How to Use a Business Model Canvas to Fortify Your Bottom Line
For any business to grow and maintain success, owners and managers need to understand how every aspect of the operation aligns with the core business. If one essential component isn’t in sync, it could significantly impact the company’s revenue and longevity.
In the latest installment of NAHB’s BizTools Video Series, Edwin Williams, CEO of ZenHammer, highlights the importance of using a “business model canvas” to visualize the company’s key priorities more clearly.
Williams describes the business model canvas as a simplified version of a business plan that allows one to visually track operations and activities to map out the entire business model. Using this model helps a business identify the value it provides to the customers so it can more effectively prioritize its strategies.
In the full video, Williams explains in detail the essential components of the business model canvas, including:
- Strategic partnerships
- Key activities
- Vital resources
- Value propositions
- Customer relationships
- Customer segments
- Costs and revenue
Williams then discusses how the components are interconnected, helping to ensure that business revenue outweighs the related costs.
To watch this month’s video, Business Planning Part 2: Using the Business Model Canvas to Better Understand Your Business, and to get more business planning tips, subscribe to the BizTools Video Series.