Hello business activists…
When starting a new business online, you definitely need an online business model canvas. Entrepreneurs must be familiar with this business plan. Yes, the business model canvas is like a startup plan for a new business developed by Alexander Osterwalder. The business plan covers everything that you need to understand about opening the new business.
What are Included in Online Business Model Canvas?
So, what are included in the business model canvas, especially for the online business? You can tell the key essentials of the online business model canvas will be explained down below. There are nine points that are usually displayed on the business plan. Here are some further explanations on each of them. Read the carefully to start out your new, online business.
1. Key Partners
One of the most mandatory things that you need to write on the online business model canvas is the key partners. This is the point where you enlist the people or basically everyone that will help you throughout the business. Whether or not you consider them as partner, you have to include them on the plan.
In this section, you must write a lot of things about the partnership. You will also include the suppliers, too. In online business, the items sold online are usually drop-shipped. You do not have the items and instead you rely on the suppliers. You will have to enlist them clearly in this part so that it is clear as day who your suppliers are right from the start.
2. Key Activities
The key activities here are to explain the things you will have to do to get the busines going and starting. There are tons of things to prepare, including the production and distribution. You will have to plan it out really carefully on the online business model canvas right from the start to avoid complication in the future. The things to do in the business are including the planning, too. So, it is better to have this on mind right from the very start of the business.
3. Value Proposition
The value proposition is there to display the core value that you want to deliver to your customers. Even though the business is online and you will never probably meet face-to-face with the customers, you need to make this value. You need to figure out the customer needs that you can satisfy in the business. Put it on the online business model canvas all the time and you will not face any difficulties to deal with the customer in the near future.
4. Customer Relationship
In a sucessful business, you should be able to establish a good relationship between the customers and your own business. You need to understand the aspects that you can integrate to the business and eventually please the customer with it. By writing them clearly on the online business model canvas, the whole customer relationship process will be easier to handle.
5. Customer Segment
There must be segments of customers that you would like to target the most. Say for example, you start a online baby food business, then the segment of customers you target the most is the mother-and-baby segment. You can determine your most important customers from this section in the canvas.
6. Key Resource
In every business, resources are important. You will have to understand this and that is why making the online business model canvas has to include the key resources to the business. Make sure that the available resources for the business are clear and accessible. That way, you won’t have any difficulties in developing the new online business.
In online business with the type of crafting and producing, you surely need a lot of attentions to pay on the resources. It is including where to get the materials and what additional things you need to complete the entire production up to sell them eventually. It will have to be written very clearly on the business plan.
7. Distribution Channel
There will be a difficult situation for you to handle when you have no idea how to distribute the item or service in the business. That is why it is very essential to determine the channel to help your customers reaching you. Determine which channels will work the best and how much will it cost you overall. It will defintely help you in establishing the business as long as you write it on the online business model canvas.
8. Cost Structure
Cost is the most important thing to consider in an online business. Even though the business is online and you do not need a lot of money to start, you still need money here and there and that is why the online business model canvas provides you with this section. In this section you will be given the chance to figure out what aspect costs the most money in your business.
Also, you will be figuring out the key resources and the activities in the entire business that take up the most money and considered as the most expensive ones. By understanding this matter, it will be possible for you to determine the cost and profit of the online business right from the very start.
9. Revenue Stream
The last thing to write on this canvas is the revenue stream. What is a revenue stream? This is a kind of aspects that make your customers pay you. They are willing to pay because there is something good in the business for sure. You need to find out for what value of your business that your customers are willing to pay. That way, you can figure out the best thing to give to the customers and keeping them paying for more.
Those are some of the things you need to know about the business plan. The canvas is already the best concept for the business as it covers everything, starting from the key partners that you will have to include to the concept of revenue stream. The online business model canvas up there will definitely help you in establishing the new business easily.