Propositions
The bundle of products and services that create value for customers
Learn more →Customer Relationships
The types of relationships a company establishes with customer segments
Learn more →Channels
How a company communicates with and reaches its customer segments
Learn more →Customer Segments
The different groups of people or organizations you aim to reach and serve
Learn more →Cost Structure
All costs incurred to operate a business model
Learn more →Revenue Streams
The cash a company generates from each customer segment
Learn more →Recommended Order for Filling Your Canvas
While you can start with any block, experts recommend the following order for the most effective business model design:
- Customer Segments - Start by identifying who you're creating value for
- Value Propositions - Define what unique value you offer to each segment
- Channels - Determine how you'll reach and communicate with customers
- Customer Relationships - Decide what type of relationships you'll establish
- Revenue Streams - Identify how your business will generate income
- Key Resources - List the assets required to deliver your value proposition
- Key Activities - Define the most important actions your business must take
- Key Partnerships - Identify strategic partners and suppliers
- Cost Structure - Calculate all costs to operate your business model
Why Use the Business Model Canvas?
Visual Clarity
See your entire business model at a glance. The canvas format makes complex business strategies easy to understand and communicate.
Strategic Insights
Identify gaps, opportunities, and areas for improvement in your business model quickly and effectively.
Team Alignment
Get everyone on the same page. The BMC is perfect for workshops, meetings, and collaborative strategy sessions.
Rapid Iteration
Easily test and pivot your business model. Make changes quickly without lengthy business plans.
Start Building Your Business Model Canvas
Create your Business Model Canvas now using our free online tool. Join thousands of entrepreneurs and business strategists.
Frequently Asked Questions
What is a Business Model Canvas?
The Business Model Canvas is a one-page strategic management tool that describes how a company creates, delivers, and captures value. It consists of nine building blocks that cover the main areas of business: customers, offer, infrastructure, and financial viability.
How long does it take to create a Business Model Canvas?
You can create a first draft in 30 minutes to 1 hour. However, a thorough canvas that's been validated with customers and stakeholders may take several iterations over days or weeks.
Who should use the Business Model Canvas?
The BMC is valuable for startups, established companies, students, consultants, and anyone looking to understand, design, or innovate business models. It's particularly useful for entrepreneurs validating new ideas.
Is the Business Model Canvas free to use?
Yes! The Business Model Canvas framework is free to use under a Creative Commons license. Our online tool also offers a free tier to help you get started.