 Welcome to the journey. Today we're talking about what is a business model canvas and why you need one? Data plan is actually planning to fail. Anyone that has a business has heard this statement before. Now, formal business plans can be complicated and intimidating. Business model canvas can be a visual alternative to understand the different variables you'll need for your business. And there are plenty of ways that you can display your business model canvas, whether it's online or on a large whiteboard. That way it's out there in front of you with the outline and you can make adjustments as needed. Yeah, so we're actually going to take you through that business model canvas and do a live demo at the same time. Let's go check it out. Alrighty. All right, so we're talking through how to create a business model canvas and we're actually going to show it to you live. We're using strategizer. We'll have the link below, but it gives you a free trial to basically create your own business model canvas. So we're going to show you how to do it for a web design company, but you can really use these points with any industry, any type of business. All right, so we're in strategizer. You can see it's very visual. You can either do this like Alex was saying on a whiteboard and map this out or online or a Word doc, whatever works best for you. The point is to make it super visual starting with key partnerships. So here's where you round up your key partners, suppliers, basically the people that you'd be working with. Yeah, so as a web designer, I would probably put say graphic designer for key elements of my site and then maybe I have an SEO person because I don't know SEO all that well. I know the basics, but I hire out to get that professional. That's also another key partner I have here. So start to think of all the people that you're really working with on a day to day or week by week basis and add that into this key partnership area. You can also create a wish list here of things that you want to work with your suppliers on to really gain that business advantage like costs or distribution. So next up on our business model canvas is key activities and this is essentially the services that you're going to be providing with your business in order for it to operate. Basically, it's what you need to do to be a profitable business and make money. So since I'm a web designer, I obviously design WordPress sites. I sell new maintenance packages and we'll keep it simple with that. Next up is your key resources. So this is basically what you need physically to actually fulfill those key activities. Yeah, so think about your business. What are the things that you need day to day, whether you sell products, you might need something to ship them in and a shipping service to go along with that. As a web designer, I'm going to need WordPress as my platform to run on. I need a computer to build on. I need a space to work with. These are all things that I'm going to need to ensure that I have my key activities in order. Next up is your value proposition. So this is basically the building block of your business. What value are you providing to your customers? So here are some questions to think about whenever you're trying to decide on your value proposition. You want to ask what value are we delivering to our customers and also which one of our customers problems are we actually trying to help solve? Yeah, this is basically the part where you kind of brag about yourself. What makes you unique? Why do people go with you over a competitor and really just go all out here? So as a web designer, I can really talk about a number of things, but we really want to focus on what I do for my audience. I help create an online presence so they can get new customers. That's my value proposition. I should probably go a little bit more in depth, but we're keeping it pretty basic here. You should know your value proposition, why people go with you versus the others. Go ahead and add it right there. So next up we have customer relationship. This is all about how you communicate with your audience, with your customers on a daily basis, and it can be a number of things, right? Right. So it's not just how are you going to keep your current customers, but how are you going to continue growing and acquiring more customers? So one example would be if you've done social media campaigns, which ones of those campaigns actually worked really well and connected with your customer base? Things like that are great to think about with this. Absolutely. So let me go ahead and jot that down. So social media campaigns, maybe you have a call center if you're a larger business, or maybe you have chat support directly on your site, email support, whatever that looks like. However you communicate and continue communicating with your audience, go ahead and add that there right in the customer relationship column. And that's a great segue because now we're going to go into customer segments. So this is really where you outline who your ideal customer is, who you're really trying to reach and connect with. So if you're a pizza shop in a college town, obviously your demographic is really going to be that college age, maybe people wanting to come in and watch football games or things along those lines. Yeah. And this is where you really dive into who you're serving because as we know, you can't serve everyone. You do not want everyone to be your customer. So the more specific you get, the better it is that your business will grow. So as a web designer, my customer is typically between the age of 40 and 50 for my business. They are looking for to rebuild their site. They've had a site built many, many years ago. So that's going to be my example, looking to rebuild. So who are you trying to serve with your business? Go ahead and add it down in the customer segment, and then we'll move on. Then diving a little bit deeper into those customer relationships is channels. So these are the specific channels that are really connecting with your audience. Which channels do they prefer to use? Which ones have you used and seen success with? Yeah. And with these, you want to really jot down the costs associated with it too, since not all channels are going to be free. Like social media is a free channel to use, but maybe that chat support software that you use for your business costs $290 a year. You want to really lay that out so you have that foundation of the communication channels you're going to have with your audience. And speaking of costs, let's move on to cost structure. So this is where you want to lay out all the different costs that are going to be associated with your business. So you definitely want to include your fixed and variable costs here as well. We actually just talked about that in a video that you can check out right here of pricing strategies to help you make a profit as a business. Yeah. And these cost structures, well, it's literally everything you pay for, whether it's your rent, if you have an office location, you're hosting your, whatever bills that you have in order to maintain and support your business, go ahead and lay it out all right here as a web designer. I'm working from home. I'm freelancing. So I don't have an office. So most of my, my bills are going to come from like say hosting, because I got to host my clients websites, premium plugins to really elevate the sites themselves, SEO optimization, because I'm, again, I have that SEO professional. That's my key partner. I'm paying him optimization and anything else that you have here, go ahead and add it in here and include the costs associated with each one. So you have a visual representation of the bills that you have. And it's important to stay updated with those variable costs as well, since they are likely to change. Yeah. It's like with the premium plugins, I'm not always going to have the same plugins on every site. Some clients may need more, some clients may need less. And last, but certainly not least is revenue streams. So this is the framework of how you're actually making that money. Cue the money gun. No money gun. We lost budget. But yeah, those revenue streams are all about how you're going to be paid. So if you're an online store, that's basically people come to your site and buying your products, your restaurants, people coming to sit down and eating your food. For me as a service based business, it's every client that I get on. So really want to map out how you see how you're going to get paid and basically the service is associated. So if a basic site, I charge 3350 for a basic site, add that down for e-commerce 6000 for whatever it is, continue adding those services in. So you can kind of get a ratio of cool. I make this much from this product, but I have all these costs in my cost structure. You can start to really map out like how many products or services you need to buy to stay afloat. Well, thanks so much, Nealey, for showing us how to create a business model canvas. That was awesome. Yeah. And that business model canvas is a constant work in progress. As you progress through your business, you're going to constantly refer back to it and possibly an update and change it as your business grows. Yeah. And why not create a business model canvas today? All right. Well, thanks for watching. Be sure to like, comment and subscribe to our channel. While you're there, ring that bell. So you get these episodes first. This is the journey. We'll see you next time.