At some point in your life, you’ve likely needed to create and develop a business plan, whether as an entrepreneur or while working on a project for a client or your employer. Crafting a business plan can be an interesting challenge, and you may try to include many aspects that might not be ideal, ending up with lengthy and tedious documents. This is why building your business model with a Business Model Canvas allows you to produce a document that is legible, well-crafted, and competitive, bringing much clarity to your business.
What is the Business Model Canvas?
The Business Model Canvas (BMC) is a strategic business tool that helps you conceptualize, present, and visualize your entire business model quickly and efficiently. It is a framework where you can find all the relevant points of your business innovatively and easily.
The Business Model Canvas consists of the following elements:
• Business model: This is your company’s business model, explaining how you will create value and how you will achieve economic and financial benefits.
• Business plan: This is the economic projection expressed in numbers.
• Canvas or Framework: This is the format used to visually present the elements.
What is the Canvas model used for?
Creating your Business Model Canvas will help you discover growth opportunities in your business model. You can identify key partners, discover new ideas, and even plan future actions for your business. The BMC is organized into a matrix of 9 boxes that cover the basic components of your company’s business plan.
The Business Model Canvas was created by Alexander Osterwalder and Yves Pigneur, authors of the book “Business Model Generation,” which has become essential for entrepreneurs worldwide.
What should a Business Model Canvas include?
The business canvas includes 9 boxes, each with relevant elements:
Key Activities
These are tasks that get your business going, the ones that make your business move. They are not your products or services but are the activities that need to be performed for your business to function and progress. Osterwalder suggests you should have three types of activities in this box, and answering the following questions can help identify them:
• What activities are essential to deliver our value proposition?
• What tasks are key to the proper functioning of our distribution channels?
• What activities are crucial in our customer relationships?
• What activities are key to revenue streams?
Key Partners and Associations
Your key partners aren’t necessarily individuals; they can also be associations, companies, or entities that help complement your efforts. It’s important to consider these partners from the start as they are crucial for achieving your objectives.
• Who are our main partners?
• Who are our key suppliers?
• What key resources do we acquire from our partners?
• What key activities do our partners perform?
Key Resources
These refer to the essential resources needed for your business to operate properly, whether they be tools, personnel, financial resources, or technology.
Which communication channels will you use to inform your target market about the value you will provide? This also dictates how you will communicate.
Customer Relationships
Managing your customer relationships is crucial for business growth. Establishing and defining the type of relationship you want with your customers is important for maintaining a stable business and achieving customer loyalty. Here are some questions to consider:
• What kind of relationship does each of our customer segments expect us to establish and maintain with them?
• What relationships have we established?
• How are they integrated with the rest of our business model?
Understanding your cost structure is fundamental; remember, a business that doesn’t generate money isn’t a business. Consider fixed and variable costs, economies of scale, and outsourcing. Here are some questions to help:
• What are the most substantial costs inherent in our business model?
• Which key resources are most expensive?
• Which key activities are most expensive?
Revenue Streams
A robust revenue stream is crucial. You must clearly understand why and what customers will pay for in your business. Here are some questions to help clarify this section:
• What value are our customers truly willing to pay for?
• Why do they currently pay?
• How do they currently pay?
• How would they prefer to pay?
• How much does each revenue stream contribute to the total revenues?
Having a Business Model Canvas for your business not only allows you to start with a clear and effective structure for what you want to achieve but also enables you to quickly view all relevant aspects of your business and may even propel you to new horizons by providing clarity.
When we think about a value proposition, we sometimes get confused and think about the product or service, but it’s not just that. The value proposition goes beyond; it focuses on giving the brand a heart, a spirit.
A value proposition is not necessarily the product; sometimes it is an intangible concept that represents the brand. For instance, Tesla’s value proposition is “To accelerate the global transition to sustainable energy.” This value proposition is so strong that consumers defend the product despite the brand’s issues.
Having a solid and clear value proposition will not only help you sell products or services but will also allow you to build a community that will not only purchase from you but will also defend you because they share the same values. Where your brand aims to go is where they want to go too.
What is a value proposition?
The value proposition is the spirit or heart of your business, which encompasses all the approaches, desires, and objectives of the company; it clearly explains the product or service and how it solves problems, the specific benefits it provides, and why people should choose you. It is a way to show the unique value you bring.
What is the purpose of a value proposition?
Having a value proposition brings many benefits as a business, among which it allows customers to clearly identify the specific needs you cover, enabling you to be clearer in your messages and products.
How do I create my value proposition?
To create a value proposition, you can use tools like the business model canvas, which will help clarify your value proposition.
Creating a powerful value proposition for your business might seem difficult, but it’s not impossible. It’s important to consider all points.
Process for creating your value proposition:
1. Identify the problem your product solves: Before defining a solution, you must understand the problem. This problem should arise from your customers’ frustrations. If there is no customer frustration, there is no problem to solve. Without a problem, there is no solution, and without a solution, there is no product. It’s that simple.
2. Define your target audience: The target audience refers to the specific group of people who are most likely to need your product. This group can vary based on interests, gender, location, age, and even income.
3. Differentiate from the competition: The value proposition plays a crucial role here. It’s essential to know your competitors thoroughly to understand what makes you unique.
Once you can answer these three questions, you will be ready to create your Value Proposition Canvas following the appropriate outline.
You can use the value proposition canvas.
This canvas will guide you and help you better address your value proposition. Do you already know your value proposition clearly?
The Golden Circle is a concept presented as a circle, like its name suggests, with layers similar to onions and ogres. The three layers represent the questions: why, how, and what. The theory suggests that by answering these three questions, a company can understand the purpose of its business.
The Golden Circle is mentioned in the book Start with Why by Simon Sinek. In the book, Sinek discusses how crucial it is for brands to know why they were created and how this understanding helps them grow.
The 3 Layers of the Golden Circle
Each layer represents the questions: why, how, and what. Although they seem simple, they are a great exercise to understand a company’s purpose. In Start with Why, Sinek advises companies or their leaders to use the Golden Circle starting by addressing the why.
Golden Circle: Why?
In the first layer of the Golden Circle, Simon Sinek suggests that this is where you need to write down the purpose of your business. We must identify the reason for the existence of this business or venture, what drives and motivates all actions. This is the company’s purpose.
If the company truly identifies its why, everything moves naturally and flows. For this reason, it is the starting point for businesses—if you know why you are doing it, it gives you a direction for your entire business or venture.
Golden Circle: How?
In the middle layer of the Golden Circle, we determine and establish the strategies we will apply to achieve results aligned with the company’s purpose. This is where the company’s action or work plan is located and should always align with the company’s values.
Golden Circle: What?
In the last layer of the Golden Circle, Simon Sinek points out that this is where we must specify what the company sells or does. This layer of the Golden Circle is the easiest to understand because it involves the product or service the company sells.
Why Have the Golden Circle?
Having the Golden Circle is essential for an organization, especially if it is not clear about the reason for its existence. Having this information and understanding it allows you to conduct various marketing and communication campaigns, thus achieving better results.
By leveraging the Golden Circle, we can achieve various objectives and facilitate decision-making and good outcomes. Some of the impacts on your business include:
Inspiring Communication
Starting with the why can make all your communication exciting, impactful, and inspiring, increasing loyalty through a sense of belonging.
Example: Apple doesn’t just sell computers; it promotes challenging the status quo and innovation, resonating with a certain profile of customers.
Brand Strategy
Having a why helps the brand to be strong and coherent, achieving omnichannel presence as previously shared, which allows you to have a brand narrative that communicates clearly and maintains good communication.
Example: Patagonia, the clothing brand, achieves good communication focused on its purpose of sustainability and environmental protection, reflected in all its corporate actions, marketing, and products.
Differentiate from the Market
When you compete only by product (the “What”), you will likely compete on price. However, if you have a “Why” and “How,” you begin to compete on different variables.
Example: Southwest Airlines is distinguished not only by its low-cost flights (the “What”) but also by its commitment to friendly service and the democratization of air travel (the “How” and “Why”).
Customer Loyalty
Customers are more likely to become loyal and advocates for the brand if they can identify with the purpose, the Why of the company. This simplifies customer satisfaction.
Example: Tesla customers feel part of a larger mission towards sustainability and innovation in mobility.
Do you already know your Why, do you know why your company does what it does? If not, we recommend you start today and begin applying it.
El golden circle es un círculo, como lo dice su nombre, con capas como las cebollas y los ogros. Las tres capas representan las preguntas ¿por qué?, ¿cómo? y ¿para qué?. La teoría dice que resolviendo estas tres preguntas, una empresa puede entender el propósito de su negocio.
Cada capa representa las preguntas ¿por qué?, ¿cómo? y ¿qué? Y aunque parecen preguntas sencillas, es un gran ejercicio para entender el propósito de la empresa. En el libro Start with Why (empieza con el porqué) Sinek recomienda que las empresas o líderes de las mismas utilicen el golden circle empezando por resolver el porqué.
Golden circle ¿Por qué?
En la primera capa del círculo dorado, Simon Sinek indica que aquí es necesario escribir el propósito de tu negocio. Debemos identificar el motivo de la existencia de este negocio o este emprendimiento, lo que empuja y motiva todas las acciones. Este es el propósito de la empresa.
Si la empresa realmente identifica el porqué todo se mueve naturalmente y fluye, por este motivo es el punto de partida de los negocios, si sabes por qué lo haces te da un norte para todo tu negocio o emprendimiento.
Golden circle ¿Cómo?
En la capa intermedia del círculo dorado es donde debemos de determinar y bajar las estrategias que vamos a aplicar para lograr los resultados y que estén alineados con el propósito de la empresa, ese es el por qué. Aquí es donde está el plan de trabajo o acción de la empresa, debe de estar siempre alineado a los valores de la empresa
Golden circle ¿Qué?
En la última capa de círculo dorado Simon Sinek nos comenta que en este punto debemos poner lo que vende la empresa o lo que hace, esta capa del círculo dorado es la más fácil de entender de todas ya que es el producto o servicio que vende la empresa
Por qué tener el circulo dorado
Contar con el círculo dorado para una organización es esencial, especialmente si no tiene claro el motivo de su existencia. Contar con esta información y entenderla te va a permitir hacer diversas campañas de mercadotecnia y comunicación teniendo así mejores resultados
Cuando aprovechamos el círculo dorado podemos lograr varios objetivos y facilitarnos la toma de decisiones y buenos resultados alguno de los puntos que impactan en tu negocio son:
Comunicación inspiradora
Si comienzas con el Why (por qué) podrás lograr que toda tu comunicación sea emocionante, impactante e inspirador, logrando mayor lealtad a través de un sentimiento de pertenencia
Ejemplo : Apple no vende computadores, promueve desafiar el status quo y la innovación, esto resuena con cierto perfil de clientes
Estrategia de marca
Contar con un Why (por qué) ayuda a la marca a ser fuerte y coherente, lograr la omnicanalidad como ya te hemos compartido con anterioridad, lo que te dejará tener una narrativa de marca que comunique claramente y logres tener una buena comunicación
Ejemplo: Patagonia la marca de ropa logra tener una buena comunicación la cual se enfoca en su propósito de sostenibilidad y la protección del medio ambiente y esto se refleja en todas sus comunicaciones en todas sus acciones corporativas, mercadotecnia y sus productos
Diferenciate del mercado
Cuando compites solamente por producto (el “What”), muy seguramente vas a pelear por precio, pero si cuentas con un “Why” y “How” comienzan a competir con otras variables
Ejemplo: la aerolínea Southwest Airlines se distingue no solo por sus vuelos baratos (el “What”), sino por su compromiso con el servicio amigable y la democratización de los viajes aéreos (el “How” y “Why”).
Lealtad de clientes
Es más posible que los clientes se vuelvan leales y defensores de la marca si logran identificarse con el propósito, el Why de la empresa, esto vuelve más simple la satisfacción del cliente.
Ejemplo: Clientes de Tesla se sienten parte de una misión más grande hacia la sostenibilidad y la innovación en la movilidad.
The world of retail is vast and is a great business full of opportunities and tools that offer so much variety that it can sometimes be overwhelming for the entrepreneur. Therefore, we bring you the best points to start with in retail.
What we will share with you are not only tools but also concepts that you must fulfill or understand clearly to become a very good brand and to be easily identified in retail.
1- Value Proposition
Often, we see multiple brands in the market that do not have a clear or significant value proposition. Therefore, it’s important that when you create a product and enter the world of retail, it comes with a strong and clear value proposition.
2- Omnichannel Brand
Becoming an omnichannel brand is not difficult, but it does require meticulous and careful work, paying special attention to how you will communicate on each channel. Being an omnichannel brand means that you appear clearly and relevantly on any medium where you are communicating.
3- Ecommerce or Online Stores
When you start in the world of retail nowadays, one of the elements you must consider to achieve your goals and start selling is having an online store. Users shop online, and it’s a channel that is constantly growing, and today the investment is low thanks to tools like Shopify or Wix where you can create your website without needing to know how to program.
4- Google Merchant and Meta Merchant
Starting in the world of retail is not easy, and getting into big chains is not either, but entering Meta Merchant and Google Merchant is completely free; you just need a bit of work and to have your online store.
Having these tools will not only allow you to have a new point of sale but also greater exposure that might increase your sales by making it easier for users to buy.
5- TikTok for Positioning
We know that networks are important, not only Instagram and Facebook but also TikTok. Do not disregard any because it is important to consider that a good way to make your brand known is by taking advantage of the trends that exist and creating videos that share about the product you are selling. Soon TikTok Shop will arrive in Latin America and Mexico, where you can sell through live streams.
6- Data for Improvement
In the digital era, the use of data is not exclusive to large companies; you can use data even as a small business or even as someone who has just started. If you know how to properly handle digital tools, you can have data from your buyers from the use of CRM like HubSpot to web tools like Google Analytics, Clarity, or even use the data that Meta gives you, like Meta Library Ads to see your competitors’ ads.
7- Mercado Libre and Amazon
Entering these platforms is easy, mastering them is difficult. Although the commission is high, they are excellent for new products on the market because they allow buyers who may be a bit afraid to buy from them directly to have the opportunity to purchase on the platform thanks to the platforms protecting you against any problem.
These points are extremely important to start in the world of retail. If you manage to do good work on them, you will achieve good brand positioning and growth of your product in a way that you did not expect. We hope they will be useful.
The purchase process for a user is the same at all times, but it can last months, years, or happen in seconds. This purchase process occurs daily, and we often don’t even see it happening; it occurs without us thinking about it.
What is the Purchase Process?
The purchase process is what the consumer does before, during, and at the time of acquiring a service or product, and the process can occur over a long period of time or in a very short period. Knowing this purchase process, identifying it, and aligning it with your sales funnel is essential to achieve a good purchasing experience and good objectives.
Consumer behavior is the understanding and analysis of the factors that influence the behavior of a market when buying a product or service. To better understand it, it’s how a person decides based on time, money, and effort factors to meet their consumption needs.
This stage of the purchase process begins when the user is not so sure that they have a problem, referring even to a need. At this point, they just begin to see which companies exist and which ones catch their attention more.
Problem Recognition
In the user’s purchase process, problem recognition is the basis for there being a need to buy. The recognition that there is a need to cover a need or a problem occurs at this moment, this need can be self-generated or induced by companies through marketing and that’s when the real search begins.
Solution Consideration
At this point in the purchase process, the user is reviewing and evaluating the possible brands or companies from which they can buy, starting to research and inquire more deeply into the benefits each one offers.
Purchase Decision
When the customer reaches this point, there is no turning back; the user has already decided to make the purchase of the desired product or service knowing exactly the benefit they expect to obtain.
If at the last point of the purchase process the consumer does not get what they expected, there is a great possibility of disappointment and as we know this causes us not only to lose a customer, but they spread the word, something that would be completely opposite if this customer receives more than what they expected.
It is important to highlight other instances that have to do with the purchase process or that help you speed up the same. For example, when a user wants to buy something, they look for the product they want to acquire to have validity, whether real or not, and that it really works for what they want, and to help them with this, a very good tool is to use comments or reviews.
Sell More with Comments and Reviews
Comments and reviews can help you sell many more products, thanks to the fact that even though your product looks impeccable, your site is perfect, and you promise everything, even though it is true, your word is all they see, so having comments is of utmost importance to allow users to validate if the information is true through the experience of other consumers.
Encouraging reviews is necessary and useful, to achieve it you can carry out various strategies:
Strategies to Encourage Reviews on Your Products
Discounts for Reviews
When you manage to sell a product, you can offer users discounts on their next purchases in exchange for a review on your website or in your restaurant, even if you sell through platforms like Mercado Libre or Amazon.
Unforgettable Experience
Ensure that the process of purchasing and obtaining the product provides the user with an excellent experience so that the user’s emotion is expressed in a good review.
Email Marketing for Reviews
You can directly request the review right after they have made the purchase by sending the email directly to the users and receiving the invitation to give a review.
Using comments in your purchase process is essential and understanding that this is directly related to the sales funnel and managing to link these two to understand and solve the real problems of the customers and convince them is something that will optimize your brand and your business.
Have you ever noticed these points from your purchases or do you overlook them? What do you think about these steps we live without realizing it?
