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BUSINESS MODEL CANVAS: 9 BUILDING BLOCKS
 BUSINESS MODEL CANVAS: 9 BUILDING BLOCKS
Customer Segment
• This defines different groups of people or organization that a business plan s to reach. Without profitable
customers no business can be succeed.
• When looking into customer segments it is important to group them into multiple segments to better
satisfy their needs. This group can be small or large depending on their common goals , behaviors ,
location, or attributes.
• With these we better understand how to communicate properly with them and find out what works best
for each target audience.
• While most businesses know their audience’s geographic locations and , they do often skip out on the
essential psychographic attributes of their customers.
• Once we have a clear idea of who you are providing a service for , you can make the steps towards creating
value for them
BUSINESS MODEL CANVAS: 9 BUILDING BLOCKS
Value Proposition
• This value proposition is built to explain how our customer segments will value our
unique offer differentiate it from the competition.
• A value Proposition creates a unique value for customers through a mix of elements
that could be either qualitative or quantitative . This could include price, speed, design
or customer service.
• Not always lowering the price is a good options rather we have to fill the customer
needs and problems that other companies in respective industry are not fulfilling.
BUSINESS MODEL CANVAS: 9 BUILDING BLOCKS
Channels
• The channels building block is how our company will communicate with other customer
segment, delivering them value proposition.
• These Channels can include social media, websites, newspaper advertisements, search
engine, and a word of mouth.
• Evaluate the communication with each customer segment and how you can either
improve or change that communication are the most cost efficient.
BUSINESS MODEL CANVAS: 9 BUILDING BLOCKS
Customer Relationship
• I truly believe this part of the business model is the most important. If you build
personalization into your brand and company , then sky is the limit.
• Although this service can be personal and automated it is crucial to understand which
method will best serve your customer needs
• There are three driving motives ( Lead generation, Customer Retention, and upselling )
to build customer relationships with our customers. With these motives, we have to rank
which goals are more important to our business than others.
BUSINESS MODEL CANVAS: 9 BUILDING BLOCKS
Revenue Streams
• This building block measures the earning a company generates from each customer
segment. When targeting each target audience , think about what each group is willing
to pay.
• When we realize that different group of customers are willing to pay at different levels ,
we can come up with different revenue streams to apply to each of these groups.
• A business model includes only two types of revenue streams. One is transactional
revenues and another one is recurring revenues.
BUSINESS MODEL CANVAS: 9 BUILDING BLOCKS

Key Resources
• Key resources are important assets that are available to you and required to make
your business plan successful. These resources allow us to create our unique value
proposition, maintain important relationship to our customers , reach new markets and
create revenues.
• These resources can range from physical, financial, intellectual, or human assets.
BUSINESS MODEL CANVAS: 9 BUILDING BLOCKS
Key activities
• This phase defines actually which operations are essential to the success of our business.
• The key activities of a building block describes the important process that a business must take
part of for a business model to work
• These activities are required to maintain customer relationship, reach new markets, create value
propositions and earn revenues.
BUSINESS MODEL CANVAS: 9 BUILDING BLOCKS
Key Partnership
• The building block of key partnership revolves around the network we build. This can
include suppliers, partners, or even other businesses or influencers in our industry to
create an alliance with
• There are four main categories of partnership for example strategic alliance with non
competitors, strategic partnership with competitors, joint venture to create new
businesses, buyer-supplier relationship.
BUSINESS MODEL CANVAS: 9 BUILDING BLOCKS
Cost structure
• This cost structure building block describes all costs involved in operating a business model. When
or business defines how to create value, maintain customer relationship, and generate income it will
see costs incurred on each of these levels.
• The cost structure of a business can be placed into one of two categories one is cost driven which
focuses on minimizes costs whenever possible which includes high automation, extensive
outsourcing , low price value proposition and leanest possible cost structures.
• Another cost structure is value driven which focuses on how they create the best value for each
customer segment and this includes a highly personalized service and exclusive services.