9 Elements that Must Have in the Business Model Canvas

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Business Model Canvas (BMC) is a well-known framework for defining a startup business model. The canvas is composed with the aim of explaining, assessing, visualizing, and changing business models so that the performance produced by startups is maximized. This business model can be applied by all types of startups without a limited business sector.

Business model canvas is a strategy in management in the form of a visual chart consisting of 9 elements. This business model was first introduced by Alexander Osterwalder in his book entitled Business Model Generation. In the book, Alexander tries to explain a simple framework for presenting important elements contained in a business model. At first glance, the actual flow of the canvas business model seems quite simple.Here are nine elements in the canvas business model.

Customer Segments
The first element that you must have in starting a business model of this canvas is to determine which customer segments will be the target of the business. For example, an airline releases 2 products to meet the needs of 2 different customer segments, or there are 2 television stations that present 2 different programs to meet different customer segments.

Value Proposition
This is a barrier that is a product advantage, what are the real points that can bring benefits offered by the company for its customer segment. This is an opportunity for you to describe the strengths and advantages that distinguish your business from other businesses.

Channels
Through the use of appropriate channels, you can only submit value propositions to customer segments. So, try to think of channels that you want to use well, because the determination of channels is one important element for the success of a business.

Revenue Streams
Revenue stream is the most vital part, where the organization gets revenue from customers. This element must be managed as much as possible to increase business revenue. There must be no raw materials, products, or performance that are not utilized to the full.

Key Resource
Key resources are a partition in the canvas business model that contains a list of resources that companies should plan and have in order to realize their value proposition. All types of resources, starting from managing raw materials, structuring human resources, and structuring operational processes are of concern in making business models.

Customer Relationship
This is an element where the company establishes ties with its customers. Need strict and intensive supervision so that customers do not easily turn to another business just because of a poor relationship.

Key Activities
Key activities are all activities related to business productivity related to a product, where the main activity is to produce a value proposition.

Key Partnership
This element functions to organize the flow of goods or other services. Key partner positions are beneficial for the efficiency and effectiveness of key activites that have been created. Nothing wrong with establishing a good relationship to create a business cycle in accordance with expectations.

Cost Structure
The last element that is no less important than the eight other elements is the structure of business financing. Managing costs efficiently will make the business being lived more efficient and can minimize the risk of loss. It can also determine the right value proposition for customers.

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