A Business Model Template (also called Strategic Management Template) is a one-page visual chart that can give different insights on the inner workings and key elements of a business depending on which Business Model Template used and followed.
Choosing your Business Model Template
To choose a Business Model Template, it is important to know what kinds are there. So, without further ado, here are the different templates possible for your business:
Business Model Canvas
Business Model canvas is a management template created on 2008 by Alexander Osterwalder who used to work on Business Model Ontology. It’s the first Business Model Template that was created to fit all different kinds of businesses, but since its creation, a lot more variations have appeared with a more specific and niche usage.
The Business Model Canvas consists of 9 segments, usually called “Building Blocks”, which are: Key activities, Key partners, Key resources, Value proposition, Customer Segment, Customer channels, Customer relationships, Cost structure, and Revenue streams.
Usually, startups use the template (and/or the other templates described below) to formulate hypotheses and change their business model based on the failure or the success of the tested hypotheses.
The 9 segments of the Business Model Canvas make up a total of 4 main elements, which are: The Organization, The Client, The Sales, and The Financials.
Like the Business Model Canvas, Lean Canvas is a management template that was created by Ash Maurya in 2010. The Lean Canvas was made with the focus on startups, specifically following the Lean Startup Method. It has the same structure as the Business Model Canvas but with some changes on 4 of the 9 building blocks.
The overall contribution of Lean Canvas offers an important added value to the Lean Startup Method since it allows in one page to share the essential keys of a project with partners and potential investors during the launch phase.
The Lean Canvas focuses more on the solution that your product or service brings forth into the market, which is usually the main point that investors and partners concentrate on rather than how many partners you have.
The Lean Canvas is divided into two halves: The Market and The Product, with only the Unique value proposition as a common block between the two, let’s explain the changed blocks of each part:
Value Proposition Canvas
The Value Proposition Canvas is unique in the fact that it acts mostly as a supplement to the Business Model Canvas’ Customer segment and Value proposition. It was published in 2012 by the very same Alexander Osterwalder.
The Value Proposition Canvas consists of two elements: The “Value proposition” element divided into 3 blocks —Products and services, Gain creators, and Pain relievers— that correspond to the 3 blocks in the “Customer segment” element —Job-to-be-done, Gains, and Pains.
The Value Proposition Canvas focuses mostly on the customer-product relationships, perceived value of the product or service by the customers and all potential product-market fit.
Mission Model Canvas
For the Mission Model Canvas, it is considered to be a variation of the Business Model Canvas since it was co-authored by the very same Alexander Osterwalder alongside Steve Blank in 2016. It also has the same structure as the Business Model Canvas albeit with some different blocks.
The Mission Model Canvas was made mainly for organizations that have a predetermined and limited budget rather than having a goal of raising revenue. These organizations are mainly government agencies and non-profit enterprises.
As in the Lean Canvas, the Mission Model Canvas also borrows many blocks from the Business Model Canvas, but what did exactly change?
For any concerns or questions, join our forums of discussion in our Startups group and share everything you’re wondering about. Our community would be glad to be of help!