Business Model Canvas
Framework
IRON LAW: All Nine Blocks Must Be Completed and Consistent
The BMC is a SYSTEM — each block depends on others. A value proposition
without a matching customer segment is an invention, not a business.
Revenue streams without cost structure analysis is wishful thinking.
Fill ALL nine blocks and check that they tell a coherent story.The Nine Building Blocks
| # | Block | Question | Right Side (Value) / Left Side (Efficiency) |
|---|---|---|---|
| 1 | Customer Segments | Who are we creating value for? | Right |
| 2 | Value Propositions | What value do we deliver? | Center |
| 3 | Channels | How do we reach customers? | Right |
| 4 | Customer Relationships | How do we interact with customers? | Right |
| 5 | Revenue Streams | How do we make money? | Right |
| 6 | Key Resources | What do we need to deliver value? | Left |
| 7 | Key Activities | What must we do well? | Left |
| 8 | Key Partnerships | Who helps us? | Left |
| 9 | Cost Structure | What are the major costs? | Left |
Block-by-Block Guide
Customer Segments: List distinct groups with different needs. Mass market? Niche? Multi-sided platform?
Value Propositions: For EACH segment, what problem do you solve or need do you fill? Be specific — "quality" is not a value prop. "Same-day delivery of organic groceries" is.
Channels: How do customers discover, evaluate, purchase, receive, and get support? Map the full journey.
Customer Relationships: Self-service? Personal assistance? Community? Automated? Co-creation?
Revenue Streams: For each segment: what do they pay? How? (subscription, transaction, licensing, advertising, freemium)
Key Resources: Physical, intellectual (IP, data), human, financial — what's essential?
Key Activities: Production? Platform management? Problem solving? Sales?
Key Partnerships: Suppliers, strategic alliances, joint ventures. WHY partner? (optimization, risk reduction, resource acquisition)
Cost Structure: Fixed vs variable. What are the biggest cost drivers? Cost-driven or value-driven model?
Analysis Steps
- Fill all 9 blocks with sticky-note level detail (short phrases)
- Check CONSISTENCY: Does the value prop match the segment? Do channels reach the segment? Do revenue streams justify the cost structure?
- Identify RISKS: Which blocks have the most uncertainty? These are your riskiest assumptions.
- COMPARE: Map current model and proposed new model side by side
Output Format
# Business Model Canvas: {Business}
## Canvas
| Block | Description |
|-------|-----------|
| **Customer Segments** | {who} |
| **Value Propositions** | {what value, for which segment} |
| **Channels** | {how you reach and serve} |
| **Customer Relationships** | {type of relationship} |
| **Revenue Streams** | {how you make money} |
| **Key Resources** | {essential assets} |
| **Key Activities** | {critical operations} |
| **Key Partnerships** | {key partners and why} |
| **Cost Structure** | {major cost categories} |
## Consistency Check
| Connection | Consistent? | Notes |
|-----------|------------|-------|
| Value Prop ↔ Segments | ✓/✗ | {match?} |
| Channels ↔ Segments | ✓/✗ | {reachable?} |
| Revenue ↔ Cost | ✓/✗ | {profitable?} |
## Riskiest Assumptions
1. {block: assumption that needs validation}Gotchas
- BMC is a starting point, not an answer: It structures thinking but doesn't validate assumptions. Each risky block needs Lean Startup-style testing.
- Revenue model is the hardest block: "Users will pay" is an assumption. How much? How often? Willing to pay based on what evidence?
- Multi-sided platforms need separate segments: Uber has drivers AND riders. Each segment has its own value prop, channels, and revenue model. Map both sides.
- Don't confuse activities with resources: "Software development" is an activity. "Engineering team" is a resource. "Source code" is a resource. Separate them.
- BMC should be a living document: Review and update quarterly. Business models evolve — the canvas should reflect current reality, not the original plan.
References
- For value proposition design deep-dive, see
references/value-prop-canvas.md