The bigger picture in entrepreneurial planning is centred on vision and mission of the business. In order to achieve this, entrepreneurs need to establish ways and means that will help them to achieve their goals and objectives. This is why small businesses need to understand and master the business canvas model. It helps SMEs to identify the following:
- Value Proposition– Entrepreneurs need to clarify their service or product offering to the customer.
- Segment– Know who your customers are, their class, how you will reach them (Channels), which medium of communication they prefer, and what kind of relationships do they expect from you (customer relations).
- Key activities– Clearly state the activities to be undertaken and resources (key resources) that will be needed to operationalise the vision and mission in order to achieve the intended goals. Also identify who your partners (key partners) are and why the partnership is important.
- Cost structure– Finally determine how much resources are needed and how much activities will cost you and finally establish how much customers are willing to pay for your value offering. Determine if it is worth investing considering the return on investment (revenue stream).
The above discussion is summarised in a business canvas model below:
Figure: Business canvas model