Business Model Canvas: The key to successful business planning
In the business world, not having a clear plan is a recipe for failure. The Business Model Canvas (BMC) is a tool that clearly helps to define the foundations of a company - from the target group to the sources of revenue. Today, it is used by startups and experienced entrepreneurs alike. In this article, we will show how to work with the BMC using examples from different industries, also mentioning cost-optimising solutions such as virtual office Wrocław.
From this article you will learn:
- How to fill in each of the 9 fields of the Business Model Canvas using concrete examples
- What business decisions you can make by analysing the different elements
- How to optimise costs and increase the company's reach
What is the Business Model Canvas?
Marek, who owns a marketing agency, and Anna, who runs an organic cosmetics shop, although operating in different industries, both used the same tool - the Business Model Canvas (BMC).
"When I started, I only had a general vision," admits Marek. "The BMC helped me translate it into concrete actions." Anna adds, "In my case, the canvas allowed me to see the gaps in the initial plan, especially in terms of distribution."
The Business Model Canvas is made up of nine key elements that together create a complete picture of how a company operates. Let's take a look at each of them and how entrepreneurs from different industries have used them.
1. customer segments
Who is my ideal customer?
When starting to work with the BMC, you must first define precisely who your customer will be. This is a key question, because all the other elements of the model depend on it.
Consider: Who are you creating value for? Who will benefit most from your solution? Whose problems are you solving?
Clearly defining your target groups will allow you to better tailor your offer and outreach channels. Segmentation helps you avoid spreading your resources.
Marek initially targeted small businesses in need of marketing support. "However, analysis at BMC showed that medium-sized clients with budgets of £10,000 and above per month were the most profitable. This completely changed our strategy," he admits.
Anna discovered two clear target groups:
- Environmentally conscious professionals (30-45 years old) - represent 60% of revenue
- Young mums (25-35 years old) looking for safe cosmetics - generate 35% sales
- Occasional customers - other 5%
"Understanding these ratios has helped us to better target our marketing efforts," he explains.
2. Value proposition - the core of competitive advantage
What makes my offer stand out? Why will the client choose me? How does my proposal uniquely solve problems or meet the client's needs?
This element of the BMC requires answers to fundamental questions: What unique things do you offer your clients? What problems do you solve for them? Why should they choose you and not your competitors?
The value proposition is not just the product or service itself, but a holistic response to the customer's needs.
Marek created three levels of offering:
- Audit and marketing strategy (average £15,000)
- Comprehensive marketing service (from £10,000 per month)
- Single advertising campaigns (projects from £5,000)
"For each level, we have defined precisely what the customer receives. This puts an end to discussions about price," he explains.
Anna differentiated the value proposition for her groups:
- For professionals: a premium line with advanced active ingredients
- For young mums: safe, certified products for the whole family
"These are not just different products, but completely different marketing messages," he stresses.
3. distribution channels
How do I reach my customers? Which channels are most effective?
When completing this section, you need to think about the whole pathway to reach the customer: How will customers find out about your offer? Where and how will they be able to buy it? How will you deliver your value to them?
Well thought-out channels are often the key to business success.
Marek has opted for a mix of channels:
- LinkedIn for customer acquisition (70% leads)
- Content marketing and SEO (20% leads)
- Referrals from satisfied customers (10% leads)
"We also needed a professional meeting space. Virtual office Wrocław has proved to be an ideal solution - we have a prestigious address and access to meeting rooms when needed."
Anna uses:
- Own online shop (65% sales)
- Premium marketplaces (25%)
- Sales through partner beauty salons (10%)
"BMC has shown that we are losing margin on the marketplaces. We are gradually redirecting traffic to our own shop."
4. customer relations
How do I build loyalty? Do I rely on automation or personal contact?
This section requires reflection on the nature and quality of customer contacts. What kind of relationship do you want to build with each segment? Will it be a personal relationship or an automated one? How will you attract new customers and retain existing ones?
The answers to these questions will influence the costs and resources needed in your business.
Marek has implemented a customer care system:
- Dedicated account manager for each client
- Quarterly strategy meetings
- Monthly performance reports
- Industry newsletter for potential customers
"A professional company address further reinforces trust, especially at first contact," he notes.
Anna has created a community around the brand:
- Loyalty programme with points for purchases
- Webinars on cosmetic ingredients
- Closed Facebook group (15 000 members)
- Sample system for regular customers
"The community is our most valuable asset - members recommend us to their friends."
5. revenue streams
What are customers prepared to pay for?
This is where you need to analyse carefully: What specifically are your customers prepared to pay for? What pricing model will work best for each segment? Will revenues be one-off or recurring? Can I introduce a subscription model?
It is the financial foundation of your business that must be realistically assessed.
Brand revenue structure:
- Strategic consulting (60% revenue)
- Permanent marketing service (30%)
- One-off projects (10%)
"Canvas showed potential in consulting. We initially focused on social media, which was a mistake," - he admits.
Anna elaborated on several sources:
- Retail (50% revenue)
- Monthly subscriptions (40%)
- Wholesale to showrooms (10%)
"Subscription kits mean stable revenue and better production planning." - Anna explains.
6 Key resources
When planning this element, ask yourself: What specifically do you need to deliver your value proposition? What resources are required to support your chosen distribution channels and maintain customer relationships?
These can be physical, intellectual, human or financial resources.
Marek identified:
- Specialist team (7 people)
- Marketing automation tools
- Knowledge base and case studies
- Meeting space (virtual office)
"We have invested in training the team. This allows us to serve demanding clients."
Anna focused on:
- Formulation laboratory
- Organic certification
- Storage system
- E-commerce platform
As Anna notes, "an in-house laboratory is a big expense, but it gives us control over quality."
7 Key actions
What processes are necessary for action? Where to focus efforts?
In this section, you identify the most important activities you need to perform to make your business model work. What do you need to do every day to deliver value to your customers? What activities are critical to your success? This is a list of operational priorities for your business.
Marek singled out:
- Analysis of customer needs
- Development of marketing strategies
- Campaign monitoring and optimisation
- Reporting of results
"Every action must have measurable results." - explains Marek.
Anna specified:
- Research and development of new formulations
- Production quality control
- Order handling
- Customer education
"The BMC has helped us to prioritise and not get distracted by side projects." - enthuses Anna.
8 Key partners
Who can help me achieve my goals? Is it worth outsourcing some of the tasks?
As you complete this section, consider: Who do you need to keep your business running smoothly? Which activities will you not do yourself? What external resources do you need? Good partnerships can significantly reduce the cost and risk of doing business.
Marek works with:
- Freelancers (graphic designers, copywriters)
- Printers
- Operator virtual office
- Advertising platforms
Anna, on the other hand, has set her sights on:
- Local producers of ingredients
- Certification laboratory
- Logistics companies
- Beauty salons
9 Cost structure
This element requires honest answers to questions: What are the most important costs in your business model? Which resources and activities are the most expensive? How do you optimise them? Will your business be geared towards minimising costs or maximising value?
This is the basis for assessing the viability of the whole project.
Mark's main costs:
- Team salaries (65% costs)
- Tools and software (15%)
- Own marketing (10%)
- Virtual office and administration (10%)
"Thanks to optimisation at BMC, we are saving £4,000 a month on the office."
Anna's cost structure:
- Production and components (50% costs)
- Marketing and customer service (25%)
- Logistics (15%)
- Product development (10%)
Practical lessons for the future
Mark and Anna's experience shows that the BMC is not a theory, but a practical tool for making business decisions.
"We do a review of Canvas every quarter," says Anna. "Recently, for example, we added TikTok as a new channel because that's where our younger group is."
"The BMC is not a document that we create once and put on the shelf," stresses Marek. "It's a living tool that evolves with the company."
The key to success is to regularly review assumptions and be ready to change. The Business Model Canvas provides a framework that helps to structure thinking and make better business decisions. As the examples of Mark and Anna show, a systematic approach to planning, combined with cost optimisation and attention to a professional image, allows you to build a stable and profitable business.
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