The Business Model Canvas is a strategic tool used by businesses to visualize, design, and develop their business model. In 2005, a Swiss business theorist Alexander Osterwalder proposed a simple and straightforward technique for drafting a business plan. Called the ‘business model canvas,’ the concept was formalized in his book, Business Model Generation, published in 2010.
What is the Canvas?
The business model canvas is a one-page planning tool. It consists of nine boxes, each representing one of the core elements of a business.
Optometrists can use the business model canvas as a sheet for brainstorming new ideas for their practice.
The Nine Components
The nine elements of the business model canvas are as follows:
- Customer segments – Define your target audience. Who are your most important customers? What are they attracts these customers to your office?
- Value propositions – What problem are you solving for your customer? Your unique solutions or the ‘value’ you hope to deliver to the customer segments.
- Communication channels – The different modes of communication to interact with your customers.
- Customer relationships – How strong is your relationships with your customers?
- Revenue streams – The different sources of income for your practice. Does your company have multiple methods of generating revenue? What is the pricing strategy for the products and how do you offer customers to pay for products?
- Key resources – these are the main assets and other supplies you require in order to fulfill your value propositions.
- Key activities – What specific key activities are necessary to deliver your value proposition? What differentiates you from others? What services do you provide?
- Key partnerships –Identify your company’s key partners. This can consist of important suppliers? What resources and duties does the company receive from these partners?
- Cost structure – What are major drivers of cost? Fixed vs variable.