Fazley RabbiThe business model canvas is a one-page tool that describes how a business creates value for customers, delivers it and earns money from it. It splits the business into nine blocks, from who your customers are to what your main costs are. Developed by Alexander Osterwalder with Yves Pigneur, it is popular because it replaces a long document with a single sheet you can discuss, question and change in one meeting.
The nine blocks at a glance
The canvas is usually drawn as a large grid. The right side is about customers, the left side is about how you run the business, and the bottom is about money.
| Block | The question it answers |
|---|---|
| Customer segments | Who are we creating value for? |
| Value propositions | What problem do we solve, or need do we meet, for each segment? |
| Channels | How do customers find us, buy from us and receive what they bought? |
| Customer relationships | What kind of relationship does each segment expect? |
| Revenue streams | What are customers paying for, and how do they pay? |
| Key resources | What must we have to deliver all this? |
| Key activities | What must we do well? |
| Key partners | Who outside the business helps us do it? |
| Cost structure | What are the main costs? |
A worked example: a yoghurt and sweets maker in Bogura
To make this concrete, imagine a hypothetical family business in Bogura that makes traditional yoghurt (doi) and a few sweets. It sells from one shop and wants to grow. Here is how its canvas might look.
Customers and value
- Customer segments: local families buying for daily meals and festivals; caterers and wedding organisers; people in other cities who want Bogura doi sent to them.
- Value propositions: a familiar traditional taste from a known family name; reliable bulk supply for events; careful packing so it travels well.
- Channels: the shop itself; a Facebook page and WhatsApp for orders; courier delivery to nearby districts; a few partner sweet shops in other towns.
- Customer relationships: personal and familiar for locals; a named contact person for caterers; quick WhatsApp replies and order confirmation for online buyers.
- Revenue streams: walk-in sales; bulk event orders with an advance; online orders paid by cash on delivery, bKash or Nagad.
Running the business
- Key resources: the family recipe and know-how; a reliable milk supply; the kitchen and clay pots; refrigeration; the shop's reputation.
- Key activities: sourcing fresh milk every day; making and setting the yoghurt; keeping quality consistent; packing for travel; answering orders quickly.
- Key partners: dairy farmers; clay pot makers; couriers; partner shops; packaging suppliers.
Money
- Cost structure: milk and sugar, the largest and most changeable costs; staff wages; fuel and electricity, including generator use during power cuts; packaging; courier charges; shop rent.
Seen on one page, the canvas raises useful questions straight away. Online orders depend on courier timing and packing for a product that does not travel easily. Changes in milk prices affect every product at once. Caterers may be the most valuable segment, yet they need a different kind of attention from walk-in buyers. None of these questions is new to the owner, but the canvas puts them side by side so they can be discussed together.
How to fill in your own canvas
- Start with customers and value, not costs. If you cannot describe who you serve and why they choose you, the rest will be guesswork. The guide to writing a value proposition helps here.
- Use sticky notes or a whiteboard, so you can move and rewrite ideas easily.
- Be specific. "Everyone" is not a customer segment.
- Mark assumptions. Highlight anything you believe but have not checked, then plan how to test it, for example by talking to a few caterers before building a catering offer.
- Do it with others. A partner, a senior staff member or a trusted adviser will spot blind spots.
- Redraw it when things change, such as when you add a channel or a new type of customer.
What the canvas does not do
The canvas is a thinking tool, not a full plan. It does not show cash flow, timing, detailed pricing or whether each sale is actually profitable. For that, look at unit economics and a simple financial forecast. If you need a document for a bank or investor, the canvas is a good starting point, but you will also need a fuller business plan. For tax, licensing or food safety questions, speak to an accountant or the relevant authority; those do not fit in a box on a canvas.
Try it this week
Print or draw the nine blocks, spend an hour filling them in for your business, and mark the three assumptions that worry you most. Then choose one to test this month. If you would like a second pair of eyes on your model, the business development service explains how I can help.