Seeing the big picture is a critical leadership skill. You have to know what the greater vision is, as well as how the business accomplishes this at large. One tool that can be very helpful is Alexander Osterwalder’s Business Model Canvas, which is a tool that is used to write up (and rearrange) the broad viewpoints so that you can then dive down into detail once all the big pieces are in place. The Business Model Canvas (BMC) covers the following nine topics:
This is who your business is serving. You can categorise them by occupation, sex, industry, business function, and more. What matters is that you have a very clear idea of who they are.
This is how you will provide value to your customer segments. What specifically do you do that helps them avoid pain or find gains?
This is how you reach and communicate with your customer segments. It includes sales, inbound and outbound marketing, and all customer touch points before a sale is made.
This covers how you maintain good relationships with your customer segments. It includes the degree of relationship. It could be something as simple as a thank you email, or alternatively a cultivated long-term relationship. Remember that it is cheaper to retain a customer than acquire one so do not overlook this. It is a valuable source of revenue.
This is how you deliver your value proposition to your customers. It includes all the functions of your business, ranging from operations and accounting to marketing and CRM. Once you know how this looks in the big picture, you can then develop processes and templates to make actions easily repeatable.
This is everything you will need in order to complete your key activities. What team members, equipment, licenses, and anything else that is crucial to running the business. The exception to this is what you will outsource.
This is everything you outsource (everything not covered in key resources) to do your key activities. This could be using freelancers, manufacturers, agencies, lawyers or anyone else that is not a part of your core team.
This is how your business makes money. List all the points where the money comes in. Get creative and play with different revenue models.
This is where your business spends money to continue operating. Your revenue streams should be greater than your cost structure and have enough robustness to withstand hard times.
That’s it. The Business Model Canvas is straightforward, provides structure and modularity, and provides a top-line perspective of your business. To learn more about the Business Model Canvas, visit Alexander Osterwalder’s site, Strategyzer.