An effective business plan is key for outlining your goals and developing your business strategy. It can also be a critical tool for securing funding from investors and spotting potential problems before they occur.
However, due to its importance, a business plan can be a lengthy and time-consuming document to create. According to research from Barclays, one in four UK business don’t bother to create a plan, meaning that they lack a proper strategy for growth.
This is where the Business Model Canvas comes in. Developed by Swiss business theorist, author and consultant Alexander Osterwalder, the Business Model Canvas is a strategic tool that acts a one-page supplement to a full business plan.
Due to its simple layout, the Business Model Canvas allows you to plan in a highly visual way. It can be used to test the viability of your business strategies and can even be adapted for companies that don’t pursue revenue growth as their primary objective, such as charities.
This infographic provides a glimpse of the Business Model Canvas:
Accounting software expert Sage has provided a useful guide with further information on the advantages offered by the Business Model Canvas. The visual also includes tips on how to fill in the different sections of the template.
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