Great Tips To Creating A Clear Business Model Canvas
Many business owners will need to use a business model canvas so as to gain clarity around their business models. However, even today, some people still struggle in seeing their business clearly, something that comes about as a result of applying the business model canvas poorly. It doesn’t have to be that way. Here is a checklist to help you see your business model in full light:
Use precise language
You need to make sure that every building block in your canvas is self explanatory or precise enough. If for instance, you happen to write ‘products’ in the revenue streams, will it be clear? You have to be precise by putting something such as ‘margins on product sales’ or just ‘product sales’.
Use proper granularity
It is very important that you make sure the level of granularity of your canvas corresponds to your company’s objectives. In fact, the canvas should not contain many things. The most important building blocks should be your priority here. For instance, your objective could be to explain the essence of the business model. If so, then your canvas should be better placed to give more details if its main objective was to serve as a true blue print for information.
Don’t forget to add good visual imagery
Have you been making a smart use of both words and images to convey your business’ messages? One thing you should understand is that human beings’ brains take longer to process words than pictures or images. There is a reason for this; every letter in each word is processed as an individual image, so the use of images will make humans’ brains to process your canvas much quicker. And the use of a label or image for any building block could be the most effective way to avoid ambiguity.
Make clear connections
You should note that great and useful canvasses are the ones that have a story as well as a flow where each and every building block relates to one another. Orphan building blocks that don’t have any place when it comes to connection should not be used here. The question is, is there such a thing as a customer segment with no specific value proposition?
Apply color coding
You have to make good use of color coding as well. Color coding can be an easy and quick way to highlight two different sectors with different value propositions. You can even use color coding so as to distinguish between the current model and the one you are planning to build.
Your canvas has to distinguish between facts and assumptions. In fact, when the new business model is being designed, you have to make sure that it distinguishes between what you know and what you don’t know. The truth is you already have facts which can be used to prove what you know. Assumptions only come in about something such as the building block you think could work for your company.