We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What Is the Business Model Canvas?

Malcolm Tatum
By
Updated: May 17, 2024
Views: 13,016
Share

The business model canvas is type of visual tool that aids in the process of creating a viable model or structure of operation for a new business or refining the model of an established business. Considered a simple but effect strategic management tool, the business model canvas is a visual system used to lay out the organization of a company and identify how to go about enhancing that organization to reduce waste and expenses while also increasing overall productivity. In a sense, this type of canvas is a visual aid that helps making the process of refining or reorganization a business operation easier to envision.

A workable business model canvas may be a literal canvas or paper that is laid out over a conference room table and used as the basis for incrementally adding the different components necessary to create a viable business operation. For example, the focus of the model may be on arranging the flow of activity from the front office through the manufacturing plant and on to the shipping and receiving area of the operation. With other types of companies, the business model canvas may focus more on the arrangement of departments, starting with the executive branches, following through to areas of sales, marketing, development, and production, and ultimately to customer care and order processing and delivery.

There is no single ideal for a business model canvas that completely answers the needs of every business. Using the tool to create or refine the business model requires understanding what goals the company holds, the processes necessary to attain those goals, and the resources in terms of personnel, equipment, and technology that are available to create a viable business operation. The combination and balance of resources required will be different for a locally owned grocery store versus the mixture of elements that would be necessary to create a workable model for an international textile firm.

Since a business model is essentially how a business operates by creating, delivering, and capturing value with the goods and services it offers, using a business model canvas or a virtual tool like business model canvas software can make it much easier to see how all the components of the company work in tandem to achieve the goals. Creating a workable canvas can aid in making changes to placement of facilities, improve communication between departments, and identify redundancies in the operation that drive up costs without providing any real benefits. From this perspective, the business model canvas enhances the ability to make the most responsible use of all available resources, and increases the chances for earning the highest level of profit possible.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including WiseGeek, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.

Editors' Picks

Discussion Comments
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
Share
https://www.wisegeek.net/what-is-the-business-model-canvas.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.