A business plan is a must-have for a business. But many business owners refuse to write one. Half feel they don’t need one and think it’s a waste of time; for others, it’s overwhelming to plan your business so far in advance. I have a simple and effective business planning tool, a one-page PDF with nine sections called the Business Model Canvas. If you can answer each section you will have a working business plan.

Yes, it can be that simple. However, if you require a loan you will need a standard business plan template. There are sections in this business plan template you won’t find in the Business Model Canvas. For example, financial projects, SWOT analysis, competitor analysis, and other sections. But don’t worry; the purpose of the Business Model Canvas is to help you see if you have a viable product or service and how to get started, which is the most important thing for a business. 

If you are seeking funding and are required to submit a standard business template, you can take the information from the Business Model Canvas and add it to the other business plan template.

Now let’s get started.

Click on this link. The Business Model Canvas Template. You can download this file from the website or right-click on the image and save the picture file to your device. I will define each section and give examples.

Customer Segments

What set(s) of customers will you serve? Who would benefit or value your product or service the most?

• List the habits, hobbies, and interests of the people in your target market/customer segment.

Customer Relationship

How will you engage with your target audience? How will you stay connected to them or establish a relationship? 

• Examples are email, social media, workshops, thank you cards, holiday cards, blogs, YouTube channels, podcasts, events, third-party sites, phone calls, or video calls.

How will you reach your target audience and deliver your product or service? On what channels will they be able to find you when searching for your products or services?

• Examples are websites, online profiles (Google Business Profile), social media, directories, services apps (NextDoor, Uber, Door Dash, Poshmark, etc.), marketplaces (Walmart.com, Etsy, eBay, Amazon, Mercari, Airbnb, Faire, Trada, Abound, Creoate, etc.), or project-based sites (Angi, Guru.com, Upwork, Thumbtack, etc.).

Value Proposition

• What products or services are you offering to meet the needs of your customers?
• What makes your business different than the competitors?
• What challenges will you solve for your customers?

Key Activities

What are the most important activities you must engage in to fulfill your value proposition? Only list the activities that relate to you providing your products or services that will generate revenue for the business.

• For example, direct sales, research, and development, hosting events, workshops, consulting, meeting with clients, creating a website and business profiles, securing vendors/suppliers/manufacturers/distributors, design, content creation, etc.

Key Resources

What resources do you need to create value for your customers and sustain the business?

• For example website and hosting, online marketplaces, office space, supplies, equipment, software, internet connection, transportation, staff, accounting software, resource guides, etc.

Key Partners

Who are the buyers, suppliers, and other businesses you need to form relationships with? What other alliances will help you accomplish the core business activities and fulfill your value proposition to the customer?

• For example suppliers, distributors, trade associations, business organizations, investors, other businesses and brands, etc.

Cost Structure

• What is the startup cost? 
• Which resources will cost the most? 
• What activities will cost the most?
• How much are the legal and registration fees?
• How much are your monthly expenses?

Revenue Streams

• How much will you charge your customers/clients?
• What are other ways to make money outside of your initial business idea?
• How much will each revenue stream contribute to your overall revenue?

For example, you might decide to sell online, wholesale, offer private label services, sell books or online courses, offer workshops, license intellectual property, rent part of your office space to other businesses, etc. There are many options. Take time to think it through. You don’t have to implement any of these ideas right away. It is good to know you have options in the future to make more money.

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