One of the skills that need to be possessed when starting a business is to describe the business idea that will be carried out. To ensure that everything runs effectively, we need a framework that can accommodates what business needs. The form that can be used to do this is the business model canvas (BMC).
BMC is a form of management strategy designed to create ideas and concepts of a business into a visual form. The use of BMC in formulating ideas will make it easier for us to see an overview of business ideas and their realization quickly. There are nine points that need to be formulated in BMC by business people.
Customer Segments
This customer segments is written as the characteristics of the target segment that has the potential to buy the product. Characteristics can be seen through work, habits, problems, to target needs. For example, in conditions of increasing public awareness of the issue of diabetes at a young age, it is important to fulfill the need for healthy, low-sugar foods, and drinks. Writeable customer segmentation includes urban residents aged 20–40 years.
Value Propositions
This section is filled with what value the business wants to offer to potential buyers. The orientation refers to how the business can benefit customers. Several things that need to be answered include the advantages offered, the benefits that will be obtained by customers after using the product, and the differences with similar products in other businesses. For example, a business seeks to elevate the value of health in the hope of becoming a producer of healthy, low-sugar food and drinks, whose innovation does not take away from the taste and enjoyment of the original product.
Customer Relations
It is inevitable that a business can run smoothly if we are also able to maintain relationships with customers. Customer relations in this section can be filled with strategies that will be carried out to ensure the business can continue to connect with customers, for example by creating business social media such as Instagram, Facebook and Twitter, as well as maintaining a customer database so that in the future they can also provide feedback. The preparation of this strategy also needs to be related to customer segmentation points, by looking at which media is most used by the age range/occupation of the target.
Channels
Channels are concerned with ways to deliver the value offered to consumers. The shape of the channel is also related to the readiness of the business owner's resources, because other factors such as effectiveness and potential are also included in it. The form of this channel is, for example, direct selling or selling goods directly with consumers, or another form in the form of online selling through online marketplace channels.
Key Activities
This section is filled with the core activities that will be carried out in the business. Referring to the previous example, this activity can be written chronologically by determining healthy ingredients to be used including determining sugar substitute ingredients, producing food and beverage innovations, packaging, then product marketing. This is a simple example that needs to be developed more complexly and sequentially, so that business people are more systematic in achieving business goals.
Key Resources
This section will explain what resources a business needs, which can be in the form of materials or people as business drivers. Referring to the previous example, the key resources that can be written include ingredients for the production of healthy food and drinks, food experts, and the marketing/marketing team for selling products.
Key Partners
Any business will not be able to run alone without other parties to help it. Key partners are partners who influence the smooth running of the business. For example, in the production of healthy drinks and food, fruit and vegetable farmers are important partners in business. These partners include not only people outside the business, employees who have competence in product preparation are also strategic business partners.
Cost Structure
The costs that will be incurred in business operations need to be written down in this section. The scope of these costs varies, can include space rental, employee salaries, raw materials, electricity and water, and others. It is enough to write down the type in BMC, you don't need to go into detail with the nominal so that BMC is more concise.
Revenue Streams
This last section includes an explanation of the sources of business income. A business can have more than one source of income. Referring to the previous example, the revenue streams section can be written in the form of income from purchasing products, buying member cards, and applying for grants/sponsors from companies that have a aligned vision.
The nine points of the BMC formulation help business people to be better prepared in running their business. This business readiness also needs to be supported by efforts to maintain the rhythm from start to run of the business. A more focused business arrangement indicates that the process of achieving these goals is formulated seriously.
This article was adapted from the ukmindonesia.id Business Model Canvas (BMC) article
