Updated: January 15, 2013
I’m currently in the process of planning the relaunch of Blogger Shirts, and one of the things I’ve done lately is create a business model canvas for it.
For those unfamiliar, the Business Model Canvas (BMC), according to creator Alexander Osterwalder, is a “strategic management template for developing new or documenting existing business models.”
It is a visual chart and tool, which gives the entrepreneur, a quick but informative view of how his or her business works.
Designing your business model is an essential part of putting up a business, and is actually Step 5 in my Step By Step Guide To Starting A Business.
I’ve discussed the topic of business modeling in the article, A Simple Guide To Choosing The Right Business Model and I do hope you can read it, specially if you’re planning to start a business soon.
But for those who are just interested in learning something new today, then below is a 2-minute video explaining what Osterwalder’s BMC is all about.
Can you imagine yourself making one for your business? You should, because it really helps in evaluating your current business or analyzing a new business idea.
Below now is the Business Model Canvas that I created for Blogger Shirts. Well, it’s not exactly the canvas layout above, but the points which I’ve written under each element.
If you’re an online seller, then I’m sure you’ll find value in what’s written below. For the others, I hope it can serve as a guide when you create the BMC of your own business.
Customer Segments
- Primary: bloggers based in the Philippines
- Secondary: OFW bloggers; friends and family of bloggers
Value Proposition
“To provide bloggers a way to show, promote and take pride of their identity as a blogger offline.”
Channels
- Primary: Blogging communities in social media
- Secondary: Offline blogger events
Customer Relationships
- Self-service for simple, straightforward purchases
- Personal assistance for customized orders and support
- Communities for brand promotion
Revenue Streams
- Primary: Existing product inventory purchases – fixed price
- Secondary: Personalized shirt designs for individuals and blogger groups – dynamic price based on yield
Key Resources
- Fast loading, secure and user-friendly website
- Efficient production and inventory management
Key Activities
- Regular release of new shirt designs
- Marketing activities to promote and reinforce brand to new and existing customers
- Optimizing the shirt production, order taking, and shipping process
Key Partnerships
- Blogging communities – area-based (i.e. Cebu bloggers) and niche-groups (food bloggers)
- Raw material suppliers – shirt, silkscreen and ink
- PR firms who often work with bloggers
Cost Structure
- Domain registration and webhosting
- Materials and production costs
- Marketing expenses
Those are the things that’s currently written on my business model canvas. And as I further analyze the business, it is expected that the canvas will also change to accommodate new ideas and market findings.
