Title: 3. Task: Create a Business Model Canvas for your own Business Idea
Course: Entrepreneurship and Entrepreneurial Activities 1 cp (VIERKO TP1) > Section: Developing a Business Idea and the Possibilities to Implement it

Study outcomes

Student

- generate a business idea, taking into account customers’ needs
- find key services and information sources that support setting up a business
- determine the networks required to realize the business idea
- assess the financial preconditions for implementing the business idea

Business Model Canvas

The Business Model Canvas is a visual representation of the 9 key building blocks that form the foundations of every successful business. It’s a visual overview of your entire business on a single canvas containing these 9 key building blocks:

1. Customer Segments
2. Value Propositions
3. Channels
4. Customer Relationships
5. Revenue Streams
6. Key Resources
7. Key Activities
8. Key Partners
9. Cost

The Business Model Canvas explained: https://youtu.be/QoAOzMTLP5s

An example of Business Model Canvas: Zara. Note that the example provided is very basic and that your canvas needs to be much more detailed. (See instructions for each part of the canvas below.)

Source: The 9-Step Business Model Canvas Explained (2023 Update) (thepower.education)

Explanations of business model canvas “ingredients”:

Customer segments: It is not reasonable to try to sell everything to all possible customers. Instead, you need to think about who your product or service is targeted at. This helps you to do more targeted marketing and design products and services that meet their expectations. When you focus your resources on the right customer segments, your use of money and time is more efficient. Describe here which customer groups your company serves. How would you describe your customers? For example, what age are they, what gender do they represent, what kind of things are they interested in, what do they value, and what is their lifestyle like? Describe what problems or needs they have that your product or service addresses.

Value proposition: Describe what unique value you offer to your customers. Explain how your product or service differs from competitors' products. Why do customers choose your product or service?

Channels: Describe how you reach your customers. Explain which channels you use for selling and marketing your products and services to your customers. Where can customers buy your company's product or service? For example, do you have an online store, a brick-and-mortar store, or both? Specify which social media is appropriate for your business and target group.

Customer relationship: Describe how you maintain customer relationships. How and on which channels do you ensure good customer service? Do you have loyalty programs or other customer benefits? Explain how you collect feedback.

Revenue streams: Revenue streams refer to all the ways your company earns money. Describe the main products or services you sell. Revenue streams can include product sales and additional services offered with them. You can also create partnerships or collaborations and earn income through reselling, joint marketing, or advertising revenue.

Key resources: Describe the most important resources you need to run your business. For example, what facilities, machines, and equipment do you need to produce your products or services? Do you need staff to run your business? What digital tools and platforms do you need for your business? Describe the raw materials and materials you need to produce your products. How do you handle transportation/logistics?

Key activities: Describe the most important tasks you need to perform to produce and sell your products and services. Key activities can include, for example, product design and manufacturing, service production, marketing and sales, distribution and logistics, customer service, financial management, and personnel management.

Key partners: Describe the most important partners you need to run your business. Partners can include suppliers, subcontractors, logistics companies, advertising agencies, social media influencers, banks and financial institutions, organizations, educational institutions, IT service providers, and accounting firms.

Cost: Watch the following video (change the subtitles to English): Yrityksen talous - YouTube. Then describe the costs in your business. Also, estimate how much money you need to start your business.

Task

Create a Business Model Canvas for your own business idea.

Using your business idea from the previous task, create a business canvas adding the key services, information sources, and other networks that are essential for your business idea to succeed.

Please use this template: Business Model Canvas eng.dotx (sharepoint.com)

How to use sources AI

 Use of AI is allowed with limitations ​according to the task instructions.

You may use AI for brainstorming tasks and creating images. You cannot directly copy text generated by AI. You must write the text in your own words. When you use AI, include a reference at the end of the text: (AI application used, description of use, and date).

AI utilizes materials available on the internet, which may be incorrect or copyrighted. You must ensure that the information generated by AI is accurate. The responsibility is yours.

Submit Task

How to Submit Your Task

Submit your task by clicking the “Add submission” button below.

Submitting a text response:

1. Download and save the attached Business model canvas to your computer.
2. Write your answer in the Business model canvas.
3. Save it and attach it to your task submission.
4. Confirm submission by clicking the “Save changes” button.