What Is a Business Model Canvas?

Ghazal Rafijamal
Jul 16
4 min read

Updated: 3 days ago

The Business model canvas - Datsuzoku Marketing

The Business Model Canvas is a strategic tool that helps you visually map out your business model on one page. It’s perfect for businesses that have some operational clarity or are structured around a service or product.

The 9 Essential Building Blocks

The Business Model Canvas includes nine essential building blocks:

Customer Segments: Define your different types of customers. Who are the people or organizations your business serves? Describe them with real-life characteristics like age, occupation, goals, lifestyle, and industry.
Value Proposition: What core problem are you solving for your customer? This section defines why someone would choose your product or service — your unique value.
Channels: These are the ways you deliver your value proposition. Consider social media, physical stores, email marketing, referrals, or e-commerce platforms.
Customer Relationships: How will you attract, retain, and grow your customer base? Will it be through personal service, automation, loyalty programs, or user-generated content?
Revenue Streams: Identify how your business will make money. Are you selling products, offering subscriptions, running ads, or using licensing?
Key Resources: What assets are essential for your business to operate? This includes people, tools, physical locations, technology, and intellectual property.
Key Activities: What do you need to do every day to deliver your value? Think about your operations, customer service, content creation, or manufacturing.
Key Partnerships: Who are the suppliers, partners, or collaborators that will help you succeed? These could be software vendors, agencies, wholesalers, or affiliates.
Cost Structure: What are your biggest costs? This helps you identify fixed and variable costs so you can manage cash flow and pricing strategies.

Best For: Service-based businesses, brick-and-mortar operations, consultants, and entrepreneurs with a clearer vision and structure.

What Is a Lean Canvas?

The Lean Canvas is a more agile version of the Business Model Canvas, developed by Ash Maurya. It’s designed specifically for startups, solopreneurs, and early-stage business ideas that are still being tested.

Its focus is on identifying assumptions, testing your concept quickly, and reducing risk. The Lean Canvas also contains nine blocks, but some sections are changed or renamed to better fit lean startup thinking:

Problem: What specific problems are you solving? List the top one to three problems your target customers face. This keeps your business rooted in solving real issues.
Customer Segments: Identify your primary and secondary customer groups. Ensure they align with the problem you’re solving.
Unique Value Proposition (UVP): What makes you stand out? Your UVP is a clear statement that explains why your solution is different and worth trying.
Solution: What’s your product or service? Offer a brief outline of your proposed solution that addresses each problem.
Channels: How will you reach your customers? Consider online ads, partnerships, SEO, content marketing, or pop-ups — whatever gets you in front of the right people.
Revenue Streams: What’s your monetization plan? Consider direct sales, recurring models, freemium upgrades, or affiliate revenue.
Cost Structure: Identify all your startup and operational costs — marketing, hosting, team salaries, tools, etc.
Key Metrics: What numbers will define success? Think customer acquisition cost, churn rate, customer lifetime value, or monthly recurring revenue.
Unfair Advantage: What do you have that no one else does or can easily copy? This could be a network, exclusive data, a personal brand, or insider knowledge.

Best For: Tech startups, solopreneurs, app developers, SaaS businesses, and anyone validating a new or experimental idea.

Business Canvas vs. Lean Canvas: Key Differences

Element	Business Model Canvas	Lean Canvas
Focus	Execution, delivery, operations	Problem-solving, testing
Best For	Established or service businesses	Startups, innovators
Customer View	Based on segments & value	Based on problem-solution fit
Partnerships	Included	Not included
Risk Factors	Less emphasized	Core focus
Unfair Advantage	Optional	Required

How to Use the 5W Method to Fill Either Canvas

Whether you’re using the Business Model Canvas or Lean Canvas, the 5W method helps you fill each section with clarity.

1. Who is your customer?

Define your ideal client.
What do they look like? What’s their lifestyle, industry, or business stage?

2. What problem are you solving?

Pinpoint the pain points.
What’s frustrating them, holding them back, or costing them time or money?

3. Where are your customers?

Where do they hang out — both online and offline?
Where do they search for solutions or recommendations?

4. When do they need your solution?

Is the problem urgent or recurring?
When is your offer most relevant?

5. Why should they choose you?

Why are you the right fit?
What’s your story, approach, or product advantage that sets you apart?

Use these questions to spot weaknesses, improve clarity, and pivot early if needed.

Final Tip

Filling out your canvas isn’t a one-time task. It’s a living document — something you revisit and revise as you learn more. Test your assumptions. Talk to real people. Get feedback. The more iterations, the closer you’ll get to a solid business plan.

Want to download a free Business Canvas or Lean Canvas template?