So you are at a stage where you want to start this great new venture. You have an idea, convinced it will make you the next Facebook or Google but you are still trying to quantify the idea and exactly how it will make you the first $100M.
OK maybe not, but perhaps you have an established business you consider taking in a new direction (or "pivot", to use one of the popular “valley terms”).
Well, you could go through the motions of writing up the conventional business plan throwing days of energy into word processing or you can shortcut that by using the “Business Model Canvas” (and no we don’t get kickbacks... unfortunately!).
When I first came across the canvas I was skeptical that it would live up to the “game changing” potential promoted in the video intro.
Sorry, I should take a step back here and tell you why we are looking at this in the first place. My business partner and I always have a stack of new ideas on the boil but we have too often gotten to a point where the research of the potential of an idea and the underlying business model would take a sizeable portion of time out of our already overloaded schedules. Hence many ideas stayed as ideas and no actions were taken.
So back to the Canvas. By using the canvas we can quickly model a new idea and determine if the rough model and accompanying financials make sense.
It’s visual, easy and very quickly done. If you get the iPad app, all numbers and assumptions can be quickly entered and logically tied together to produce a rough number for the profit potential of the idea.
The below is one of the sample canvases included with the app covering a book publishing business model.
Check it out if you like us are constantly trying to evolve and improve your business model I’m sure you will find the Business Model Canvas useful.