The Easy Guide to the Business Model Canvas


Got a new business idea, but don’t know how to put it to work? Want to improve your existing business model? Overwhelmed by writing your business plan? There is a one-page technique that can provide you the solution you are looking for, and that’s the business model canvas.

In this guide, you’ll have the Business Model Canvas explained, along with steps on how to create one. All business model canvas examples in the post can be edited online.

What is a Business Model Canvas

A business model is simply a plan describing how a business intends to make money. It explains who your customer base is and how you deliver value to them and the related details of financing. And the business model canvas lets you define these different components on a single page.   

The Business Model Canvas is a strategic management tool that lets you visualize and assess your business idea or concept. It’s a one-page document containing nine boxes that represent different fundamental elements of a business.  

The business model canvas beats the traditional business plan that spans across several pages, by offering a much easier way to understand the different core elements of a business.

The right side of the canvas focuses on the customer or the market (external factors that are not under your control) while the left side of the canvas focuses on the business (internal factors that are mostly under your control). In the middle, you get the value propositions that represent the exchange of value between your business and your customers.

The business model canvas was originally developed by Alex Osterwalder and Yves Pigneur and introduced in their book ‘ Business Model Generation ’ as a visual framework for planning, developing and testing the business model(s) of an organization.

Business Model Canvas Explained

Why You Need a Business Model Canvas

How to Make a Business Model Canvas

There are nine building blocks in the business model canvas and they are customer value proposition, customer segments, channels, customer relationships, revenue streams, key resources, key partners, key activities, and cost structure.

When filling out a Business Model Canvas, you will brainstorm and conduct research on each of these elements. The data you collect can be placed in each relevant section of the canvas. So have a business model canvas ready when you start the exercise.  

Business Model Canvas Template

What are the 9 Components of the Business Model Canvas?

Key Activities

Key resources, key partners.

Let’s look into what the 9 components of the BMC are in more detail.

Customer segments

These are the groups of people or companies that you are trying to target and sell your product or service to.

Segmenting your customers based on similarities such as geographical area, gender, age, behaviors, interests, etc. gives you the opportunity to better serve their needs, specifically by customizing the solution you are providing them.

After a thorough analysis of your customer segments, you can determine who you should serve and ignore. Then create customer personas for each of the selected customer segments.

Customer Persona Template for Business Model Canvas Explained

There are different customer segments a business model can target and they are;

Use STP Model templates for segmenting your market and developing ideal marketing campaigns

Visualize, assess, and update your business model. Collaborate on brainstorming with your team on your next business model innovation.

Customer relationships

In this section, you need to establish the type of relationship you will have with each of your customer segments or how you will interact with them throughout their journey with your company.

There are several types of customer relationships

You can understand the kind of relationship your customer has with your company through a customer journey map . It will help you identify the different stages your customers go through when interacting with your company. And it will help you make sense of how to acquire, retain and grow your customers.

Customer Journey Map

This block is to describe how your company will communicate with and reach out to your customers. Channels are the touchpoints that let your customers connect with your company.

Channels play a role in raising awareness of your product or service among customers and delivering your value propositions to them. Channels can also be used to allow customers the avenue to buy products or services and offer post-purchase support.

There are two types of channels

Revenue streams

Revenues streams are the sources from which a company generates money by selling their product or service to the customers. And in this block, you should describe how you will earn revenue from your value propositions.  

A revenue stream can belong to one of the following revenue models,

There are several ways you can generate revenue from

What are the activities/ tasks that need to be completed to fulfill your business purpose? In this section, you should list down all the key activities you need to do to make your business model work.

These key activities should focus on fulfilling its value proposition, reaching customer segments and maintaining customer relationships, and generating revenue.

There are 3 categories of key activities;

This is where you list down which key resources or the main inputs you need to carry out your key activities in order to create your value proposition.

There are several types of key resources and they are

Key partners are the external companies or suppliers that will help you carry out your key activities. These partnerships are forged in oder to reduce risks and acquire resources.

Types of partnerships are

Cost structure

In this block, you identify all the costs associated with operating your business model.

You’ll need to focus on evaluating the cost of creating and delivering your value propositions, creating revenue streams, and maintaining customer relationships. And this will be easier to do so once you have defined your key resources, activities, and partners.  

Businesses can either be cost-driven (focuses on minimizing costs whenever possible) and value-driven (focuses on providing maximum value to the customer).

Value propositions

This is the building block that is at the heart of the business model canvas. And it represents your unique solution (product or service) for a problem faced by a customer segment, or that creates value for the customer segment.

A value proposition should be unique or should be different from that of your competitors. If you are offering a new product, it should be innovative and disruptive. And if you are offering a product that already exists in the market, it should stand out with new features and attributes.

Value propositions can be either quantitative (price and speed of service) or qualitative (customer experience or design).

Value Proposition Canvas

What Are Your Thoughts on the Business Model Canvas?

Once you have completed your business model canvas, you can share it with your organization and stakeholders and get their feedback as well. The business model canvas is a living document, therefore after completing it you need to revisit and ensure that it is relevant, updated and accurate.

What best practices do you follow when creating a business model canvas? Do share your tips with us in the comments section below.

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Amanda Athuraliya is the communication specialist/content writer at Creately, online diagramming and collaboration tool. She is an avid reader, a budding writer and a passionate researcher who loves to write about all kinds of topics.

The 9-Step Business Model Canvas Explained (2023 Update)

snacks business model canvas

Written by Raquel Alberdi

Business | entrepreneurship, 0 comments(s).

Business Model Canvas

Blog » The 9-Step Business Model Canvas Explained (2023 Update)

snacks business model canvas

“A major mistake made by many start-ups around the world is focusing on the technology, the software, the product, and the design, but neglecting to ever figure out the business . And by “business” we simply mean how the company makes money by acquiring and serving its customers”.

-Reid Hoffman

After meeting with hundreds of entrepreneurs and business owners over the years I believe the LinkedIn co-founder and Blitzscaling author Reid Hoffman’s got it spot on.

People tend to focus on specific parts of their business, such as which software packages are being used, which is the cheapest supplier, how to optimize internal processes…?

They get so bogged down in the details of the day-to-day running that they lose the overall vision of their business.

Without this vision they are unable to scale, they make marginal profits, miss opportunities, struggle to innovate, and end up running “just another” business.

Another handy metaphor in understanding this common mistake is the soldier in the trenches .

Every meter of ground gained comes at a heavy cost, mistakes are made, and progress is hard-fought and slow…a day-to-day experience for 99% of entrepreneurs and businessmen.

But when you do have that 360 vision you see the entire battlefield. Decisions are much clearer, fewer mistakes are made, and progress is fast and methodical.

Fortunately, a business model framework exists that gives you both vision and clarity .

The Business Model Canvas provides entrepreneurs, business owners, and strategists with a tool to analyze, structure, and evolve a business while always keeping the bigger picture front of mind.

So let’s take a closer look at how it works.

Table of Content

What is the Business Model Canvas?

Customer segments, value propositions, customer relationships, revenue streams, key resources, key activities, key partners, customer segments, value proposition, strategyzer, business model canvas tool, would you like to learn more about business models.

Created by Swiss entrepreneur and Strategyzer co-founder, Alexander Osterwalder, the Business Model Canvas is a visual representation of the 9 key building blocks that form the foundations of every successful business. It’s a blueprint to help entrepreneurs invent, design, and build models with a more systematic approach.

Why is it so popular within the business community?

Its simplicity. The business model canvas allows us to carry out a high-level analysis without drilling down and getting lost in the details. You just draw out the 9 building blocks on a blank canvas, fill them in as each concept relates to your business, and hang it somewhere everybody can see.

It’s a visual overview of your entire business on a single canvas.

While the Business Model Canvas is an extremely fluid concept and hyper-specific to individual companies, each canvas is still broken down into these 9 key building blocks:

When laid out on the canvas the model will look something like this:

 Scheme of business model in which 9 important fields are developed for its execution.

While you’ve probably come across each of the 9 building blocks before, the attractiveness of the Business Model Canvas is that it confines them to a single page , not a traditional 42-page document.

This makes it a lot easier to digest, as well as assess existing business models or map out new ideas.

How do I fill out the Business Model Canvas?

To start your Business Model Canvas you will need to breakdown and analyze each of the 9 building blocks.

A good way to approach this is to gather the heads from marketing, sales, operations, finance, and manufacturing (if product-based) and pencil-in a morning where you can all meet together.

Then, after drawing a mock canvas onto a whiteboard, proceed to dissect and discuss each of the 9 building blocks as they relate to your business. You can use sticky notes to better organize your thoughts around the canvas.

If you are an entrepreneur or new business owner working alone and don’t have a team to bounce your ideas off, not to worry. You can still carry out your analysis before sharing it with a like-minded entrepreneurial community or forum, like those found on ThePowerMBA , to get useful, insightful feedback.

Whichever way you decide to approach it, I recommend you complete each block in the following order:

For continuity, I’m going to use the fashion retail giant Zara when analyzing each of the 9 key building blocks.

If you’d like to skip to another case study similar to your own business, navigate to the table of contents at the top of the page and select one of the other business model canvas examples.

Customer segment business model canvas for Zara company

The first block of the Business Canvas Model is about understanding who is the most important customer(s) you’re delivering value to. Or, in other words, who are they? What do they do? And why would they buy your product or service?

Not a single company exists without its clients, making customer segments the best block to start with while drawing out your business model canvas.

A great exercise to define your customer segments is to brainstorm and create your company’s buyer persona (s) .

Buyer personas are fictional depictions of an ideal or hypothetical client. Typically when brainstorming a buyer persona you’d want to define certain characteristics (age, demographic, gender, income, industry, pain points, goals, etc.)

However, remember at this stage we want a snapshot of our customer segment. There’s no need to jump into great detail just yet.

In the case of Zara, there are three distinct customer segments to whom they offer different products.

The products created for each of these customer segments (clothing, shoes, and accessories) are not trans-consumable. That is to say, a woman’s dress is highly unlikely to be worn by a 7-year-old child.

Once we know exactly who it is we are targeting, it’s time to look at what we as a company have to offer.

Zara Customer Segments business model canvas template showing the development of the 9 fields

The second phase is about figuring out your company’s value propositions , and importantly, your UVP (unique value proposition). The “what” that makes customers turn to you, over your competitors? Which of their problems are you best at solving?

Each value proposition consists of a bundle of products or services that fulfill the needs of a buyer persona from your customer segment. It’s the intersection between what your company offers, and the reason or impulse customers have for purchasing.

Some popular questions to ask while determining your UVP are:

So let’s try and apply this to Zara. Why do people choose to purchase from them, over their competitors?

Zara’s principal value propositions are fairly clear. They offer various ranges of stylish men’s, women’s, and children’s clothing and accessories at an affordable price.

But there’s more to it than that.

If we dive a little deeper we see Zara’s value propositions are more complex, which are behind the success of the brand:

Fast fashion

Zara adds new clothes and designs to its collections every 2-3 weeks, both in its stores and online. It keeps the brand updated, fresh, and modern while maintaining its all-important medium price point

Great eCommerce experience

Once you enter Zara’s online store you’re presented with a clean, easy-to-navigate, and high-end feel. The customer segments are visible on the left navigation bar with a search tab to further aid customers with their online experience.

Zara's Canvas business model where you can see the innovative presentation of its image

Localized stores

You can find a store in nearly all major retail locations (shopping malls, retail outlets, airports, etc.) meaning accessibility is not an issue for the majority of consumers.

Flagship stores

Zara demonstrates its aesthetic evolution to customers through its flagship stores. The recent opening of their Hudson Yards , New York City flagship is a great example of this. Customers shop around its vivid, minimalist layout offering them an experience aligned with the brand’s deeper, eco-friendly values.

Zara's Canvas business model where you can see the innovative presentation of the image of its stores

Zara Hudson Yards, New York

Business Model Canvas Template Zara - Value Propositions

The next step is to ask yourself how you are reaching your customers, and through which channels ?

This includes both the channels that customers want to communicate with you as well as how they’ll receive your products or services.

Is it going to be a physical channel? (store, field sales representatives, etc.) Or is it a digital channel? (mobile, web, cloud, etc.).

Zara has 3 primary channels in which they communicate and deliver products to its customers:

Customers can go to a traditional “bricks and mortar” store to browse, model, and purchase different items of clothing at one of their retail stores.

Alternatively, they can shop online or through their mobile application and have the product delivered straight to their door or nearest store. The choice is completely up to them!

So that covers Zara’s commercial channels, but what about how they communicate with customers?

While they do communicate through their mobile app, their predominant channel is social media.

What’s more, they’re really, really good at it.

For example, did you know that Zara invests less than 0.3% of its sales revenue into advertising?

This is only possible due to an A-rated social media presence . Customer queries are not only dealt with quickly, but recommended re-works are sent back to HQ, forwarded onto in-house designers who then apply the feedback to future collections.

This customer-first approach through fluid communication channels has saved them thousands of dollars in marketing, strengthened their brand, and created a loyal customer base.

You should only step away from this building block once you’ve decided how each of your customer segments want to be reached.

Zara Channels business model canvas template where its components are developed

Once you have acquired customers, you will need to think about how you can build , nurture, and grow those relationships.

Now, this can be automated and transactional like large eCommerce brands Amazon or Alibaba. Or, it could be at the complete opposite end of the scale and require a more personal relationship you’d typically have with a bank or your local bike shop.

Zara’s relationship with its customers is threefold, and lies somewhere in the middle of transactional and personal:

Yes, you have the initial transactional touchpoint at the store or online, something relatively impersonal and for many the only interaction they’ll have with the brand.

However, customers (especially in the fashion industry) are encouraged to continue to interact with a brand through social media platforms.

As we mentioned before when discussing channels, Zara has a very effective communication system in place. Not only can people instantly get in touch with the brand, but also engage with new posts, images, and collections uploaded to social media.

This personal approach to customer relationship building can, in some cases, lead to the natural growth of brand ambassadors and communities .

An attachment can also develop between customers and particular garments or accessories from one of their collections. The sentimental attachment to these products also creates another potential form of brand loyalty.

The relations with Zara's clients to give a Business Model Canvas where the 9 points to be developed are seen

Now that you’ve described how you are going to create real value for your customers, it’s time to look at how you plan to capture that value.

What are your revenue streams? Is it going to be a transactional, direct sales strategy ? Are you going to consider a freemium mode l, where you give a portion of your product or service away for free with the idea of converting later on down the line?

If you’re a SaaS company such as SalesForce or Strava , then it’s likely that a licensing or subscription revenue model will be more appropriate.

At Zara, it’s extremely simple. They make their money by selling clothes and accessories either at a store or online.

Zara business model canvas template for the development of Revenue streams within the 9 points to work

As you can see, we’ve filled in the entire right-hand side of our business model canvas. We touched upon:

Now it’s time to move over to the left side of the business canvas model and look at what we need, internally , to deliver our value propositions.

Key resources of the Zara Business Model Canvas

To start with, let’s take a look at key resources.

The key resources are all things you need to have, or the assets required to create that value for customers.

This could be anything from intellectual property (patents, trademarks, copyrights, etc.) to physical holdings (factories, offices, delivery vans, etc.) right down to finances (the initial cash flow perhaps needed to start your brand).

Another key resource every company needs to consider is its human capital . Are you going to need highly specialized software engineers? Or field-based sales teams?

They are relatively capital-heavy resources that need to be factored into your business model.

In the case of Zara, they are going to need a number of key resources if they hope to deliver their propositions:

Stock is vital for both online and offline customers.

If they are unable to supply their range of products and meet customer demands, satisfaction levels fall and they have a serious problem on their hands.

A large distribution network of brick and mortar stores combined with a strong brand name help mitigate these factors, as well as reinforce any ongoing marketing activities and communication efforts.

Finally, an efficient logistics process within Zara is critical, especially when you consider the complexities involved with such a large-scale operation.

They will require the necessary technology to analyze data on inventory, storage, materials, production, and packaging, with the staff to execute each of these stages and manage the delivery of the final products.

Zara business model canvas template where the Key Resources are developed

The next step is to define the key activities – the areas you need to be good at to create value for your customers.

To mix it up a little let’s take a look at a slightly different business in Uber .

Their key activities can be broken down into:

They need a fast, clean UX for their customers using the app, drivers to carry out their service, and the ability to both market the product and deal with any customer queries.

Zara’s key activities will differ to those of Uber. Some of the things they need to consider would be:

Design is a key activity as Zara’s value proposition is to provide stylish garments at an affordable price. Their collections need to be constantly updated to follow the latest fashion trends at the time.

To produce their collections Zara will also require manufacturing capabilities. Now Zara doesn’t own their own factories (we will get to that in the Key Partners section) but they still need to be involved in the garment manufacturing process.

Everything from fabric selection to pattern making, to detailing and dyeing affects the outcome of the final product which of course they have to then go on and sell.

The effective management of the retail and distribution channels (online, offline, shipping, and communication with providers) is also key. A breakdown in either of these activities, such as a poor relationship with an important provider will have serious consequences for the business.

Zara business model canvas template showing the key activities for its development

Most modern business models now require brands to build out and work with various key partners to fully leverage their business model.

This includes partnerships such as joint ventures and non-equity strategic alliances as well as typical relationships with buyers, suppliers, and producers.

A great example of a strategic partnership would be between ThePowerMBA and Forbes . In exchange for exposure of our brand to the magazine’s global audience, we provide expertise and content on high-level business education programs.

As we touched upon when discussing key activities , Zara requires strategic partnerships with many different providers if they are to design and produce their collections.

Another key partner is their major holding company, Inditex .

Inditex has several subsidiaries including Massimo Dutti , Pull & Bear , and Oysho . Being a subsidiary of Inditex means they share a consolidated balance sheet, stakeholders, management and control, and various legal responsibilities.

While as a subsidiary Zara is afforded certain freedoms when it comes to design, delivery, and the general running of the company, the overall strategy will need to be aligned with Inditex and its other subsidiaries.

Zara Key Partners business model canvas template where the eighth point is developed

The final step of the Business Model Canvas is to ask yourself, how much is it going to cost to run this model?

This includes some of the more obvious needs such as manufacturing costs, physical space, rent, payroll, but also areas such as marketing activities.

If you are unsure of exactly what to include in your cost structure take a look at a Profit and Loss statement ( P&L ) from a competitor or company in a similar industry to yours. You’ll find many items overlap such as research and development ( R&D ), cost of goods sold, admin expenses, operating costs, etc.

Once that’s done you should prioritize your key activities and resources and find out if they are fixed or variable costs .

As Zara is such a large, corporate business they are going to have both fixed costs (rent, payroll, point of sales personnel) and variables, such as costs associated with the fluctuating sale of goods, purchase of materials and, manufacturing costs.

Once you’ve completed these 9 steps, your Business Canvas Model should look something like this:

Business Model Canvas Examples

Hopefully, you were able to get a good feel for the effectiveness of the business model canvas with our run-through of Zara.

However, if you found it difficult to follow due to the stark difference between your industries, I’m going to quickly go through 3 more companies to demonstrate the tool’s flexibility:

Even if these business model canvas examples don’t align exactly with your industry, I honestly believe that studying different models gives you a competitive advantage in your professional career regardless.

If you’re currently employed by a company, you’ll better understand how your specific role helps the company achieve some of its “long-term” goals.

Alternatively, if you are a business owner yourself (or perhaps thinking of starting your own business) you’ll have a better understanding of your business and where potential opportunities lay.

I’m sure you’re familiar with our next business model canvas example candidate, Netflix .

The global media company offers an online streaming service of various movies, documentaries, and TV programs produced in-house or licensed 3rd-party content. Their success sparked a revolution in the online media world with the likes of Amazon, Apple, Disney, HBO, and Hulu all rushing to launch their own online video streaming platforms.

Netflix started life as an online DVD rental company, basically a web version of the more popular (at least at that time) “bricks and mortar” Blockbuster.

Co-founder Reed Hastings predicted as far back as 1999 that the future of media was in online streaming, saying “postage rates were going to keep going up and the internet was going to get twice as fast at half the price every 18 months.”

It wouldn’t be until 2007 that Hasting’s prediction would become true when Netflix, as we now know it, was born.

So let’s take a current look at their business model canvas:

Netflix business model canvas in which the 9 topics are taken into consideration

As you probably know, there are very few people out there who haven’t subscribed, watched, or at least heard of Netflix. There is content for everybody: wildlife documentaries, sci-fi movies, rom coms, action-thrillers, you name it – it’s there.

That’s why their customer segment can be classified as a “ mass market ” as the base is just so diverse.

All people require is a computer, TV, internet, and/or smartphone and they’re good to go. For most developed markets, that covers just about everybody.

Whether on the train to work, sitting in the car (if you’re not driving!), or relaxing at home in front of the TV, you can consume their online, on-demand video streaming service.

They also have a huge library of content for consumers to choose from, ensuring that people keep coming back, as well as increasing their mass-market appeal.

They also produce high-quality, original content to differentiate themselves from their competitors.

Most people access Netflix either through their website or mobile/TV App . Another popular channel that you may have picked up on is their affiliate partners .

You’ve perhaps signed up for a mobile, TV, and internet package where the provider offers Netflix as an extra to sweeten the deal, so to speak.

That would be an example of an affiliate partnership between Netflix and mobile service providers.

I doubt many consumers have had direct contact with Netflix unless it’s to resolve a subscription issue or general query. It’s very much a self-automated service – you download the app, select the program you wish to watch, and hit play.

Very simple, very effective.

Again, this doesn’t need much embellishment. Netflix generates money from the different tiers and packages put together in their subscription services.

This varies depending on the region to account for local markets, but on the whole, it’s sold at a low price point.

Originally, Netflix’s Key Resources would have been their unrivaled DVD collection combined with a cost-effective mail-order system.

Nowadays it’s undoubtedly the rights to stream online video content. Netflix has brokered deals with some of the biggest production studios worldwide.

Combined with their huge library of in-house productions , it’s more than enough to encourage customers to renew their subscriptions.

To help sustain interest in their product, Netflix understands they need to serve-up relevant content for each sub-sector of their mass audience. Therefore their machine learning algorithm selects content for consumers based on streaming habits (what they watched, at what time, etc,.) to personalize the customer experience.

This explains why over 80% of all content streamed on Netflix was cherry-picked by this algorithm, making it a Key Resource for their business model.

Also, Netflix accounts for a whopping 12.6% of global bandwidth usage . The literal capacity to stream their services must be met meaning bandwidth must also be included here.

Content procurement is arguably their biggest Key Activity. They need to find people to produce and deliver their original content, including actors, studios, writers, etc. as well as secure the licensing and streaming rights from 3rd party producers such as Sony, Warner Bros, and Disney.

Finally, they need a fast, easy-to-use application to host their online streaming service. This needs to be available for both TV and mobile devices if they are to deliver their “on-demand” value proposition.

K ey Partners

Seeing as Netflix’s entire business model is largely based around streaming 3rd party content, key partnerships need to be built with production studios . No content, no Netflix!

Also, as we touched upon earlier Netflix is one of the largest consumers of bandwidth worldwide. If the speed and delivery of their streaming service are to be continued then deals will also need to be made with internet service providers (ISPs).

Netflix’s biggest expenditures come from both their in-house content procurement and 3rd party licensing agreements . The high-quality standard of video streamed on Netflix is only possible due to the speed and performance of its online platform and application , which has additional costs of staff, software, etc.

To show you just how flexible the business model canvas can be, I wanted to throw in a slightly leftfield example. Vintae is a Spanish wine producer who, after a detailed analysis of the business model canvas, was able to innovate and disrupt one of the world’s most competitive industries.

As some of you may know, the wine industry is extremely competitive. It’s also steeped in history and tradition , making it very challenging for newcomers to grab market share, let alone think about year-on-year growth and revenue.

However, CEO “Richi” Arambarri looked at the traditional “ bodega ” business model and saw a chink in its armor.

A “small” innovation in the business canvas model helped them to become one of the region’s most important winery groups, with over 10 installations and a presence across all regional denominations (Rioja, Priorat, Rias Baixas, etc.) with year on year growth of 30% – practically unheard of in such a competitive industry.

So how did Vintae analyze the business model canvas to find a niche in their market?

To answer that question, we must first look at the traditional winery business model .

Traditional Winery Business Model with its 9 developed points

As you can see, the wine industry has historically been patrimonial. Vineyards and estates are passed down through generations with the winery responsible for all phases of production, clarification, and distribution.

The traditional winery business canvas model suggests you must be the owner of the winery/vineyard where the wine is “manufactured”, meaning physical assets are a key resource of the business model.

So, if you wanted to start producing a Rioja, for example, you’d have to set up your vineyard in the region.

This is monumentally expensive as you need to:

It’s here where Vintae saw their opportunity.

What if we move vineyard ownership across the business model canvas from key resources to key partners ?

By leasing the equipment and space of large wineries (of which there was plenty), they could still produce their wine but reduce the cost and exposure associated with land purchase, crushing equipment, huge storage tanks, vineyard maintenance, and their bottling line.

This enabled them to focus on their sales, marketing, and distribution channels to create a better brand experience for their customers.

Also, it afforded them more flexibility when creating new wines as they were no longer confined to the limitations of grapes grown on their vineyard.

The lightness of this new business model eliminates maintenance overheads, channels energy into personalizing the customer experience, and allows for unprecedented levels of growth in one of the world’s most competitive industries.

Vinate business model canvas with its 9 elements

Business Model Canvas Software

Although I did mention starting with a large whiteboard, sticky notes, and a pack of colorful sharpies there are several options in which you can digitize the business canvas model production process.

While I still believe the aforementioned process is extremely valuable (it gets your entire team’s input in a single hour-long session) you may decide it more viable for each member of management to pool their ideas digitally before sharing with the rest of the group.

If that’s the case, then take a look at some of the following software tools for creating your business model canvas.

Created by the founders of the business model canvas Alex Osterwalder and Yves Pigneur , Strategyzer offers a range of business model canvas templates for you to get started with.

If you opt for the paid model (there is a 30-day free trial period) they offer a series of various classes that teach you how to build and test different value propositions and business models.

A real-time built-in cost estimator analyzes the financial viability of some of your business ideas, identifying alternative areas you may wish to explore with your model.

All-in-all, it’s a great resource to play around with and test some of your business ideas, with the option to dive into further detail if you see fit.

Canvanizer is a free, easy-to-use web tool that allows you to share links between team members who are brainstorming ideas for a business model canvas, but working remotely.

Like Strategyzer, there are several business model canvas templates provided to help you get started with your analysis. The strength of this platform is its accessibility. Much like a Google Doc., several people can brainstorm on the same canvas simultaneously with changes being synchronized automatically.

A ThePowerMBA alumni, impressed by the simplicity and effectiveness of the tool, went ahead and created the free application Business Model Canvas Tool .

It’s an incredibly intuitive, and easy-to-use tool that allows you to create templates simply by clicking the + button in each building block.

Each business model canvas created can be downloaded and shared as a pdf. with the rest of the team.

If, after going through our 9-step guide on how to use the Business Model Canvas you’d like to learn more about different business model analysis tools , take a look at our alternative MBA business program .

As you’ll see, the course gives students a 360-degree view of business and management practices – such as engines of growth, segmentation and targeting, and value propositions.

I highly recommend you go check it out.

Regardless, I’d love to hear what you thought about this guide. Was it helpful? Would you like to see additional business cases analyzed from your industry?

Let us know in the comments below.


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Today’s post author is Victor Oyervides, retail business specialist with FFED. He shares information about one of the tools that our Enterprise Development team uses to support Iowa’s entrepreneurs with business startups: the Business Model Canvas. This article is the first in a series.

The Business Model Canvas is a strategic management tool created by entrepreneurs for entrepreneurs. It is a simplified, visual open-source tool, which is user-friendly, hands-on and a step-by-step guide.

The virtual “canvas” contains nine rectangles. Each represents a building block of all small business and non-profits. The nine building blocks are:

How it works

On the Business Model Canvas, an entrepreneur will organize, analyze, adjust and implement premises on a feasible business concept. The nine building blocks provide a pathway to understanding how the business concept will create value for value in return.

Entrepreneurs, small businesses, large corporations and non-profits all benefit from using this tool. Once you engage the tool, you may want to use it on all different types of business ideas or management projects.

The Business Model Canvas is usually printed out in floor-plan size or larger and pinned up on a wall. There a team can initially post all ideas corresponding to each of the nine building blocks. Afterwards, the team researches the feasibility of the business concept. It is time efficient and cost effective to test your hypothesis before launching a business, product or service. The team continues to evaluate and make adjustments to the Value Proposition according to Customer Segments feedback.

Victor Oyervides

The Business Model Canvas is not the finishing stroke to launching a business idea. But it’s a great step forward on the path to developing a business plan.

Watch for more information on Enterprise Development team tools in upcoming posts. If you have a question for Victor, you can reach him at this email , or call (515) 294-7517.

Business Model Canvas Tool: Part 2

Business Model Canvas Tool: Part 3

Learn more about our Enterprise Development program.

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Business Model Canvas: The Definitive Guide and Examples

What is the Business Model Canvas

Before 2004, entrepreneurs suffered from prolonged and cumbersome business plans. Alexander Osterwalder facilitated the creation of a business model by introducing the Business Model Canvas (BMC) .

By definition, it’s a visual template that illustrates various objects of a business model . Osterwalder’s original canvas includes nine elements, which we will have explained below in the article. They represent vital aspects of business survival.

Business Model Canvas Full

What to Begin With?

Once you decided to use the Business Model Canvas approach, you need to prepare the essentials:

The necessary tools depend on how you decide to brainstorm:

Why Choose Business Model Canvas?

What makes The Business Model Canvas stand out in an array of approaches to business model creation? Its 1-page nature drives the following advantages:

About the Nine Business Model Canvas Elements

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Let’s elaborate on what is behind the nine Business Model Canvas blocks:

1. Customer Segment

Customer Segments

Daily operations highly depend on customers and their behavioral patterns. That’s why customer segmentation is a must when creating a business model.

In this block, you need to describe the buyer persona. The description includes the following:

This is a basic list of points. You can add specific parameters. For example, software developers may identify the preferred device type. Already-established brands can also introduce visitors’ tiers that differentiate people according to their level of connection with a brand.

Read an in-depth article about customer segments here .

2. Value Proposition

Value Proposition

A value proposition is a brief description of your product and its ultimate value for a client. In other words, write down in a Business Model Canvas why consumers should buy your goods or services. Ideally, it solves a problem or drives additional value for an end-client.

Keep in mind that the wording should be precise and short. Don’t describe your value proposition in several sentences. Limit it to a single but eloquent phrase. Here is a good example from : “Fast, detailed, and entirely offline maps with turn-by-turn navigation – trusted by over 140 million travelers worldwide.”

Read an in-depth article about value proposition here.

3. Distribution Channels

Distribution Channels

Osterwalder, together with Pigneur, described five phases of channel development.

Read an in-depth article about distribution channels here.

4. Customer Relationship

Customer Relationship

A customer relationship strategy determines how your target audience interacts with your brand. You can choose from five types of customer relationships in terms of the Business Model Canvas:

Read an in-depth article about customer relationships here.

5. Revenue Streams

Revenue Streams

The next block of the Business Model Canvas is about determining where your revenue comes from. Here, you should consider the buyer’s persona to identify what the target audience is ready to pay for.

There can be several methods of monetization:

Read an in-depth article about revenue streams here.

6. Key Resources

Key Resources - Business Model Canvas

In the Business Model Canvas, key resources are divided into four categories. Here are they explained:

Read an in-depth article about key resources here.

7. Key Activities

Key Activities

Key activities included in a canvas are the business activities vital for work. They vary from industry to industry. Some design this block by uniting the activities into one out of three categories:

For example, software developers fall in the first category as they design new products, while an IT company with its own taxi service is attributed to the third category.

Read an in-depth article about key activities here.

8. Key Partners

Key Partners

Key partners are parties like suppliers who are vital to flawless business operations. In other words, a company can’t survive without them. There are four categories to include in the Business Model Canvas:

Read an in-depth article about key partners here.

9. Cost Structure

Cost Structure

All the mentioned above blocks of the Business Model Canvas aren’t implemented for free. Startups and enterprises spend money on production and accompanying services. To set realistic revenue goals, a company needs to estimate the costs first.

The costs vary depending on the industry. For example, some businesses have to cover R&D expenditures, together with production and post-service. Others, however, exclude this debit from the template.

Read an in-depth article about cost structure here.

Applications and Analysis

Once the Business Model Canvas is ready, you need to analyze it. For this, you should assess the canvas in terms of three points:

What to Do After?

After you have examined the canvas, you can integrate it into your daily routine. Here is how it can be utilized:

Besides, you can use the same technique in other areas. For example, if you have several customers, you can describe an approach to them with the help of the BMS.

Some Tips for Beginners

If you have never created the Business Model Canvas before, comprehending all the above-mentioned data may be hard. Here are five tips that will help to navigate across the template easier:

Software for Business Model Canvas

If you prefer digital solutions to traditional paper and markers, you can opt for software to create the Business Model Canvas. There are many useful tools on the web. These three, however, are the best:

What Are the Benefits of the BMC?

Businesses of all scopes choose the Business Model Canvas approach because of four core benefits:

What Does the Business Model Canvas Lack?

Although the Business Model Canvas is a popular and recognizable approach, many critics revolve around it. In particular, some executives criticize the model because of the lack of:

While it may bother some people, in reality, there is nothing wrong. The nature of the BMC doesn’t imply focusing on these aspects. Its ultimate objective is to facilitate the process of crafting business models. And the template includes the core blocks only. After all, the market and competitors’ external outcomes aren’t shaping the company’s inner structure.

Why Should Already-Established Companies Implement the Business Model Canvas?

Traditionally, the canvas approach is the prerogative of startups. But it can also be useful for already-established enterprises. The BMC covers the following tasks: Helps to identify gaps in the model and discover new opportunities.

As can be seen, the Business Model Canvas helps to effectively analyze the whole company or particular project, map out possible changes or gaps, and address them.

Real Examples of the Business Model Canvas

Examples help executives to grasp the basics of the BMC better. Here are two examples of canvases from different industries:

Airbnb is a provider of affordable accommodation around the globe. Its canvas may look like this:

Airbnb Business Model Canvas

LinkedIn is a professional social network.

Linkedin Business Model Canvas

The Business Model Canvas is one of the numerous approaches to business modeling. For more than fifteen years of existence, it has proved its worth in the corporate community. Despite some critics, the method is effective and illustrates the business plan precisely. Moreover, thanks to its visual feature, it’s easy to comprehend and assess.

Download a Business Model Canvas Template

Download our free tools below to create your own Business Model Canvas right now.







You may also be interested in the Value Proposition Canvas template , a complementary tool to the Business Model Canvas.

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The Business Model Canvas: A Quick How-To Guide

snacks business model canvas

Every company is a story. Anyone looking to invest in a company will need to know this story. The Business Model Canvas is one popular format for presenting your company’s story. Let’s take a look.

A canvas for your business model

Your company story isn’t a marketing ploy: it does not need to be new, innovative, or made-up. In fact, you already have your company story—it’s your business model. The business model canvas is one framework for sharing your story, or business model, with potential investors.

This strategic management framework was first developed by Alexander Osterwalder in the mid-2000s. While the original canvas is applicable to any business, regardless of size, history, or budget, additional canvases have popped up in various niches.

The simplicity of the business model canvas is what makes it so successful. The canvas is plain, looking much like a billboard or whiteboard. It’s comprised of nine criteria that express the important character traits for your business’ story, ranging from who you know to how you make money to what you have. The canvas acts as an advertisement to attract business investors or other founders.

Business model canvas

There are several benefits of using this framework:

Know your audience: 3 tips

Before we explore the nine criterion of your canvas, it’s important to consider your audience when creating a canvas. Your audience is potential investors, and these three tips will help strengthen your business model canvas.

Three Assumptions

When creating a canvas, you should assume these things about your audience:

9 criteria of the business model canvas

The nine criteria are subsets of four major categories in the business model canvas:


Each major category is comprised of one or a few criterion.

This section is all about the things you need— people, processes, technology, and partners —to run your business.

This section explores the value you offer.

This section is all about your customers: whether, where, and how you talk to them and they buy from you.

The finances section really wants to know your income statement. What are your costs and how do you bring in money?

Spend some time on the canvas: make it flow, edit each section, and present your company with a complete story.

Additional resources

For more on strategic business planning and aligning technology to your business, browse our BMC Business of IT Blog or check out these articles:

How to evolve IT to drive digital business success

When IT and the business are on the same page, digital transformation flows more easily. In this e-book, you’ll learn how IT can meet business needs more effectively while maintaining priorities for cost and security.

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These postings are my own and do not necessarily represent BMC's position, strategies, or opinion.

See an error or have a suggestion? Please let us know by emailing [email protected] .

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BMC works with 86% of the Forbes Global 50 and customers and partners around the world to create their future. With our history of innovation, industry-leading automation, operations, and service management solutions, combined with unmatched flexibility, we help organizations free up time and space to become an Autonomous Digital Enterprise that conquers the opportunities ahead. Learn more about BMC ›

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10 Best Business Model Canvas Examples For Your Inspiration

Have you ever listed out all important aspects to consider while launching a product or strategy? You must find that this process quite challenging since one paper is not enough to show all this information as well as the connection between them.

Luckily, there is still an effective way for you to focus on your product's most strategically important elements, which is Business Model Canvas . Many famous brands around the world have made use of it successfully.

In this post, we will bring about all things you need to know about Business Model Canvas as well as 10 Best Business Model Canvas Examples For Your Inspiration .

Let’s dive in with us!

What is a business model canvas?

Before digging into the best examples of Business Model Canvas around the world, let’s find out how the Business Model Canvas was designed.

Generally speaking, the Business Model Canvas is a summary that tells how the key drivers of a business fit together. It means showing the strategic details necessary to help a business get success within the market.

One important thing is that this summary's length is within one sheet of paper. Imagine when you include all this down in a document, and it turns into many pages to capture all information. This will make you hard to remember as well as waste time opening pages over pages.

When it comes to the Business Model Canvas, you have a smart and clear way to read and describe any company with any scale ranging from the largest business to just a small one with some staff members.

snacks business model canvas

While the categories or buckets included in a canvas can be adjusted according to your wishes, there are nine elements or building blocks that make up the canvas.

Each building block represents each key drivers and segments of a business. To fill in these blocks, you need to answer the following questions:

There is one thing to note before finding out what these elements detailedly are. That is the connection between the left side and right side of the Business Model Canvas. If you notice, all elements on the left-hand side of the canvas show the business's costs, while those on the right-hand side represent revenue generated for the business.

Now, it’s time to discover the definitions as well as meanings of 9 elements:

Customer segments

The first building block you should look at is Customer Segments . Here is where you will add in all the different customer groups that you will target. Besides naming these customer groups, you can also build one or more personas for each segment your company serves.

If you are confused about the information you should include when it comes to a persona, it is just a detailed description of each customer group you list. They can include what motivates your customers to buy products, what problems they are suffering that you can help, and perhaps the essence of who they are.

Many businesses make a mistake when assuming that customers exist for themselves to serve. In fact, businesses exist to serve their customers instead.

Depending on your business’ goals, you can have one customer segment or more. Many companies target only one customer group, but many serve two or even multiple. For example, the giant SEO company serves two customer segments, which are those performing searches and those working as advertisers.

In case you want to break down the advertiser customer group into many personas, there will be various kinds of advertisers that you can examine.

Value proposition

The second building block refers to Value Proposition . It means the values that your company or your service can bring to each customer segment. Before filling in this building block, question yourself what problems you can solve for each customer segment are as well as what needs you can satisfy. In other words, the value proposition means the reasons why customer segments buy from you but not from others.

snacks business model canvas

If you still find it difficult to define, here are some of the most common value propositions:

Next, let’s come to the way your products or services are given to your customers. It is Channels . It is about how you sell your products and how your customers want to be approached. Consider the way your company is reaching them at the moment before adding in the Channels building block.

There are two types of channels that you might concern which are having your own channels and having partner channels with someone else.

When it comes to the first type, having your own channels means a combination of all shops you belong to, all sales staff you are employing, or all your websites .

In terms of having partner channels with someone else, you have a wide range of choices, from using Google Adsense to sell your services to using a wholesaler or even partnering with affiliates to advertise your products. You can promote your product with a blog post, social media mentions, a viral video campaign, or a live stream (here is an example of simple streaming software , you could start with).

Customer relationships

snacks business model canvas

The following building block is about Customer relationships . Here you will enter the way you get, keep, and grow your customer base.

In order to enter details in this building block, you should understand your customer journey clearly. Question yourself on how your customers find out about you, how they decide to buy your products, how they purchase them, and how they manage after purchasing.

Revenue streams

Revenue streams building block refers to the sources where the money comes from. Here you will need to enter where your revenue is generated. Perhaps, this building block is the most confusing on the right side.

It is because you will need to find out the strategy as well as the campaign you will start to generate the most value from your customer base.

It looks at multiple aspects. You might consider a monthly subscription fee or a one-time fee for your customers. You might also think about giving away products for free so that your customers will decide to upgrade to the paid premium product.

Take Advertising on Google as an example. In order to be displayed in front of users and customers, advertisers need to pay Google money and send it their buying intent together with ads information. As an audience, only when you search for something with purchasing intent will you see ads. On the other hand, you probably will not see anything related to advertising if you search for something without purchasing intent.

As you can see, we have gone through all building blocks on the right side which are related to customers. Now, it’s time to work on the building areas to the left of the Value proposition which shows the costs to the business.

Key resources

The first building block to concern when it comes to the left hand is Key Resources . That means the main strategic assets that are needed to enable your business model to work.

snacks business model canvas

There are four categories of resources, they include:

Key activities

The next building block is Key activities which refer to the most important strategic things you Must do to make your business model work. Remember that the Key activities block should be completely relevant to the value proposition block.

Check to see whether your Key activities are relatable to your value proposition or not. If they aren’t, then something must be changed. There will be one or more activities you regard as the most important but generate no values or revenue.

There are three main types when it comes to key activities. They are:

Many businesses go in the wrong direction while listing all the activities that are done by their businesses. Prevent yourself from that by only entering activities that are main to delivering your value proposition.

Key Partnerships

Key partners building block is quite similar to the previous one. You also list the activities which you view as important. However, they are not done on your own but by working with suppliers and partners to make the business model work.

Take Spotify as an example. The company let updating its platform be the key activity. Nonetheless, Spotify cannot produce the music it provides. Therefore, the company needs to list its deals with record labels and publishing houses in the Key partners building block.

snacks business model canvas

If you are wondering why your business should create a partnership, it is because of economies of scale. What’s more, that can help prevent yourself from risk and uncertainty which leads to crisis. Finally, it brings about the acquisition of resources or activities.

Cost structures

The last building block is Cost Structure in which you map key activities to costs.

One thing to keep in mind is making sure all the costs you list are related to your value proposition.

Additionally, Cost structure should be the last building block you fill in. Therefore, after defining your Key Resources, Key Activities, and Key Partnerships, it is necessary to find out the most important costs as well as the most expensive ones.

Why might you want to create a business model canvas?

You might wonder why creating a business model canvas is crucial and how you will benefit from this canvas when starting your own business. There are various answers to your questions but here are the three most noteworthy:

Roadmapping rapidly

A canvas can be handled in a short time, even with the sticky-notes. You do not need to make every effort to put down everything about your product plan, you can simply list out the features, the necessary content.

However, it will be useless if you just stop at these highlights. The next step is to convert the canvas into your roadmap with your product’s details.

Time saving

Before the business model canvas appeared, people who wanted to get their product to market were familiar with the old structure of citing a business model. On the other hand, the issue with this traditional method was that it was hardly accurate by the time the writer completed the draft.

It is also accessible to explain this situation as this model consisted of important elements such as detailed cost estimates, revenue projections going years into the future, and permanent plans for growing the staff, which are all changeable in just a short period of time.

When it comes to products, these plans are considered MRD (Market Requirements Document). This particular paper is lengthy, intricate, and can barely be true as soon as it’s finished.

Luckily, a canvas is here to help you overcome these obstacles. You can quickly combine a canvas that is capable of showing your strategy and your brand’s current status. And in case there are changes, you will need less effort and time to edit.

Easy to swivel

It is so evident that the market is at no time stable. There are always new things adopted and some old ones have to be eliminated, which require you to be ready for any changes, to swivel due to reality.

Therefore, a canvas should be your priority. It is so sharp and top-level that you can easily adjust if needed rather than MRD or traditional business plans. With the length of just one page, a business model canvas plays a vital role in your brand guiding strategy.

Moreover, you can instantaneously and rapidly update your approach or any features due to your market observation.

10 examples of business model canvas in different industries

Example #1: a lemonade stand.

snacks business model canvas

A lemonade stand can be a great example of your initial approach to a business model canvas. It is likely the most understandable model for one's first experience with starting a business.

In this model canvas, you can clarify your customer segments, possibly your neighbors, walkers, family, and friends. However, they are not limited to your customers; they can be your partners, suppliers, resources as well.

Therefore, you need to write down the proper ways of reaching customers in the Channels building block. And Facebook groups, booths, or stands are considered the most suitable choice for a lemonade stand. Turning to revenue streams, it is quite simple with a lemonade stand because they mostly come from a finite price for a drink.

Example #2: Skype

snacks business model canvas

As can be seen, Skype provides users with 2 value propositions: free Internet & Video calling and cheap calls to phones. These propositions correspondingly help Skype attract 2 customer segments: free users and users who want to call phones.

In Skype’s model business, there is a majority of users who make free calls via the Internet, and just 10% of users choosing the prepaid service. We can explain this business model by looking at key partnerships, key activities, and key resource building blocks.

Key partnerships, key activities, and key resources are the three elements that allow Skype to offer low-priced and free calls. Unlike other traditional telecoms providers, Skype does not have to build and manage a huge and complicated infrastructure to work effectively, Skype just relies on backend software and the servers hosting user accounts, which is called the freemium business model.

Example #3: Gillette

snacks business model canvas

In Gillette’s case, their business model follows the business model pattern called “Bait & Hook”, the pattern that is followed by many SaaS (Software as a Service) companies.

Gillette gives their customers a cheap or even free of charge original offer, a razor handle. This offer is the bait that enables customers to experience and get acquainted with Gillette's products and makes them more likely to buy related products, the blades.

In the above diagram, the size of the arrow is in direct proportion with the revenues generated. All Gillette’s revenues are from just one customer segment, which mainly depends on Frequent Blade Replacements.

Pay attention to the left corner of Gellettes Business Model Canvas, it will demonstrate the consistent relation between all major costs and the value proposition. For instance, Gillette strengthens its brand by spending money on marketing and assures the brand’s uniqueness in the blade and handles technology with R&D costs.

Example #4: Google

snacks business model canvas

When it comes to business model canvas, we will not want to miss the outstanding example of Google.

Google’s business model is many-sided, which means their customer segments are not exclusive. Google has separate groups of customers, but these groups are related to each other.

In Google’s model, it is a platform whose customers are search users and advertisers. If there are no search users, there will not be advertisers and vice versa, search users will not be able to freely take advantage of this platform without advertisers.

As we can see, Google displays ads in search results or on web pages which costs advertisers an amount of money. With this money, content creators are paid and search users can browse free of charge.

Google’s kind of business model creates a network, which means the ads it displays to web users are directly proportional to advertisers and so as the content owners.

In terms of key resources,, Adsense (for content owners), and Adwords (for advertisers) build up Google's search platform. Hence, managing the existing platform and its framework must be Google's key strategic activities.

It is clear that one of their key partners is content owners, without whom there would not be search users or advertisers. Another partner of Google is OEMs (Original Equipment Manufacturers).

OEMs (Original Equipment Manufacturers) provide Google with mobile handsets that allow this huge platform to operate its system at no charge. And to give back, when users of these handsets surf the Internet for information or entertainment or whatever, they choose Google’s platform by default. This process will consequently lead more web users to the ecosystem, meaning that more revenue will be raised.

Example #5: Airbnb

snacks business model canvas

Another example is Airbnb, a widely-known online marketplace that lets people rent out their properties or spare rooms to guests and then Airbnb takes 3% commission of every booking from hosts, and between 6% and 12% from guests. And now, it is time to figure out its business model canvas.

It is clear that Airbnb has 2 separate customer segments: guests and hosts, but they can be divided into other small categories with particular characteristics. Airbnb's value propositions also follow the same pattern: they give their customers more affordable choices than traditional hotels and provide customers with deluxe or fancy services.

About Airbnb’s revenue, as mentioned above, their main revenue is from the fees that they charge both guests and hosts.

Example #6: Uber

snacks business model canvas

Our next business model canvas is Uber, the world's largest taxi company, which owns no vehicles. Uber is an excellent illustration of a business model canvas as it is an outstanding business with such representative innovation in technology.

As can be seen, Uber’s customer segments include 2 big categories: drivers and riders. In drivers, Uber targets 2 particular groups: unemployed drivers and drivers looking for part-time jobs, which consequently lead to their corresponding methods of approaching customers. It means, for example, to attract unemployed drivers who are likely to live in areas with high unemployment rates, Uber has to use Word of mouth as a channel.

Example #7: LinkedIn

snacks business model canvas

LinkedIn is the online platform that enables you to find the right job or internship, connect and strengthen professional relationships, and also learn the skills you need to succeed in your career. It means LinkedIn provides users with diverse services as shown in the Value propositions building block.

Therefore, in their business model canvas, LinkedIn pointed out 3 big customer segments: recruiters, professionals seeking to network, and marketers.

Turning to LinkedIn’s revenue streams, LinkedIn’s revenues mostly come down to these 3 sources: freemium business model, hiring solutions, and marketing solutions. And as a result, they have to consider developing the platform as the most important activity.

Example #8: Amazon

snacks business model canvas

Amazon’s business model canvas is an example that we should not miss in the e-commerce field. Amazon's model's most remarkable element is its key activities, which help Amazon stand out among many competitors.

As we know, time and money are important to every buyer and so is Amazon.

Hence, Amazon’s key activities are quick fulfillment processes, in-time delivery, and shipping systems allowing for Amazon Prime to deliver orders within 1-2 days, and R&D to streamline and improve the efficiency of fulfillment centers and other projects (e.g. Amazon Grab & Go stores) to lower costs.

About Amazon’s customers, there are two main groups that use Amazon’s products and services: business clients and retail clients, which means they have to develop strong and complicated ways of serving their customers.

Example #9: Netflix

snacks business model canvas

Many companies compete against Netflix, such as Amazon Prime Video, Apple TV+, Disney+, HBO, Hulu, Vevo, and Youtube. However, Netflix is still doing well and developing its business worldwide with such a unique and effective business model canvas.

Netflix uses 6 key resources: brand, apps, platform, employees, filmmakers, and prizes, to attract its customers. Recently, Netflix's content production activity shows its strengths as Netflix series are welcomed by large audiences and are gradually dominating the film market.

Example #10: Tesla

snacks business model canvas

Tesla is a business model that chooses technology as a benefit. As shown in the business model canvas, one of Tesla's customer segments is the green buyer which directly leads to the corresponding key activities. They have to concentrate on research and development, design, electric power technologies, car manufacturing, and also charge point infrastructure to provide customers with synchronous solutions and services.

If you are about to start a business, make sure that you will not forget about the business model canvas. The business model canvas, which consists of 9 elements will help you determine what is crucial for your business regardless of whether your business is big or small.

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Business Model Canvas – Food Delivery Apps

snacks business model canvas

The Food Delivery Business is booming. But there is a catch … a fairly dramatic one; they don’t actually make money .

T he question is why then are investors pouring $Billions into these companies. That’s what this edition of the Business Model Canvas is about.

Why are the food-delivery companies losing money?

– subscription –, – restaurant –, – grocery –, fundraising and valuation, food delivery value proposition, business model analytics, top 3 – learn more, how do delivery apps make money.

There are many big, publicly-traded Delivery Apps in the food delivery business, worldwide, but let’s list the top 3:

These companies above have also acquired several competitors themselves (ie. Grubhub, Skip The Dishes, Postmates, +). Yet with all of these companies in the market, they all have effectively the same business model :

Food Delivery Business Model - Visual Diagram

As you can see in the diagram above, it is a 3-sided marketplace between the customer, the restaurant/merchant, and the delivery driver. On any given order between the customer and the restaurant, the Delivery App will charge the customer a Flat Fee , and then will charge the restaurant a commission on the Order Value that typically ranges from 20-40% (30% standard, except in jurisdictions where the fee is capped). The Delivery Driver then gets a fee that includes factors such as distance drive (ie. Mileage) and other factors (depending on the app, restaurant partner, etc). It is a messy business model to analyze collectively, but in the end the Unit Economics look something like this:

Uber Eats Unit Economics

These businesses all lose money on the margin; however, as illustrated in the example above that Net Revenue ( ie ‘Net Revenue for Uber Eats’) is exclusive of all the costs associated with Uber’s Delivery business (ie. Cost of Revenue). You can see from their recent Q4 2020 Earnings that they lose money ( EBITDA – essentially, the profitability of the business line).

Uber Q4 2020 - P&L

ALL of the companies, public or acquired, lost BIG money in the first 9 months of 2020, and yet we have seen investors push stocks like DASH (IPO in Q4 2020) to record highs. For example, Uber Eats was losing ~$3.36 per order in mid 2020.

There are no absolute answers, but here are a few plausible ideas:

Uber Eats Membership Guidance Q4 '20

Uber Eats emergent Grocery delivery business “ … had gross bookings exceed $1 billion on an annualized run rate in September. ” In addition to that, their acquisition of Postmates helped them increase their brand presence and add “DaaS” partners to their Grocery delivery line (~18% of December orders).

Whichever explanation ( or combination of explanations ) you believe is most likely – cost optimization for future profitability, business model innovation (subscription), or adjacent market entry (ie. Grocery) – one thing is for sure: the 1st version of the Food Delivery business model is broken.

Total Meal Cost relative to Restaurants - Food Delivery

Community-Centric or Commercial Partner Strategy ?

These businesses work with Commercial Partners to help scale their offerings. Given that this market is itself an ecosystem (consumers, restaurants, grocery strores, drivers, etc), several partnerships by Uber Eats , DoorDash and others were created in order to increase the breadth, depth, and convenience of their respective offerings. In 2020, as a result of the pandemic, growth in the market exploded.

Food Delivery - YoY Growth 2020

Competition up to this point in the history of the market has mainly been focused on increasing market share ; going forward it is likely to focus on profitability and innovation.

Meal Delivery - Monthly Sales - January 2021

There are a few different layers to potential partnerships, but almost unlimited options of firms (big and small) that Delivery Apps can form partnerships within those layers.

Uber Eats Pass

All three apps say they have spent millions of dollars to support small restaurants through grants and free promotions. DoorDash said it waived commissions for eateries with five or fewer outlets in the early months of the health crisis. Grubhub said it suspended commissions for independent restaurants for the first few weeks of the pandemic. Uber Eats said it has halved commissions for restaurants doing their own deliveries through mid-this year. WSJ

We can see that there are really no limits to the types of commercial-partnership strategies that these companies can deploy, especially now that they are public and have $Billions of dollars in the bank. None of these strategic moves have up to this point, however, solved the problem of profitability. It will be interesting to follow this space in the years to come, as a divergent strategy is likely what is required to break away from the pack and expand the margins in the business model.

Interestingly, one of the big problems that plagues this category is the lack of customer loyalty . The Subscription model combined with increasing Loyalty rewards may help rectify this, but another area where we may see some divergence strategically is to implement a more community-centric program (whether for consumers, restaurants, both) that brings people closer together (digitally, physically, both) and increases loyalty.

Despite overall industry growth, the battle for customers is getting more intense because fewer of today’s diners are loyal to just one service. (Grubhub’s CEO has cited “promiscuous customers” as a hindrance to his company’s growth.) In the fourth quarter of 2018, 68 percent of Grubhub’s customers didn’t use other meal delivery services. Two years later, it’s fallen to 46 percent, as competing services woo customers with different restaurant offerings and promotional prices. Second Measure

Outside of Uber Eats, which was incubated within UBER (a public company), the companies mentioned above had raised large amounts of venture capital before a wave of consolidation (via Mergers and Acquisitions) hit the market in 2019 and 2020.

After Amazon invested $575 Million in UK-based Deliveroo, UK-based JustEat merged with Dutch-based in a transaction valued at £6.2 Billion (~$7.8 Billion) in April 2020. JustEat Takeaway then announced an all-share deal to acquire US-based Grubhub in June 2020 for $7.3 Billion.

DoorDash IPO’d in December 2020 and raised $3.37 Billion. Roughly around that same time, UBER finalized its acquisition of Postmates for $2.65 Billion.

The publicly-traded companies (DASH, UBER, TKWY) currently trade at, or near, the peak of their valuations. With $Billions in the bank and continued investor interest, they continue on their aggressive acquisition sprees. An example is Uber’s recent acquisition of liquor-delivery service Drizly for $1.1B in cash and stock.

Food Delivery Apps Business Model Canvas

A business model is defined as:

“the rationale of how an organization creates, delivers and captures value.”

Alex Osterwalder et al invented the Business Model Canvas to help individuals and organizations conceptualize how to analyze, create, and develop business models.

On-demand food delivery service from local restaurants and grocery stores

Food Delivery - Business Model Canvas

View Full PDF

Business Modelling - ARPU, CAC, LTV

As we can see throughout this post, the Food Delivery market (built around restaurants) is a rapidly-expanding, high-volume market with potential for future innovation around Subscriptions and expansion into adjacent markets like Grocery . But it also extremely competitive and unprofitable, meaning we should think about certain Metrics/Analytics that can help us make sense of the trend in this industry going forward.

When we look at the DoorDash S-1 for example, they continually talk about GOV (Gross Order Volume) increasing and a shift towards a positive Contribution Margin in 2020.

Door Dash S-1 - Contribution Margin on Delivery

Uber’s Q4 2020 Investor Presentation shapes a different narrative, one built around shrinking EBITDA losses on a Quarterly basis and trending towards profitability , with a bright future around Subscriptions.

Uber - Food Delivery EBITDA 2020

These narratives, however, are company-driven and hard to break down into Business Model Analytics .

Below of some Metrics/ Analytics that could be used to break down how the business model is evolving.

Caviar Customer vs. Competition - spend per order

Meal Delivery - U.S. Customer Overlap

The overall pattern we are looking for is if the companies can monetize the loyalty they have built and increase the Average Order Values (AOV) on an individual customer level. If these companies have to continue to spend money on Sales & Marketing to acquire customers (CAC) and lose money on a per order basis, they will continue to lose money in the long run despite the way the financials are trending (losing money on each order, net). Clearly customers ‘switching’ and using multiple apps is still a big problem, so these Subscription/Membership programs will be interesting to follow; they can increase AOV and Take Rate, but only up to a certain number of orders per month (~5), so those programs need to be optimized.

Business Model Canvas – Restaurant 2.0

Business Model Innovation – eGrocery

Strategy & Grocery – Thrive Market

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How to Use a Business Model Canvas to Test New Ideas [Template]

This article is only for educational purposes and does not constitute legal or financial advice. Make sure you consult a professional regarding your specific business needs.

As a business owner, it’s essential to think about what’s next for your business , and validating those ideas is a vital part of success. While business plans can be a helpful blueprint for the future, they can take weeks or even months to complete. Being nimble allows you to meet the fast-changing needs of customers. A business model canvas is a valuable tool that can help you explore these types of new ideas in the leanest possible way.

Developed by Swiss entrepreneur Alexander Osterwalder and Belgian computer scientist Dr. Yves Pigneur, a business model canvas is a living document that quickly shows how a business makes money. But instead of being a 40-page plan, the tool is a concise, one-page exercise that allows you to visually analyze a new stream of revenue and plan out your new direction in a scalable way.

For example, a bakery owner who is experiencing a decrease in foot traffic might use the business model canvas to test out the viability of offering bake-at-home cookie kits. Doing this drill can help determine if the business has the kind of clientele and brand necessary to support the pivot, offering a quick way to sketch out a plan to execute.

The business model canvas, explained

A business model canvas includes nine sections that work together to help you assess and facilitate new ideas. Here are the sections, along with details on how to fill each one out.

Key partners

Identify your current key partners, like suppliers, distributors, raw material manufacturers, shipping companies, and other people that help you run your business.

If you operate a coffee shop, for example, your key partners might include your bean supplier, paper goods distributor, and pastries provider. Can they give you the support you need to execute the new idea? If you’re a coffee shop owner who is considering adding fresh-squeezed juice to the menu, you may need to seek new partners who can help in ways your current connections can’t.

Key activities

List the specific activities you perform every day. For example, if you own an online toy store, your key activities might be to source new inventory for a certain demographic, market your business on Instagram, package and ship orders, and manage seasonal employees to help process orders.

Now, figure out the critical activities that need to happen to launch your new idea, and see if you have the bandwidth to do those things. If you’re looking to develop a new product lineup, key activities might be to design the product, purchase the equipment needed to create prototypes, and then test it out with customers. Looking at these new key activities, do you have time to get your new business model off the ground? If not, what can you shift to make it happen?

Key resources

Determine the resources you need to deliver on the new idea, like staff, money, time, or real or intellectual property. If you’re a yoga studio owner who is considering adding pilates classes, for example, you may need to hire a new instructor or purchase new equipment.

By understanding the key items you need, you can determine if you have the resources required to launch and sustain the new model.

Value propositions

Define the value the new products and services will deliver to your customers. You want to make sure you are addressing a real need.

For example, are coffee shop customers already asking for juice? And do yoga studio clients want to add pilates to their practice? You will need to convey the value of the new business model to customers and prospects. Identify the pain points your new idea addresses and how you will best share its benefits with customers.

Customer relationships

Once you launch the new business model, determine what customers will expect from you. For instance, do you want your clients to choose classes on their own or do you want to give them dedicated support and recommend rosters based on their needs? Once you decide on the types of relationships you want to have with your customers, assess how you will establish and maintain that relationship to sustain your new business model.

After filling out this section, you may need to add members to your support team or train employees to take on different roles , like social media or delivery.

You deliver your products and services through various channels, such as a brick-and-mortar location or online. Will your current channels support the delivery of the new idea?

You also have to ensure that the channels support how or where your customer will use your new products and services. If you’re the bakery owner, for example, you would have to determine how to get the cookie kits to customers, which could include delivery or curbside pickup .

Customer segments

Your new idea should target a specific segment of your customers. Identify who might be interested in your new offering and think through how you can reach them.

As a hair salon owner, for example, you might think that customers with young children would be interested in birthday party packages. Before you launch your new model, get feedback from this segment to measure demand and need. Consider forming focus groups to test the idea.

Cost structure

Identify the costs associated with creating and delivering your new value proposition. This might include fixed and variable expenses, like materials, employee hours, and new technology. Once you fill out the key resources, key partners, and key activities blocks, you’ll be better prepared to figure out the costs associated with your new idea.

Understanding your costs will help you with pricing and determine if your business model will have enough of a profit margin to make it sustainable.

Revenue streams

Finally, determine how much customers will pay for the value you provide them, knowing your costs will help you set your pricing. Make sure your profit margin can sustain the new model and provide a good return on investment.

Try this business model canvas template

To help you validate your potential pivot, open up this business model canvas template to help you link the blocks together.

When you’re ready to test a new idea, start at a high level, including only the most important information. The initial exercise should take about 20 minutes.

Once you believe the idea is viable, validate your assumptions by talking to existing and prospective customers. You can also walk through the model with your team to get their input. Test the concept and use the information you gather to tweak or change the model. This should be a fluid document.

When put to use, a business model canvas can offer insights and advantages to help you grow your business. The visual representation offers a way to quickly recognize potential gaps so you can modify your plan in real time. It also provides a way to understand how sections are interrelated so you can ensure that they are working together holistically.

A business model canvas is a powerful tool to have in your toolbox. The birds-eye view will help you save time and resources on new ideas that might not be worth the investment and can help green-light the new idea that helps take your business to the next level.

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Business Model Canvas Template

The executive summary of a business

What is the Business Model Canvas?

The business model canvas is a strategic planning  tool used by managers to illustrate and develop their business model. The business model canvas template clearly identifies the key elements that make up a business. Additionally, it simplifies a business plan into a condensed form. In this way, the business model canvas template acts like an executive summary for the business plan.

Corporate Finance Institute®’s Corporate & Business Strategy Course has more tools that you can use to manage and improve your business!

snacks business model canvas

Download the Free Template

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History of the Business Model Canvas

The business model canvas template was originally introduced by Alexander Osterwalder in his 2004 thesis, “The Business Model Ontology – A Proposition in a Design Science Approach”. Since then, the business model canvas template has been taught at business schools and iterated upon to fit more niche businesses.

Structure of the Business Model Canvas Template

There are nine main building blocks in the business model canvas template:

The following is a breakdown of each of these nine elements. These elements all link and work with each other to ensure the success of the business.

#1. Key Partners

Key partners are the companies or people your business works with to create a strategic relationship. A few examples of key partners are suppliers or distribution partners in the supply chain .

Here are a few things to consider about key partners:

#2. Key Activities

Key activities are specific activities or tasks that are fundamental to the operation of your business. An example of a key activity would be the procurement of fresh produce in bulk for a restaurant.

Here are a few things to consider about key activities:

#3. Key Resources

Key resources are the assets necessary to operate and deliver your value proposition. For example, a diamond mining company cannot operate without mining equipment . Alternatively, an automotive company cannot operate without the human capital and expertise that goes into designing cars.

Here are a few things to consider about key resources:

#4. Value Propositions

Value propositions are arguably the most important element of the business model canvas template. The value proposition determines the fundamental offering the company is trying to give its customers. It is the primary driver of business operations. For example, Spotify’s value proposition,  “Music for everyone.” , eloquently states its mission and offering. Spotify wants to be a music streaming platform that has music selections for everyone.

Here are a few things to consider about value propositions:

#5. Customer Relationships

Customer relationships are the different types of interactions a company has with its customers. For example, a designer suit company will provide significant help for the customer, tailoring to their needs and working directly with them to create the suit they want. Conversely, telecommunications companies often have poor reputations and customer relationships as many practice aggressive and predatory sales practices through their call centers. Compared to telecommunications companies, the designer suit company has significantly richer and more fulfilling customer relationships.

Here are a few things to consider about customer relationships:

#6. Channels

Channels are the different structures and methods that are used to deliver your company’s product and value proposition to its customers. Channels encompass all of a company’s supply, distribution, and marketing channels. It is important to consider all channels of a company and make sure they are functioning cohesively. For example, a company like Amazon needs to consider how its fulfillment centers and shipping services are integrated to send out timely shipments.

Here are a few things to consider about channels:

#7. Customer Segments

Customer Segments are the different types of customers that a company manages. A company that produces different products will need to interact with different types of customers.

An example of this would be airline companies. Airlines offer tickets for economy, business, and first-class customers. First-class passengers have access to exclusive benefits and luxury travel arrangements. Conversely, economy passengers are provided much less support, thus costing less, but also coming in significantly larger amounts.

Here are a few things to consider about customer segments:

#8. Cost Structure

The cost structure refers to how a company spends money on operations. It consists of the company’s key costs and the company’s level of focus on costs. If a company is cost-driven, it focuses on minimizing costs and, thus, prices for customers. Alternatively, if a company is value-driven, it focuses on creating value for its customers, with less focus on cost.

An example of this would be a comparison between fashion retailers, Forever 21 and Gucci. Forever 21 is a fast-fashion company focused on delivering the newest styles at low costs – a cost-driven company. Alternatively, Gucci is a luxury brand focused on delivering high-quality clothes and accessories designed with the latest trends in the fashion industry – a value-driven company.

Here are a few things to consider about cost structure:

Check out CFI’s course on Budgeting and Forecasting Course to learn more about estimating future cash flows, revenues, and expenses!

#9. Revenue Streams

Revenue streams are a company’s source of cash flows . They are the final element of the business model canvas template. Revenue streams are the different ways your company’s value proposition generates money. A company might have multiple revenue streams. For example, Apple has multiple revenue streams between its variety of products and its services, such as Apple Music.

Here are a few things to consider about revenue streams:

Example of a Business Model Canvas

Here is a simple example built for an automotive company using our business model canvas template!

Business Model Canvas - Automotive Example

Additional Resources

Proper financial management is the backbone of any business. Corporate Finance Institute has resources that will help you expand your knowledge, advance your career, and manage the financials of your company! Check out the helpful CFI resources below:

snacks business model canvas

Home Blog Business What is a Business Model Canvas? Quick Guide + Examples

What is a Business Model Canvas? Quick Guide + Examples

What is a Business Model Canvas

Based on the work of Alexander Osterwalder, a Business Model Canvas , or BMC for short, is a diagram used to visualize a business model; it allows structured organization and a quick method of evaluation and reflection on the effectiveness of a Business Models. The use and study of Business Model Canvas Examples allows to understand it in a complete way and apply it to different types of organizations.

The Role of the Business Model Canvas

1. customer segments, 2. value propositions, 3. customer relationships, 4. channels, 5. revenue streams, 6. key activities, 7. key resources, 8. key partnerships, 9. cost structure, the power of a bmc in entrepreneurship: visualize the business model, mcdonald’s, how to utilize a business model canvas for your success, business model canvas powerpoint templates.

Whether it be in small business entrepreneurship or large corporate product launches, the business model sits at the center. The one thing that stands at the very heart of daily operations of an organization, a model dictates where the opportunity lies and how the company effectively acts on it at each step in the process.

The very best professionals will have all of this knowledge and action driving their decisions. However, the original business model one may follow may not always be applicable to the obstacles that an organization faces, thus it’s incredibly useful to fully display organizational structure and operations.

The Basics of the Business Model Canvas

Whether one is creating an all-new business model, comparing a pre-existing model, or adjusting a model to improve value, the BMC excels in keeping anyone invested in the business on track without wasting time and focus. By displaying only, the most critical pieces in business operations or a product, this tool is both a time saver and a method to sharpen your awareness of expectations vs. reality.

There are nine sections in a BMC, each containing a specified topic of information that composes the core of any business model.

PPT Template Business Model Canvas

This section contains the information related to the core target audience that you are selling towards. Simple and traditional segmentation analysis must be done to identify the top segments of the model. Start simple with questions like Which are the demographics of the major customer groups being targeted? Why are they going to be interested in the product or service? In essence, how well does the model comprehend who is being sold to? It is crucial that you identify clearly the segments as when facing reality, you will need to focus only in a few (1 or 2) to really test your model without a full operation in place.

Create a list of the unique business value propositions you will offer. Why is the idea or company valuable? What makes it stand above competitors? If there aren’t any direct competitors, what gaps are being filled in given markets?

This section could be extremely lengthy, depending on the business model, but should only contain the most central concepts at the heart of the model that attract customers or generate revenues. This section will contain the aspects of the business that relieves a customer pains. If you’re struggling to identify what is most important, consider using a Value Proposition Canvas , another easy-to-visualize tool that helps establish your target audience with your strengths. Focus on solving a real pain for the segments identified.

The information of this section should refer to how to connect segments and the value proposition? During the analysis, you should be asking questions like How are customers convinced that your product or organization has the advertised special qualities? What methods are used to interact with them? How does an audience engage with each strategy in the product lifecycle? Additionally, how is customer engagement tracked?

Once the customer is convinced of the goods or services, how would you deliver it? This should include every step of the process it takes to make the financial transaction and value delivery possible. Is there a separate supplier? Who distributes the product? How is it displayed? Think about what the model requires from start to finish in order to make a sale.

If the customer connects with the product or service, and they want to proceed with doing business, then how does the actual exchange of money happen? How is the cash flow tracked? Are there any middlemen between the sale and the income to the business?

Business Model Canvas Diagram for PowerPoint

Source: Editable Business Model Canvas PowerPoint Template

This section should include specific activities that the organization will do to create value. Unlike the Value Propositions, it’s not just about a new product or business practice, but rather the day-to-day operations that each team will take.

Similar to Key Activities but focusing on assets that are used. Is there a special supplier? Is there access to any materials or a local storefront that puts you in an advantageous position? Do you have a special intellectual property or patent that introduces a new knowledge into the niche?

For areas that may be lacking, or areas that are too costly for the business to manage by itself, what can be outsourced to partners to focus on? Which areas would it be more cost efficient to hire from supporting businesses? Specifically, identify model strengths, maximize time and money on them, and move identified weaknesses to connected partners that can address them better or solve them altogether.

Finally, what are the major expenses in the model? Are they a flat fee, or are they a variable cost? This may factor into previous sections, like key activities, resources, and partnerships.

Additionally, how does this relate to the Revenue Streams? How will the predicted costs vs. the actual be monitored? Most importantly, what will be done if costs outweigh the incoming funds?

Creating a Business Model Canvas involves analyzing each of these sections individually and as a whole, and connecting the dots between them.

Introducing a new business or product to the world is no small undertaking, especially when you consider how much competition and other new ideas are thrown into the world on a regular basis.

This also means keeping the model current and responsive. A business model, after all, is only a well-educated guess on how to generate success from a demand. If reality does not match up to the prediction, then even the very best business models are useless. A BMC is your abstract representation of how a business delivers value to customers to help them solve problems.

Steven Blank’s book to entrepreneurs and business leaders, ‘Four Steps to the Epiphany’ , demonstrates the difference of those who watch and listen to their model in action, and those who convince themselves that their business model is flawless, and the world will adjust to follow it instead. The fact is, you may have the most amazing ideas in the world, but it won’t matter if you aren’t paying attention to unforeseen challenges that arise in between conception and actualization of a successful model.

The BMC is an excellent tool to get away from the guesswork, and out into the metaphorical streets. It allows an individual or team to compare expectations with reality, to double check targets and see if those targets are still manageable, and it gives an opportunity to make adjustments to a business model before it’s too late.

This practice is called, ‘Get out of the building’, an important part of the Lean Startup Methodology . It means to develop a BMC and test it against reality. For this to work, you need to create an MVP ( Minimum Viable Product ) that materializes your Value proposition and test it against real-life customers. Testing means that they should really purchase the MVP and that they complete the different sections of the BMC for true validation. This process is really iterative, and it helps entrepreneurs and business executives to make the adjustments necessary to really market a value proposition, reducing the risk of mounting a full-scale operation.

Get Out Of The Building PowerPoint Template

Business Model Canvas Examples

By using Business Model Canvas Examples, we can evaluate business models and identify just what changes need to be made to the model in order to ensure growth and success. In addition, analyzing Business Model Canvas examples and being able to study success stories is beneficial to be able to apply it in different industries.

Let’s take a look at the BMC Example of the MoviePass company, which launched with the idea to sell a monthly service to the general public for daily movie tickets at major theater chains for a flat monthly membership fee. The company reasoned that they could benefit two groups, the average moviegoer would be able to see more movies and movie theaters themselves would see better attendance.

In theory, it sounds like a reasonable concept, but in reality, MoviePass had not developed a functional business model which resulted in a poor performance against new technologies. There was no constant evaluation to keep track of their cash flow, and how by failing to keep the company growing fast enough, it couldn’t support the necessary costs. Perhaps if leadership had followed a BMC these issues may have been recognized earlier.

Business Model Canvas Example - MoviePass

By using the BMC, MoviePass could have visualized earlier that the business model was in need of a pivot, a change to a section of the model in order to address an issue. In MoviePass case, areas like cash flow and customer acquisition had some gaps that required a solution. Had the company been more aware of their business model, they might have seen a need for a Minimum Viable Product (MVP) where they could test the results of their ideas with a few early adopters.

An MVP is the bare bones of a product or service that can provide invaluable information about how a small group of customers reacts. By having a testing period of limited engagement, a business can limit cost while drastically improving knowledge on how to proceed. Had MoviePass used this, they might’ve been able to observe early on that some customers used their service to the max, purchasing a movie ticket per day, far outweighing the profit of their service from the cost of providing it.

The pivot would adjust to their business model, and a new MVP could be created to test the new approach. This new iteration of the business may have changed the original direction of the company. Through each pivot and each new iteration of the model, MoviePass BMC would adjust accordingly, allowing an easy method in which to keep track of the major changes without getting overwhelmed in all the details that lay underneath each educated decision.

There are, however, examples of well-crafted business models that can be observed on a BMC. Let’s take a company that has spread its business model all over the world and has undoubtedly enacted countless pivots and iterations of the business model in order to evolve, adapt, and thrive over the years: McDonald’s.

When thinking about the massive scope of McDonald’s, it’s both interesting and telling of how the BMC can still capture the essence of their business model. McDonald’s is a global corporate cash cow requiring a rock solid model, but that doesn’t mean it’s the same one since the conception of the company.

With the many decades in operation, you can be sure that a McDonald’s BMC would not look the same at the beginning as it does today. What originally started as a single burger joint on a street corner, now faces the challenges of global food service. Each time a new challenge or opportunity presented itself, the McDonald’s business model was forced to pivot by observing the environment, developing an appropriate plan of action, and monitoring the progress accordingly.

Over the years the world has grown to experience many iterations of the McDonald’s brand, whether it be an icon of American cuisine or an example of adaptation to dietary health. Flexible and ambitious, McDonald’s always made sure the business model matched desired outcomes.

Business Model Canvas Example McDonalds

Uber is a ride hailing service that has caused massive disruption for conventional taxi services. By using digital technology and a specific standard for cars and drivers offered to customers, many taxi services and individual taxi drivers have found it hard to compete with Uber. In contrast to developed countries, taxi drivers in developing countries have been unable to meet the minimum vehicle standards to qualify as Uber drivers, competing them virtually out of the market. On the contrary, it has also attracted a new segment of people looking to use Uber as a part time job to earn extra money.

By looking at Uber using BMC Example we can see that its key partners include customers, drivers, payment processors, mapping data providers, and local authorities in the country it operates. Its key activities include developing its digital platform and algorithms, driver onboarding, marketing to balance demand and supply, and supporting customers using the service. The key resources of Uber are its digital platform, pricing and routing algorithms. Uber relies on a peer-to-peer (P2P) circular economy. Where customers and drivers continue to contribute to the Uber revenue in almost a loop. And since Uber is easier to use compared to conventional taxi services, both customers and drivers tend to often use it as a routine. For example, many drivers have completely switched to Uber from conventional taxi services and new drivers entering the market cannot imagine providing services without the model Uber provides. Similarly, customers can get used to the service in a way that the Uber service itself becomes a part of their daily routine.

The value proposition of Uber is provision of an on-demand taxi service for customers, whenever and wherever they need it. Uber fills the gap for the availability of an instant taxi service, without the need to necessarily ensure pre-booking or find a taxi manually. This offers user convenience, with various value benefits for both the customer and drivers, including the option to avail a cash free taxi service by customers, earning opportunities for drivers, and the supply of passengers and drivers through its ever-increasing base of users.

Uber reaches its customers and even attracts new drivers through its marketing and makes it easier for people to use its services through its app. Making it easy for the customers and drivers to communicate. Uber provides the utility of not just an on-demand service but also uses its algorithms to match supply and demand, find the shortest routes for customers and to allocate the closest driver. However, since Uber is primarily connecting customers and drivers, it also shifts much of its costs to the former, since it does not require owning and maintaining a large fleet of cars. It can also adjust its revenue based on the market its operating in, adjust price to match not only demand and supply but the purchasing power and market rates of the country or area it operates in.

Business Model Canvas Example - Uber

When Amazon started in 1994, terms like e-commerce or online shopping were virtually unheard of. In fact, Amazon can be easily credited with being one of the first e-commerce platforms in the world. However, its customer led approach, with the convenience Amazon offered soon turned it into a famous retailer, which now has various other services attached to its name including an online video streaming platform called Amazon Prime, a cloud storage service (Amazon Drive), Kindle tablets, Fire TV, etc. However, to keep things simple, let’s look at Amazon’s BMC Example in the context of its retail store.

Amazon provides users with a range of services from its network of sellers. These sellers are rated by customers according to their experience and sellers that fail to adhere with Amazon’s standards are removed from the platform. For example, during the start of the COVID-19 pandemic, many people began hoarding hand sanitizers and selling them at inflated prices online. Amazon was quick to act to remove such vendors.

The approach that Amazon has is based on not just to connect buyers and sellers but to ‘continually raise the bar of the customer experience’. To ensure this, amazon often takes innovative steps that not only include improving its digital platform but also to ensure a steady supplier base. In 2019, Amazon announced $10,000 and three months worth of their gross salary to employees who quit their job and start a delivery service. Anticipating the need to expand its supplier base. Amazon has also been famous for offering competitive employee benefits and creating a corporate culture that encourages innovation and employee loyalty.

Through its colossal warehouses, customer centric approach and corporate culture that creates an atmosphere of employees to remain closely connected with the company, Amazon’s revenue stream simply does not rely on its customer experience, workforce or supplier base but how it’s able to create an environment where stakeholders, including customers and employees feel a sense of loyalty towards the company.

Business Model Canvas Example Amazon

Over the years, AirBnb has been among companies that have leveraged their platform to transform conventional modes of doing business. Using its rating-based digital platform, AirBnb enables people looking to rent accommodation and hosts to be able to connect and become a part of its revenue stream with a few simple taps or clicks.

The platform has not only helped people who have conventionally been renting out their property but also enabled individuals with extra space to consider becoming hosts to earn extra money by renting out space for a short period of time. Similarly, the customers benefit from avoiding hefty rates of hotels and expensive accommodation options.

Like Uber, AirBnb has also been a disruptive force in the market it has operated. Using its digital infrastructure to connect travelers and hosts. While offering the value proposition of making money by utilizing underutilized space to hosts and offering low cost accommodation for people looking to save money. This model has enabled the company to surpass large hotel chains and make a major impact in the industry for rent and accommodation. In 2020 AirBnb was valued at $75 billion, surpassing giants like Hyatt Hotels valued at $2.07 billion and Marriott Hotels International valued at $10.57 billion.

Business Model Canvas Example - AirBnb

From its launch in 1997 to 2006 in the United States, Netflix had a per-rental model per DVD. However, in 2007 it launched a subscription-based model that turned out to be more successful. Today, Netflix is available for streaming in over 190 countries, each with its own catalogue of Movies and TV shows.

According to Netflix’s Business Model Canvas Example, its value proposition is the provision of on-demand entertainment regardless of where you are. It’s subscription models provide access to one or more screens, with the utility to watch Netflix via mobile, tablet, laptop, gaming consoles, etc. Its packages include an economical package with a SD (480P) resolution limited to a single device to more exclusive packages offering Full HD (1080p) and Ultra HD (4K) and HDR (2160p) resolutions.

Needless to say, the market segment of Netflix is quite close to universal. Out maneuvering cable operators and conventional TV channels with exclusive on-demand content. While Netflix’s partners have included broadcasters and production companies, it has recently been focusing on original content. Through Netflix’s subscription-based model, there is very little need (if any) for customer interaction, unless a user is reporting a bug. The Netflix model focuses on self-service with a ‘all you can eat’ style subscription model, with algorithms constantly suggesting content to users to keep them engaged based on their viewing preferences.

Neflix Business Model Canvas Example

Ikea’s value proposition is to provide affordable furniture that is sturdy, aesthetic, and functional enough to cater for customer needs. In doing so Ikea claims to create a better everyday life for people who use its products. The Business Model Canvas Example of Ikea includes its vendors, suppliers, franchisees, and logistics partners making it possible to reach out to customers globally.

Unlike companies like Amazon, e-commerce is only part of Ikea’s operations, as it has a robust physical presence in more than 50 countries. Over the years Ikea has undergone continuous product development with new furniture designs and a range of products being released on a consistent basis. This has helped the company to cater for the needs of different customer segments including families, businesses, and people who need something that is easy to use, assemble and disassemble.

Ikea Business Model Canvas Example

Whether it be a brand-new business endeavor or a product launch at a long-standing company, it’s critical that the business model is kept at the core of every decision. A Free Business Model Canvas Template is a tool to easily keep the model insight and offers an easy method to open the dialogue when that model may need to pivot.

The whole purpose of the BMC is to allow for a simple presentation of information, reducing complications in understanding just what is required in each new iteration of a business model. At a glance, anyone invested in the outcome of the model should be able to understand the who, what, when, where, and why’s of the model, or bring it to everyone’s attention if they don’t.

Most importantly, the BMC is a tool to help drive success. If there are issues in your business model that need to be addressed, a BMC makes it easier to visualize where the gaps are, and how they may be filled. Keep in mind that pivoting is crucial to the success and survival of a business model and that change, growth, and adaptation are not an abandonment of what matters, but a natural progression to find the best outcomes to the ultimate goal. As Eric Ries, author of Startup Lessons Learned, puts it: ‘pivoting may lead [successful startups] far afield from their original vision, but if you look carefully, you’ll be able to detect common threads that link each iteration.’

If you want to create professional looking Business Model Presentations, take a look at the following Business Model Canvas templates , ready to edit and easy to use.

1. Free Business Model Canvas Template for PowerPoint

snacks business model canvas

Build a top-notch company presentation using Free Business Model Canvas Template for PowerPoint. The cool scheme is relaxing to the eyes. The clear layout can provide the audience with quick understanding of the entire report in just one slide.

Use This Template

2. Animated 3D Business Model Canvas Template for PowerPoint

snacks business model canvas

Created with a 3D Model, this professional PowerPoint Template is ideal for creating videos or animated versions of your Business Model Canvas. Very popular among educators and speakers of the entrepreneurship niche.

3. Business Model Canvas PowerPoint Templates

snacks business model canvas

This Business Model Canvas PowerPoint Template is created 100% with editable PowerPoint Shapes, allowing the user to customize the content and visual appearance of the presentation. Suitable for educational presentations where you need to navigate each section of the BMC, or for investors presentations where you need to deep dive on each section of your Business Model.

4. Business Model Canvas Template for PowerPoint

snacks business model canvas

Our most popular Business Model Canvas Template. Ideal for working in groups and iterating with different BMC’s. Its suitable for cooperation editing, and allows very simple compositions. Well suited for developing your MVP and crossing the assumptions that were negated by reality.

5. 3D Perspective Business Model Canvas PowerPoint Template

snacks business model canvas

This Business Model Canvas Design is inspired in the idea of empty boxes, that entrepreneurs need to fill with their ideas. The design is simple to edit and decorated with a colorful theme. Designed to impress every audience.

6. Lean Canvas PowerPoint Template

snacks business model canvas

This Lean Canvas template for PowerPoint and Google Slides is perfect for anyone who needs to pitch a business idea to investors, present their idea to stakeholders or company leadership. This template is 100% editable, allowing the user to customize the content and visual appearance.

7. Product Management Canvas PowerPoint Template

snacks business model canvas

The Product Management Canvas PowerPoint Template is a strategic planning and modeling presentation. This is a single-slide template showing various aspects of product planning and successful management. The purpose of this canvas is to consider all aspects of the product.

8. Editable Business Model Canvas PowerPoint Template

snacks business model canvas

Editable Business Model Canvas PowerPoint Template is a professional presentation representing the Business Model Canvas in “board” format. All the presentation design is completely editable and the user can move, or add, post-its like text boxes to work with the canvas.

9. Simple Business Model Canvas Template for PowerPoint

snacks business model canvas

If you are looking to create an aesthetic Business Model Canvas Template, the Simple Business Model Canvas Template for PowerPoint will allow you to give your presentation the style you need. You will be able to add sticky notes with information for each of the sections of your Business Model.

snacks business model canvas

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Acquisition, Business Model Canvas, Channels, Cost Structure, Customer Development, Customer Relationship, Customer Segments, Key Activities, Key Partners, Key Resources, Lean Startup, Management, Minimum Viable Product, MVP, Prototyping, Revenue Streams, Startup, Steve Blank, Strategy, Value Proposition Filed under Business

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2 Responses to “What is a Business Model Canvas? Quick Guide + Examples”

If your business is a non-for-profit , how can you adapt your MVP? You are not selling anything as such, so how do you test if your product (MVP) will be purchased?

Hi Elena If there is a “business model”, there is always a business. So, you are selling something. Even non-for-profit sell. They just sell at “cost” or “subsidized”, but there are customers which pay at the end. Otherwise, rather non-for-profit, it is philanthropy and there is no “business” around. Hope this helps. Regards GV.

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snacks business model canvas

Business Model Canvas

What is the business model canvas.

A business model canvas provides a high-level, comprehensive view of the various strategic details required to successfully bring a product to market. The typical use case for this tool is to outline the fundamental building blocks of a business, but it can be used effectively for individual products as well. The exact ingredients may vary, but these are some of the typical components included:

Asking and answering these questions should be de rigueur for any new product, but this particular framework is useful for distilling the supporting business case down into something easily digestible. By forcing everything to be on a single page, each question must be answered succinctly, which often cuts through any grandstanding to illustrate whether each area is truly addressed and viable.

How do product managers use the business model canvas?

The business model canvas serves two primary purposes for product managers : focusing their thinking during its creation along with expediting and framing the conversation when communicating with others.

Because the business model canvas is a comprehensive summary of what the product will do, who will use it, why they’ll use it, how it will happen, and how the money works, it requires a lot of thinking and homework to put it together. This exercise is very helpful for product managers to fully understand the market opportunity and refine their story while uncovering potential problem areas and fully vetting their impact. Plus the process of boiling everything down to a single page ensures that what is included is as truthful and well supported as possible.

The business model canvas can serve as a continually referenceable touchstone for the product development process and beyond, essentially serving as a mission statement for the product. As conditions on the ground change and more is learned about the product’s market reception and usage, the canvas can be updated to accurately reflect the latest information; reviewing the canvas periodically is a worthy activity in and of itself.

As a communication tool, the business model canvas is an ideal document for our short attention span world and is as useful with the executive team as it is with a junior developer. Since it only contains the most salient and relevant information, the audience won’t be drowning in details or distracted by supporting evidence or non-sequiturs. The canvas can also create a universal vocabulary for the product and get everyone using the same language and concepts going forward.

[Free report] 2021 State of Product Management ➜

Tips for using the business model canvas

Here is how to make the most of the business model canvas and the process of creating and maintaining it:

Creating a business model canvas puts new product ideas under the microscope and pulls together disparate sources of intelligence, opinions, hunches and research into a single piece of paper. It forces critical thinking and analysis of assumptions and guesses and provides an excellent reference point for the entire organization.

Once the canvas is approved and productization begins, the canvas can also serve as a straw man for the product roadmap, lining up future features and functionality based on the priorities laid out in the document to achieve market success.

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What Should Be Included in a Restaurant Business Model?

J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor.

snacks business model canvas

Starting a new business can be very exciting. The thought of working for yourself and creating something new—not to mention making a lot of money—is a prospect many people toy with but may never actually realize. That's because it can be a very challenging and daunting task, too. It takes a lot of time, effort, and money to start a business from the ground up. There are a lot of sleepless nights and you'll probably have to go out and look for money to get your business up and running. And there are a lot of other things you have to consider before you open up your doors to the public, whether you're a designer, retailer, or a restauranteur.

If you're not afraid of taking the plunge and you want to open your own restaurant, you'll have to come up with a business plan before you even begin your footwork. Read on to find out the basics about business models and what you'll have to include in yours.

Key Takeaways

Business Models 101

A business model is a plan for the creation of a profitable business. It lays out the products and services the company plans to offer consumers in the marketplace, its marketing plan , and financial projections. All of these should ultimately show ongoing profitability. Companies also include the costs they expect to incur to run their businesses in their plans as well.

Business models are—and should be—tailored specifically to the type of company. The model for a restaurant, for instance, will be different from that of a software company. A restaurant's business model needs to contain some basic elements specific to the restaurant business . The most obvious element is the menu. Other key factors that make up a restaurant's business plan include its unique value proposition, its target customer base or target market, an assessment of competing restaurants, a marketing strategy, and financial projections.

Business models should be tailored specifically to the type of company, so a restaurant's business model will be different from that of a software company

Unique Value Proposition

A good restaurant business model contains a clear statement of the restaurant's unique value proposition . The value proposition is a statement of what it offers customers that is not available at other dining establishments in the area. While a unique value proposition is essential for any business , this is especially true for a restaurant that must compete on a daily basis to attract patrons over other restaurants. There are many potential options for a value proposition for a restaurant including menu choices, affordability, service, and atmosphere.

A basic part of any restaurant business model is the proposed menu. Menu choices may be the focus of a restaurant's value proposition if the restaurant intends to offer ethnic cuisine that is not available at any other restaurant in the area. In any event, a restaurant's menu has a significant impact on its ability to attract customers. The selection and pricing of menu items is an essential element in a restaurant's financial projections regarding anticipated costs, revenues , and profitability .

Target Market

The target market is an important part of the business model because it identifies a business's potential customers. A company can't be successful if it doesn't recognize the people to whom it will appeal. And this includes restaurants.

Many companies spend a lot of time studying and identifying their potential customer base. It's not enough to say they'll cater to everyone—they must be able to narrow down key demographics like age, income, lifestyle, and other key factors that will connect customers with the business. Not doing so can cost the restaurant a lot of time and, more importantly, a lot of money.

Testing this market is very important before a company launches and before a new product or service is offered on a grand scale. That's why many restaurant chains like McDonald's and Burger King test new offerings in a select area before rolling them out on a national scale. If the product proves to be successful, it's worthy enough to be put into other locations. If not, the financial impact is very minimal, and the business can put the brakes on the launch.

The Competition and Marketing

An established restauranteur or one who's just starting out must identify and study their competition before opening a business. There are several key things potential restaurant owners can learn from anyone directly competing in the same space. Understanding how the competition operates can help:

The marketing strategy is the restaurant's plan to reach its target market and, therefore, its financial goals. This includes advertising , promotions, and other incentives to attract and retain customers. Restaurant marketing may also include revenue-generating activities like offering additional services such as catering.

There are plenty of tools available that can help manage tables and keep a restaurant full. Restaurant reservation software allows customers to reserve a table online and alerts the staff about reservations, cancelations, and no-shows. Some of these services include a waitlist and features to help restaurants manage special events.

Startup Costs and Projections

Any business model must include both an estimate of necessary startup costs and projections for future revenues and expenses . Again, this may be a particularly important element in a restaurant business model. While some restaurants open with great fanfare and have regular customers from day one, others take some time to attract a regular clientele.

There are a host of expenses associated with operating a restaurant. They include the cost of food as well as supplies such as napkins and silverware, furnishings, employee payroll, and advertising. Startup costs vary widely depending on the type of restaurant. Amounts and sources of external financing should be clearly laid out in a restaurant's business model. Beyond this, there should be a clear analysis of expected ongoing costs, revenues, and profit margin  that shows how the restaurant expects to sustain profitability.

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Why snap inc's business model is so successful.

snacks business model canvas

Snap Inc business model canvas

snacks business model canvas

Snap Inc’s Company Overview

Snap Inc. is an American multinational technology and social media company, founded on September 16, 2011, by Evan Spiegel and Bobby Murphy and based in Venice, Los Angeles. Its products include Snapchat and Spectacles, as well as the Bitmoji app. The company was originally named Snapchat Inc. upon its inception, but it was rebranded on September 24, 2016, as Snap Inc. to include the Spectacles product under a single company.

Country: California

Foundations date: 2011

Type: Public

Sector: Information & Media

Categories: Internet

Snap Inc’s Customer Needs

Social impact: self-transcendence

Life changing: provides hope, self-actualization, affiliation/belonging

Emotional: rewards me, badge value, fun/entertainment, attractiveness, provides access, design/aesthetics

Functional: organizes, connects, variety, informs, integrates, organizes, saves time, avoids hassles, sensory appeal

Snap Inc’s Related Competitors

Snap inc’s business operations.


This approach generated money by sending promotional marketing messages from other businesses to customers. When you establish a for-profit company, one of the most critical aspects of your strategy is determining how to generate income. Many companies sell either products or services or a mix of the two. However, advertisers are frequently the source of the majority of all of the revenue for online businesses and media organizations. This is referred to as an ad-based income model.

Culture is brand:

It requires workers to live brand values to solve issues, make internal choices, and provide a branded consumer. Developing a distinctive and enduring cultural brand is the advertising industry's holy grail. Utilizing the hazy combination of time, attitude, and emotion to identify and replicate an ideology is near to marketing magic.

Blue ocean strategy:

The blue ocean approach is predicated on the premise that market limits and industry structure are not predetermined and may be reconfigured via the actions and attitudes of industry participants. This is referred to as the reconstructionist perspective by the writers. Assuming that structure and market boundaries exist solely in managers' thoughts, practitioners who subscribe to this perspective avoid being constrained by actual market structures. To them, more demand exists, primarily untapped. The core of the issue is determining how to produce it.


This pattern is based on the capacity to convert current goods or services into digital versions, which have several benefits over intangible products, including increased accessibility and speed of distribution. In an ideal world, the digitalization of a product or service would occur without compromising the consumer value proposition. In other words, efficiency and multiplication achieved via digitalization do not detract from the consumer's perceived value. Being digitally sustainable encompasses all aspects of sustaining the institutional framework for developing and maintaining digital objects and resources and ensuring their long-term survival.

The aikido business model is often characterized as using a competitor's strength to get an edge over them. This is accomplished through finding weaknesses in a competitor's strategic position. In addition, it adds to marketing sustainability by exposing rivals' flaws, finding internal and external areas for development, and attracting consumers via specific product offers that deviate from the norm.

Corporate renaissance:

Improving management and performance for companies of all sizes, industries, and globally via creative solutions. Alternate Capital Raising Platform is a novel method of obtaining money that connects the prospective buyer with available capital sources such as venture capital funds, angel investors, and others.

Acquiring non customers:

Acquiring non customers who traditionally did not seem to be the target of customer value proposition. Customer acquisition refers to gaining new consumers. Acquiring new customers involves persuading consumers to purchase a company’s products and/or services. Companies and organizations consider the cost of customer acquisition as an important measure in evaluating how much value customers bring to their businesses.

Codifying a distinctive service capability:

Since their inception, information technology systems have aided in automating corporate operations, increasing productivity, and maximizing efficiency. Now, businesses can take their perfected processes, standardize them, and sell them to other parties. In today's corporate environment, innovation is critical for survival.

Online lead generation is the technique of gathering or gaining a user's information ? often in return for an item, service, or information ? and then reselling that information to businesses interested in advertising to or selling to those gathering leads.

Ingredient branding:

Ingredient branding is a kind of marketing in which a component or ingredient of a product or service is elevated to prominence and given its own identity. It is the process of developing a brand for an element or component of a product in order to communicate the ingredient's superior quality or performance. For example, everybody is aware of the now-famous Intel Inside and its subsequent success.

Low-budget innovation:

Fast-moving consumer goods businesses produce co-created items with early adopters through sample testing based on user observation and involvement. As a result, fast-moving consumer goods businesses may obtain a greater new product success rate while incurring fewer development expenses via a low-budget innovation business strategy. That is referred to as low-budget innovation.

One-off experience:

The one-off experience business concept aims to facilitate the interaction between consumers in abundant marketplaces and their experience-seeking counterparts. This business model can only succeed if social media firms collaborate with physical event organizers, online pop-up shops, and e-commerce merchants. Developing software and participating in continuous dialogue with their consumers is insufficient. This business model provides consumers with unique experiences at a particular location during a specific event.

Markets are conversations:

For professional services firms, the difference will be made by converting non-engaged customers into engaged customers. Product development will be obsolete. Customer relations and conversations will replace it. By sharing modular and beta products and services with your current and future customers, companies and their customers interact and collaborate in ongoing conversations. Not only will customers find and follow companies in online social networks, but it will also be the other way around as well.

Mobile first behavior:

It is intended to mean that as a company thinks about its website or its other digital means of communications, it should be thinking critically about the mobile experience and how customers and employees will interact with it from their many devices. The term is “mobile first,” and it is intended to mean that as a company thinks about its website or its other digital means of communications, it should be thinking critically about the mobile experience and how customers and employees will interact with it from their many devices.

Lean Start-up:

The Lean Start-up methodology is a scientific approach to developing and managing businesses that focuses on getting the desired product into consumers' hands as quickly as possible. The Lean Startup method coaches you on how to guide a startup?when to turn, when to persevere?and how to build a company with maximum acceleration. It is a guiding philosophy for new product development.

Technology trends:

New technologies that are now being created or produced in the next five to ten years will significantly change the economic and social landscape. These include but are not limited to information technology, wireless data transmission, human-machine connection, on-demand printing, biotechnology, and sophisticated robotics.

Location-based advertising:

Location-based advertising is predicated on the fact that we now take our phones with us everywhere we go. Additionally, most of us are content to share our location data with the different applications we use. This enables marketers to tailor their messaging to individuals depending on their current location. Instantaneously. Advertisers may deliver various messages to other individuals based on the location data obtained from their mobile devices.


Disrupts by offering a better understanding that customers are willing to pay for. Experience companies that have progressed may begin charging for the value of the transformation that an experience provides. An experienced company charges for the feelings consumers get as a result of their interaction with it.

This model collects data and connects it to others; it is suggested to investigate the impact of advertising on consumer purchase dynamics by explicitly linking the distribution of exposures from a brand's media schedule to the brand purchase incidence behavior patterns over time. The danger is that we may be unable to react productively and cost-effectively to technological and market changes.


An infomediary acts as a personal agent for customers, assisting them to regain control over the information collected about them for marketing and advertising purposes. Infomediaries operate on the premise that personal data belongs to the individual represented, not necessarily the person who manages it.

In-crowd customers:

Providing services to the in-crowd Consumers in mature markets need travel, leisure, and lifestyle businesses to customize their interactions with these customers significantly. For travel, leisure, and lifestyle businesses, their most valuable asset is their brand. The brand functions as a social network navigator as well as a separator between the in-crowd and the crowd. Potential brand ambassadors are the most influential members of a social network. In addition, brand ambassadors collaborate in the selective marketing of high-status goods and services.

Product innovation:

Product innovation is the process of developing and introducing a new or better version of an existing product or service. This is a broader definition of innovation than the generally recognized definition, which includes creating new goods that are considered innovative in this context. For example, Apple launched a succession of successful new products and services in 2001?the iPod, the iTunes online music service, and the iPhone?which catapulted the firm to the top of its industry.

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Online Food Delivery Business Models- A Detailed Guide

Online Food Delivery Business Models- A Detailed Guide

Last Updated: 10th May, 2022

The online food delivery market is evolving and expanding at a drastic scale. The unprecedented growth of the food delivery industry extends a plethora of opportunities for businesses to start an online food delivery marketplace. 

As per a report by Uber , the food delivery market is expected to grow 10% a year to be worth $25bn in Europe by 2023. Technological advancements have turbocharged the adoption of online food delivery services among customers and this has been the major reason for several entrepreneurs to flee towards the online food delivery market.      

Strategizing the business model is one of the initial requirements for starting a new business. It is highly advisable for businesses to analyze the market, define the target audience, set business goals, and accordingly choose the business model for their online food delivery business. 

Entrepreneurs should be familiar with various online food delivery business models existing in the market to make a well-informed decision. In this blog, we will discuss different business models for online food delivery business and guide you to choose the right one for your venture. 

Table of Contents

Why Integrated Model is the most lucrative food delivery business model?

How integrated food delivery business model works, online food delivery business model canvas.

Final Thoughts

Different types of food delivery business models .

There are two major food delivery models that dominate the online food ordering and delivery industry. Most of the leading food delivery businesses function in accordance with one of the below-mentioned models. 


Aggregator Business Model

As the name suggests, online food delivery businesses based on the aggregator model allow multiple restaurants to register and function on a single food delivery platform. This business model aggregates services offered by various restaurants and conglomerates them into a single portal. The platform acts as an intermediate between customers and restaurants in this model.

Just Eat, Delivery Hero and Uber Eats are a few of the big names in the food delivery industry that have adopted the aggregator model, and needless to say, their growth has been exponential. So, if you plan to launch a food delivery platform like Just Eat and Delivery Hero , you should choose the aggregator business model. 

business aggregator model

Based on the delivery operations, the aggregator food delivery model is further classified into two business models.

The Order and Delivery Model

There are three major entities involved in this business model i.e, Admin or platform owner, merchants or restaurant owners, and a delivery service provider. In this business model, food delivery is taken care of by the third party. The delivery service provider is usually a courier or logistics company that collaborates with the platform owner to provide food delivery to the customers. The delivery charges on orders are set by the delivery service provider. 

 order & delivery business model.

Advantages of Order & Delivery Model

Choosing this food delivery business model would be extremely beneficial for businesses that do not want to invest in employing a delivery fleet. The platform owner or admin partners with a courier service and assigns all the food delivery related functions to it. Since the order deliveries are managed by the third-party logistics service, the portal owner doesn’t have to be concerned about managing deliveries. 

Also, since the third-party logistics service is solely dedicated to providing delivery, the admin can ensure on-time & efficient food delivery practices.    

Challenges in Order & Delivery Model

The biggest challenge faced by businesses with the order & delivery business model is aligning the delivery process with all other processes on the food delivery platform and onboarding various delivery agents from the logistics service.

Integrated Model

The integrated food delivery model is flexible and the most sought after business model in the industry. In this model, delivery can be managed by both admin and restaurants. 

Many restaurants have their own pool of delivery agents and all they want is a platform to bring their offerings online. Online food ordering platforms functioning in accordance with the integrated model can easily cater to such restaurants. 

integrated model

Make sure that the food delivery solution you choose has functionality for restaurants to seek approval from admin to activate delivery services to “Self” so that the admin can easily see it on the dashboard whether the delivery is managed by the restaurant or admin himself. When a customer places an order from a restaurant, the admin checks if that restaurant has enabled the self-delivery option or avails the platform’s delivery services and then accordingly manages the delivery.

Looking for an easy & hassle-free way to start a food delivery business?

Advantages of Integrated Model

This food delivery business model would help the platform owner to overcome the uncertainties of launching a new business. The integrated model allows restaurants with or without the delivery fleet to be on the food delivery marketplace and function effectively. This business model makes way for a wider range of food outlets to be on the platform which in turn increases the number of choices for customers in terms of dishes and restaurants. 

Challenges in Integrated Model

The major challenge faced by the food delivery businesses based on the integrated model is to streamline the delivery operations and assign delivery of every order as per the availability of fleet with the restaurant. To overcome this challenge, entrepreneurs should look for a feature-packed online food delivery solution that enables the admin to easily assign the delivery management to the restaurants.  

Inventory Business Model

In the inventory model, the online food delivery business does everything in-house. There is only one entity involved here. From launching the food delivery website/app to preparing orders and delivering food to the customers, everything is done by the food delivery company. The platform owner controls the complete value chain. 

The food delivery business model doesn’t allow multiple restaurants to offer their services on a single platform. The order is cooked at the centralized kitchen owned by the business and is delivered by the courier service hired by the business. So the food delivery business owner can easily keep a check on the food quality. 

Inventory food delivery business model

The inventory model is usually adopted by food businesses with multiple restaurant chains like Domino’s, Burger King, and McDonald’s. So, if you already own a chain of restaurants and want to bring your offerings online via a website or app, you can choose the inventory model. 

Advantages of Inventory Model

The main advantage of choosing the inventory model is that you don’t have to rely on a third-party food delivery platform. For businesses having a chain of restaurants in a city with a delivery fleet of their own and looking to build their online presence should choose the inventory model. Such businesses can launch a website or a food delivery platform for their restaurant branches and cater to the customers wanting to place online orders from their food outlets. By doing so, they can save the commission paid to the third-party platform and have complete control over defining the overall customer experience.

Challenges in Inventory Model

High operational costs is the major setback for food delivery businesses based on the inventory model. Also, it becomes difficult for the kitchen staff to simultaneously cater to the online as well as dine-in orders. The business owner should choose a food delivery software that enables him/her to seamlessly manage both online and offline operations.  

When an entrepreneur starts an online food delivery business, he/she may encounter uncertainties in terms of revenue, growth, and acceptance by customers. Also, the entrepreneur while launching the food delivery marketplace is unsure of the number of restaurants that would join the marketplace. In such a case, it is not recommended to invest a huge amount in hiring a delivery fleet. It is advisable to hire a few delivery agents at the beginning and increase the number as your business starts to scale. 

Since the integrated model enables both the admin and restaurants to manage food delivery,  it is the most preferable food delivery business model. 

Whether the restaurant owns a delivery fleet or not, the integrated model provides flexibility to manage food delivery as per their convenience.

There are several platforms functioning as per the integrated food delivery business model and driving exponential growth in the market. DoorDash is one such food delivery marketplace that has established itself as the leader in the US food delivery market and accounted for 45% of all food delivery orders in the US in 2020. 

To capture the untapped opportunities in the food delivery market and achieve a velocity that brings your business to a growth trajectory, you must understand and address the challenges faced by the restaurants .

Restaurants would want to be on your food delivery platform only if your platform adds value to their business by providing solutions to their core problems. 

  As customers around the world are limiting their visits to restaurants and food outlets due to the restrictions posed by the COVID-19 pandemic and switching to online food ordering, restaurants are required to respond to this new normal with effective means. Two major roadblocks faced by restaurants to navigate through the pandemic are:

  The integrated food delivery business model enables you to address both the above-mentioned problems faced by restaurants. Restaurants having their own delivery fleet would want to be on your food delivery platform to expand their customer reach and the restaurants with no availability of courier services would connect with the food delivery platform to leverage the delivery service. The integrated food delivery business model serves both purposes either separately or collectively. Therefore, setting up an online food delivery platform based on the integrated business model can help you connect with a large number of restaurants laying the foundation for sustainable business growth. 

Following are some more factors that make the integrated food delivery business model the most sought after one.

Before starting an online food delivery business, you should invest a good deal of time in conducting the market analysis. It is of utmost importance to make well-informed decisions at the early stages of starting a business. To offer additional value to your customers, you must be aware of the processes adopted by the current market leaders. 

To help you build a better understanding of the work-flow involved in the integrated food delivery business model, we are explaining the delivery process through the functions performed by various stakeholders in managing the food delivery.

Delivery Staff

business model canvas- online food delivery

Key Differentiators of Yo!Yumm Based Food Delivery Business Model

Once you decide on the food delivery business model that meets your business requirements and facilitates you to achieve the set business goals, the next step is to choose a viable multi-restaurant delivery software. 

As we discussed earlier in this blog, the integrated model empowers your food delivery business to easily cater to the varied requirements of restaurants. Therefore, we would suggest you choose a robust and advanced solution like Yo!Yumm, which is designed to function as per the integrated food delivery business model and is equipped with remarkable features. 

There are multiple factors that make Yo!Yumm the best fit to start and scale your food delivery business. Following are the most notable ones:

One of the biggest challenges for online food delivery businesses with the integrated model is to streamline the delivery management processes as managing delivery may prove to be a complex task with both restaurants and the admin involved in it. Yo!Yumm enables businesses to encounter the complexity of managing deliveries with its advanced functionalities. Restaurants can easily enable the self-delivery option on the portal and the admin gets notified about the same. So, when an order is received, the admin can check whether the food is to be delivered by the restaurants’ delivery person or the admin’s delivery staff. Hence, delivery management becomes a hassle-free affair with Yo!Yumm. 

Yo!Yumm is integrated with Google Maps which enables customers to track their orders in real-time. When the delivery personnel picks up an order from the restaurant, both the restaurant and customer can track his/her route and know the exact location of the delivery person. The real-time delivery tracking feature of Yo!Yumm helps you deliver an exceptional food ordering experience to the customers. 

Yo!Yumm is a competent food delivery software  designed with a user-centric approach and an advanced technology infrastructure. The solution enables in-app notifications to provide timely order status updates to the customers. The system sends regular notifications to keep various stakeholders updated at every stage of the food delivery process. 

Yo!Yumm is integrated with multiple payment gateways enabling you to provide flexible payment options to customers. As the solution supports a wide range of payment options, customers can choose to pay via any mode i.e, Credit Card, UPI, Net Banking, Debit Card, and many more.  

Get assistance to choose the right food delivery business model for your startup

It’s fair to say that the business model you choose plays a significant role in determining the business growth as it defines the course of operations for a business. Therefore it is of utmost importance to choose the right food delivery business model for your startup. You must consider factors like – convenience delivered to customers, alignment with your business goals, and the scope of technological advancements before deciding on the business model as well as the food delivery solution.  

As technology is disrupting the online food delivery industry, we recommend you to choose a technology-enabled food delivery solution like Yo!Yumm which empowers you to meet customers’ tailored demands and changing preferences.  

Yo!Yumm is one of the finest online food delivery solutions based on the integrated model with phenomenal features and functionalities. If you are looking to build an on-demand food delivery app with flexible delivery options, we would advise you to check out Yo!Yumm’s demo to understand how the solution provides complete ease of management to different sets of users i.e, admin, merchants, delivery staff, and customers.

snacks business model canvas

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Author: Nishat Sania

Nishat Sania is a passionate writer, tech blogger and content marketer. Having a bachelor’s degree in electronics & communication engineering, she loves to write about the evolving digital industry, changing market trends, and technologies that drive the market. Apart from writing, she spends most of her time reading novels. She is a writer by day and a reader by night.

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Business Model Canvas


The Business Model Canvas helps organizations develop new or existing business models by helping define 9 essential elements of a product or the organization as a whole, in a structured way. The primary objective of the Business Model Canvas is to help companies move from product-centric thinking to business-model thinking (Osterwalder, 2013).

This model guides organizations through identifying and defining the following areas of your product or organization: 

1) Customer Segments 2) Value Proposition 3) Channels 4) Customer Relationships 5) Revenue Streams 6) Key Resources 7) Key Activities 8) Key Partners 9) Cost Structure



The Business Model Canvas can be used by product managers, business development leaders, and new product development leaders.


Business Model Canvas enables entrepreneurs and organizations to transform their ideas into innovative and competitive projects. It is used to reflect the value that they create for their customers and for themselves (50Minutes, 2017). “For an organization to succeed, it has to have a fine-tuned strategy that guides it towards a viable future business model. Using a tool like the Business Model Canvas can serve to unite your company under a clear visualization of where your organization sits today and where it can be tomorrow.” (Hemmer, 2016)


1) Customer Segments

NOODLE: Identify the customer segments for your business model. COMBINE to consolidate similar and duplicate ideas. VOTE for the customer segments that are most important for your organization. MULTI-CRITERIA RATE each customer segment based on market attractiveness and priority. In the comments section, provide rationale for why each was rated the way it was.


PRIORITIZE the customer segments based on the source of the revenue.

2) Value Propositions

NOODLE/TAG:  What value propositions do you deliver to your customers?

3) Channels

NOODLE/TAG:  What are your channels and how do you reach them? RATE the cost-effectiveness of each channel.

4) Customer Relationships

NOODLE/TAG:  What type of customer relationships do your customer segments expect?

5) Revenue Streams

NOODLE/TAG:  What are the revenue streams for your business model? RATE the impact of each revenue stream on your business model.

6) Key Resources

NOODLE/TAG  the key/strategic resources your value proposition requires. RATE the impact of each key resource on your business model.

7) Key Activities

NOODLE/TAG  the key/strategic activities your value proposition requires. RATE  the impact of each key activity on your business model.

8) Key Partners

NOODLE/TAG:  Who are your key partners and which key resources are you acquiring from them? RATE the impact of each key partner on your business model.

9) Cost Structure

NOODLE/TAG:  What are the most important costs inherent in your business model? RATE  the impact of each inherent cost on your business model.


Better understanding and organization’s alignment on customer segments, value proposition and revenue streams

List of prioritized customer segments based on market attractiveness and priority

List of rated key resources, key partners, key activities and cost structure based on impact


This exercise will enable:

Quality -  Use a systematic approach to make informed, high-quality decisions in developing your business models.

Efficiency -  Make the best use of your stakeholders’ time by having them participate when it's convenient for them 24/7.

Engagement -  Enable an inclusive and creative process to build a new business model. Diverse perspectives from all stakeholders are valued in the decision making process.

Agility -  Provides clarity, alignment, and common understanding in order to make investments decision the right business models.


Osterwalder, A. (2013). A better way to think about your business model. Harvard Business Review.

50Minutes. (2017). The Business Model Canvas: Let Your Business Thrive With This Simple Model . Plurilingua Publishing.

Hemmer, M. (2016). Why a Business Model Canvas is Important to Organizational Innovation. One Fire.


Mar 18, 2020


If you make handmade candies or want to sell ready-made ones, you need a candy store business plan . Most people love sweets and buy them almost every day. Therefore you have ensured a regular flow of customers. Starting such a store does not require significant investments in costly equipment and unique knowledge about the product — you can quickly train sellers and begin to work.

But even for such a pure retail business, you need to carefully calculate the key indicators, evaluate the profitability and payback of the project at the launch stage. We have developed for your candy store financial plan with all the necessary reports and calculation of KPIs, which will help you to administrate business successfully. You will not spend time on complex mathematical calculations, you will not have to spend money on expensive specialists, and you will be able to focus the attention on the most important thing — sales and team building.

The sweet shop business plan template assumes for walking traffic and customer conversion rates. Also, you can distribute sales by day of the week, take into account seasonality — this is important because, during the holidays, sales of sweets increase significantly. You can confidently provide this model to creditors and banking institutions — created by professionals with extensive experience and knowledge of all the regulations and requirements.

Working with data is extremely convenient — at the dashboard, we have grouped core metrics, and you immediately see everything you need to understand the current situation and forecasts. Sweetshop profit margins high enough; this is a business worth investing in.

Candy Store Financial Plan Template Will Help You

Benefits of using a Candy Store Financial Plan Excel Template

Saves you time Allows you to spend less time on finances and more time on your products, customers and business development.

Graphical visualization in a convenient dashboard all in one All necessary reports and calculations, including variable data for your easement, are displayed on a convenient dashboard. You do not need to move between sheets to compare important data — everything is visible immediately.

Key Metrics Analysis Creates 5-year financial projections, proforma, financial statements, and financial ratios in GAAP or IFRS formats on the fly.

Follow Seasonality Trends Most Candy Stores have to adapt to some sort of seasonality trends. Your area might be flooded with visitors over the summer, but over the winter your sales decline. Or you might have special Christmas selection. This template will help you keep track of seasonality trends year-round.

Walk-In Traffic Approach To ensure longevity and profitability of your Candy Store business, you need to focus on — the price of your products, and that’s up to you to decide. And the number of visitors. That’s where we can help you! The model is following a walk-in traffic based approach and gives you a clear Candy Store visitors estimation.

Repeat Customer Forecast Candy Store businesses often have large, repeat customer pool. And we’re sure, most people won’t be able to resist the desire to try your delicious products over and over again. Candy Store Business Plan Template takes into account repeat customers and gives you a clear repeat customer estimation.

Get a Robust, Powerful and Flexible Financial Model This well-tested, robust and powerful Excel template is your solid foundation to plan a wide range of different business models. Advanced users are free to expand and tailor all sheets as desired, to handle specific requirements or to get into greater detail.

Works for startups Creates a financial summary formatted for your pitch deck.

Candy Store Financial Plan Excel Template Reports

Update anytime You can easily adjust inputs at the launch stage and throughout the further activities of your store to refine your forecast.

Financial charts For your Candy Store business plan you will receive the main financial tables in the form of graphs for 2 years and 5 years — revenue breakdown, cash balance, operating cash flow, EBITDA, EBIT.

All-in-one Dashboard Consists of Income Statement, Balance sheet and Cash flow statement monthly and annual information, presented both with figures and charts.

Industry benchmarks Comparison of performance indicators in the model and in the industry.

Cash Flow Statement It is one of the most important reports because the main goal of each business is to generate cash flow. It shows how much you have consolidated money, how much is not enough when you need to attract additional financing.

Top Revenue Category Report It always happens in retail that some products sell better than others, some bring more profit, others less, and some bring nothing at all. In a Candy Store shop, where you have to work with goods with a short shelf life, it is very important to monitor the indicator of the cost of sales in the context of goods. The report is built for 5 products (or product categories) but if you wish, you can expand it yourself or with our professional help. Top revenue, revenue depth, and revenue bridge are reflected here.

Loan Amortization Schedule You can find this in the “Capital” tab, where you can see internal calculations of the loans, interest, and equity.

Valuation You will receive all the data necessary for the investors. The weighted average cost of capital shows the minimum return on enterprise funds invested in its activities capital. Free cash flow is the cash flow available to all investors, including shareholders and creditors. Discounted cash is the value of future cash flows in relation to the current time.

Top Expense Category Report It is very important to plan costs so that your company is profitable. It is necessary to analyze what are the highest costs and always work on their optimization. This report summarizes 4 biggest expense categories and the rest of the expenses as the “other”.

Capitalization table Shareholder’s ownership dilution is calculated here. This tab consists of 4 rounds of financing.

Break-even point calculation This indicator is calculated at the beginning of each startup for understanding whether it is appropriate for doing this kind of business. It shows what revenue should be to cover all the costs of doing business, including taxes. When it is reached, the company begins to bring in profits, which means that the investments made in the startup start to pay off.

Great Value for Money Use a robust and proven financial model based on years of experience at an affordable price. This template has a one-off payment and absolutely no hidden fees or monthly payments. Your other options? Hiring a financial analyst and pay to start from $30 per hour up to hundreds.

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    A business model canvas is a valuable tool that can help you explore these types of new ideas in the leanest possible way. Developed by Swiss entrepreneur Alexander Osterwalder and Belgian computer scientist Dr. Yves Pigneur, a business model canvas is a living document that quickly shows how a business makes money.

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    For your Candy Store business plan you will receive the main financial tables in the form of graphs for 2 years and 5 years — revenue breakdown, cash balance, operating cash flow, EBITDA, EBIT. All-in-one Dashboard. Consists of Income Statement, Balance sheet and Cash flow statement monthly and annual information, presented both with figures ...