The Business Model Canvas is a framework that is used by many of today’s internet and technology startups. This is perhaps the best-known business model that is purported to replace the business plan. The book, Business Model Generation, by Alex Osterwalder & Yves Pigneur presents the visual canvas and also describes the elements within each of the nine major categories of the canvas. Alex Osterwalder also has a blog called Business Model Alchemist.
I generally like the Business Model Canvas. It is simple, yet it encompasses many of the most important factors involved in planning a successful business. It enhances the entrepreneur’s ability to communicate these factors to others, and it does seem especially valuable to tech startups.
But, it’s not perfect. One of my faults with this model is that it does not directly address competition or substitute products or services. It also fails to directly illustrate the businesses unique competitive advantage; although, the “value proposition” category is certainly a big piece of it.
This template actually inspired me to develop my own business model. I will reveal my model in a subsequent post.