Business Plans – A Truly Original Approach

Ages ago I suggested that you could write an effective business plan inside 5 minutes, I still subscribe to the theory that a good business plan is one that helps you achieve what you want rather than details what you already know.

However, a few days ago I came across this business plan concept and I really like it.

Reinventing Business Plans

I take no credit for this, but I do really like it.

The Business Model Canvas takes a different approach to things, it deals with 9 key areas and gets you to look a things in a more practical manner. Watch the video below to understand what it is all about, it will change your perception of business planning.

What It Does

The Business Model Canvas is based around 9 areas, these are;

• Customer segments (your audiences)
• Value propositions (the product or service you provide)
• Channels to reach customers (distribution, stores)
• Resources (what you need to be able to achieve)
• The type of relationships you want to establish with your customers
• Revenue streams you generateThe key resources you have to work with (capital, talent)
• The key activities you can use to create value (marketing, engineering)
• Your key partnerships (who can help you leverage your model)
• The cost structure of the business model (what you must invest)

The model describes the different areas as ‘building blocks’ which I really get, after all a business plan should be about building a successful enterprise, each block supports the next and it takes all of them to make the structure strong.

This type of model is already used by many new start-ups but also by P&G, GE and 3M to name a few.

Watch the video, see what you think but I suspect you may be about to change your view on business plans and how to construct one.

By Dave Farmer

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The Business Model Canvas can be seen in more detail, please check out the creators. It is not our invention, just one we think is fantastic and should be shared.