Want to develop a business that is currently running? All businesses must have a business model. If it is not clear business model then this will be difficult in the future. People often say doing business while looking for forms and finding shapes. Ideally, before actually starting a business must first determine what kind of shape. But what happens to most businesses is to walk like “running water”. Creating a new or existing business needs to be modeled business to be clear what will, is, and have done.
The business model is actually the frame of a business plan by thinking about how the company will gain profit or income by taking into account all business components. Simple understanding is how the company will make money. That’s what to think about! How to make money!
Someone named Alexander Osterwalder created a canvas in 2008, designed for a business model known as Lean Canvas. By using Lean Canvas this is the main activity in business looks clear and can be further explore to determine a good business model. The Lean Canvas looks sleek with 9 simple blocks but contains 9 key activities in a business model. This canvas is a good strategic management to be used in start up business or develop existing business. Entrepreneurs and intrapreneurs easily use Lean Canvas for their business model.
What are the 9 key activities? As the name implies Key Activities then this is an important activity to run a business. Without these 9 activities the business is not perfect. All parts of these 9 activities are equally important and should be considered carefully. Here are 9 key activities of a business model.
- Customer Segments: Who are our customers? What do they think, feel, see and do about our products?
- Value Propositions: What is interesting about the value proposition? Why do customers buy and use our products?
- Channels: How this value is promoted, sold, and delivered. Are the channels that we use so far work well to make money?
- Customer Relationships: How do you interact with customers through their experience of your product over the years?
- Revenue Streams: How does a business earn revenue from a value proposition?
- Key Activities: What unique strategies should a company have to compete with? What activities should the company do?
- Key Resources: What strategic strategic assets should a company have in order to compete?
- Key Partnerships: Who are the business partners who need to be partnered in order for the business to run well? Partnership which is not required for the company to focus on the main partnership.
- Cost Structure: What is the most important business cost? How is cost related to revenue?
These nine things need to be answered by both the individual business and the existing business. May nobody ever be left to think about going to a more profitable business!