Looking for a Business Plan Alternative? For Starters Consider a Business Model Canvas

Does the thought of writing a business plan keep you from starting a business? If you are interested in getting your business idea off the ground without first having the joke to make a huge deal, a business model canvas might be right for you to get started.

What is the startup business model canvas?

A business model canvas is a fast-paced alternative to a business plan. It helps you think about the most important aspects of you're the startup, such as your product or service, your target market, and the resources you need to launch, in a short, chart format.

When to use a business model canvas

Why might you want to use a business model canvas instead of a traditional business plan? Here are some situations where a business model canvas might be appropriate:

• Suddenly you have a chance to act. If you are dreaming of launching a restaurant, it may be best to rent a restaurant. You have the opportunity to partner with someone who has the resources necessary to start your business. Using a business model canvas can allow you to work faster before you lose opportunities.
• You want to beat the competition. If you have an innovative business idea, such as a software application or innovation, using a business model canvas can help you to be first in the market. In a very competitive place, other startups may plan a similar launch for you; a business model canvas can help you get into it.
• You do not need external funds. If you are trying to get a bank loan, angel capital or venture capital, then you should have a strong leased business plan to show your financial resources. But if you have enough starting capital at your level, there is no law that says you need to follow a rigorous business plan format.
• You want to quickly evaluate the reality of your concept. Writing a traditional Tahitian business plan will reveal any flaws you may have; however, a business model canvas can help you identify issues quickly. Using a business model canvas, you can immediately decide whether your idea will fly or whether you need to modify it or scrap it and move on to another idea.

Of course, some people just love the speed of the business model canvas and don't want to spend weeks or months planning the business for a long time. If this is you, then proceed using the business model canvas. Just remember that this format is not an excuse to ignore the details of your initial plan.

What is included in the startup business model canvas?

·      Business Model Canvas for Beginners takes a high-level view of your business concept and focuses on the key elements you need to make it work. Developed by Alexander Osterwalder, this is a one-page document in chart form that covers nine "building blocks" that help you start your business.

• Key Partners: Who are the buyers, suppliers, partners and other alliances that can help you execute core business operations?
• Key activities: What are the most important steps you need to take to meet your value propositions, strengthen customer relationships, secure distribution channels and maximize revenue flow?
• Key Resources: What resources are needed to start and manage your business and create value for your customers?
• Unique value proposition: What products and services do you plan to offer? What customer needs do they meet? How they differentiate your business from your competition
• Customer segment: What customer groups does your business serve? Identify a customer who provides value for your business.
• Customer Relationships: What relationships do you build with your customer segments? What kind of relationship does each customer segment expect?
•  Channel: What distribution method would you use to deliver a product or service to your target or market?
• Cost Structure: What will it cost to start and maintain your business? Which resources and activities will be the most expensive?
•  Earnings Streams: How Does Your Business Make Money? How do you value your products and services? Are there other potential revenue streams?

You can create a business model canvas on paper or whiteboard. There are many applications used to create your business model canvas; they allow you to include additional information, save a business model canvas, and more.
Where to get help on a business model canvas

There are several places to get help building your business model canvas. You can get started by taking this SCRE webinar using Business Model Canvas. Then look at Strategizes, Canvasizer, and Extensis to find a business model canvas tool that you can use. You will also find examples of business canvas, resources and training to support.

Traditional strategic business planning and business model canvas can both help startup entrepreneurs evaluate their ideas and make important decisions about startups.

Of course, you can use both of these methods if you want: Many traders start with a business model canvas to give them a "first leap" and then adopt a more traditional Tahiti business plan on the road.

Read Also: 6 Financial Mistakes You Need to Avoid to Make Your Small Business Success