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Title: Elements and activities of the canvas business model

Keywords: Business canvas, customer, key activities, partners, financial issues, market relationships

Author: UMA

Languages: English

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An entrepreneur running a microenterprise / craft-type enterprise
An employee in a microenterprise / craft-type enterprise
Wishing to become an entrepreneur running a microenterprise / craft-type enterprise
Interested in exploring the option of opening a microenterprise / craft-type enterprise
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Objectives/goals:

1.    Knowing how the canvas business model is displayed
2.    Distinguish the canvas main blocks: commercial, operational and financial
3.    Identify the canvas different elements in each block
4.    Know the relationships between the canvas elements
5.    Be able to apply this methodology to ART&CRAFT business

Description:

Business Model Canvas is a strategic management and lean startup template for developing new or documenting existing business models.[1][2] It is a visual chart with elements describing a firm's or product's value proposition, infrastructure, customers, and finances.

The business model canvas methodology displays the value offer, the commercial perspective (how that value proposition is brought to the market and to whom it is addressed), the productive perspective (how the value is generated and what are the key factors, resources and allied partners to achieve it) and the financial perspective, which summarizes the balance between the activities that generate income (the commercial ones) and those that generate expenses (the productive ones).

Contents

• The business model canvas is represented as a chart formed by three blocks that are placed around the value proposition, which is in the centre of the board.
• The first block shows the commercial / market perspective, where 3 elements are located:
• The segments or groups of target customers to whom we will direct our value proposition, whose needs we must have investigated
• The relationships with customers, which are the ways in which we will publicize our value proposition to the market and convince customers to acquire it
• The distribution channels, which are the means by which we will deliver the product or service to customers who purchase it
• The second block represents the productive structure that allows the offer to materialize, with 3 elements:
• Key activities such as design, production and all necessary tasks to obtain the product / service. In the case of Art&Crafts firms, design and handcraft manufacturing are key activities.
• Key resources that are those critical inputs that make our product unique and appreciated, such as original and high-quality materials
• Network of cooperation alliances with other agents that contribute or complement our business, such as suppliers, logistics agents or distributors, or any agent that contributes to publicize and appreciate our product
• The third block represents the financial perspective and summarizes in monetary terms the activities of the previous blocks:
• Commercial activities generate a revenue stream through sales and also through other complementary activities
• The productive activities generate expenses and the structure of expenses must be designed so that they are compensated by the incomes
• The difference between the flow of income and expenses expresses the benefit of the business.