For those who build a business or startup, you must be familiar with this term, Business Model Canvas. Business Model Canvas is a business tool used to visualize all the building blocks when laying out a business. It is used to describe, design and invent business models more systematically.
On Saturday, March 25, 2023, in the Learning Program implemented by Act Global in collaboration with Ajarin Dong will discuss the Business Model Canvas. The speaker was Jasmine Priscilla Kho, the Founder of Ajarin Dong.
As explained above, the Business Model Canvas is a business tool that is used to visualize all the building blocks when starting a business. In BMC 9 building blocks are interrelated.
There are 9 building blocks:
Who is your target market? Create customer segments in detail, starting from the job or profession, age, and so on, or you can call it a customer profile.
The Value Proposition contains the value or solution that will be offered to the customer. In this case, you have to know what the needs of the customer are and also look at the competitors. To make a value proposition, you must combine what you can provide to customers and what customers need. You must know the advantages of your business compared to your competitors so that you have more value in the eyes of customers.
After knowing who the target market or customer is and the value propositions, the next step is to decide your channels. Channels are how you offer your product or sell it to customers. Channels can be through social media, email marketing, YouTube, and so on. Channels can be used according to the target market to make it more effective. For example, when the target market is teenagers or young people, then use Instagram or TikTok.
Customer Relationships are how we maintain or build relationships with customers. There are several ways to maintain relationships with customers, starting from service, loyalty, marketing, and also the benefits offered. Superior service is one way to maintain relationships with customers. An example of this is Starbucks, which uses a loyalty card as an implementation of its customer relationship. That way, people who have this loyalty card will choose to shop at Starbucks and collect points so they can get existing or predetermined rewards.
The revenue stream is how you get profit from the business you are working on. In making a business there are at least 2 sources of income. This is to prevent interruptions or problems with one of the sources of income. If you only rely on one source, when that source has a problem, your business operations will also be hampered. Revenue streams are also very useful when looking for investors. This is because investors will see where the revenue streams from your business come from. In this case revenue streams are taken as an example of Gojek. The revenue streams from Gojek are drivers, platform fees, payment transactions, and advertising.
Key resources are what resources your company needs to run. In this case, key resources can be in the form of human resources, for example, marketing or programmers tailored to your needs. Likewise, the material requirements, both software, and hardware needed.
Key activities are the main activities of your company. For example, in the food processing business, activities range from cooking raw materials, and packaging to selling food products. Marketing activities can also enter into the company’s main activities.
Key partners are anyone who will become your business partners or people or companies that the company invites to collaborate with. For example, Gojek, while partners from Gojek are drivers, Tokopedia, Gofood tenants, and Bluebird.
The cost structure is what expenses are needed to run your business operations. For example marketing costs, employee salary costs, space rent, and purchase of raw materials. The cost structure is adjusted to the key activities and key resources of each business.
To close, the do’s and don’ts of the Business Model Canvas, namely make sure everything that is entered into the BMC has been validated. Because sometimes what we feel is needed by the customer is not necessarily needed, therefore validation is needed again. Don’t make assumptions yourself, feel that the ideas offered are definitely needed or will be well received because everything requires a process.
“ You have to validate and don’t make assumptions”
Written by: Ni Putu Mia Puriyanti