Approaching the Business Model Canvas
The Business Model Canvas (BMC) is a flexible tool that can be approached from two primary angles, both equally valid and potentially complementary. Your approach may be determined by your current business status or your preferred mode of operation.
Path 1: Testing for Value
Our first approach focuses on empirically validating the assumptions we make about our business. Begin by creating hypotheses - your best educated guesses about your business. These hypotheses form the basis of experiments designed to test the accuracy of your suppositions.
The evidence you collect from these experiments leads to valuable insights, informing your next steps. You might proceed as planned, recalibrate your approach, or pivot entirely.
As you gather insights, start sketching out your value proposition canvas, consisting of the Value Map and Customer Profile. Note, while the Customer Profile canvas includes a "customer jobs" section, comprehensive Jobs-to-be-Done (JTBD) methodology should be applied separately. For an in-depth understanding of JTBD, we recommend expanding your knowledge using resources from CPO.one.
Path 2: Reverse Engineering a Model
If you're working with an existing business or a well-formed idea, reverse engineering a business model can be an effective approach. Begin with your current business model and deconstruct it. Use the resulting parts to create experiments, as in the first approach.
Iteratively test and refine your model. Gather insights and use them to understand your value proposition, customer jobs, and other vital components of your business.
Remember, thorough understanding of your customers' Jobs-to-be-Done is integral to either approach. For resources on JTBD, check out CPO.one.
Important Note
Whether you're testing hypotheses or reverse engineering an existing model, remember that crafting your BMC is a dynamic process. Your business model will continuously evolve as you learn more about your business and your customers, and as your market context changes. Embrace the journey and learn as you go.