Are you an entrepreneur and would like to create your own business? At StockAgile we show you how to create a Business Model Canvas to outline your business model.
BMC is a tool to analyse, design and create business models, it gathers different hypotheses about the business idea. It is a complement to the ordinary Business Plan, its objective is to create, develop and capture value.
Its main advantages are:
- Organisational overview
- Easy to understand
To make it easier to understand each step of the Business Model Canvas, we are going to present different examples within each block on the retail store.
An example would be a retail clothing shop.
1. Costumer Segments - Segmentos de Clientes - Customer Segments
Here we list the different groups of people or organisations for whom our business model creates value.
Types of Customer Segments:
- Mass market
- Niche market
- Segmented market
- Diversified market
- Multilateral markets
Retail Clothing: 25-50 year olds, high socio-economic level, digitalisation of the trade, product for major events.
2. Value Propositions - Propuesta de Valor
The customer needs or problems that we satisfy through the value proposition. It is what makes you different from the competition and what your customer is willing to pay you for.
Some types of value proposition:
- New at
- Improving performance
- Brand and status
- Cost reduction
- Risk reduction
Retail Clothing: tailor-made customer service and exclusive product.
How the company communicates with different market segments to reach them and provide them with a value proposition.
Some types of channels:
- Sales force (sales team) / Web
- Own shops
- Partner shops
Retail Clothing: the company communicates via Instagram and email.
4. Costumer Relationship - Relationship with Customers
In this module of the Business Model Canvas we will collect the different types of relationships we have with our customers. We can have a different relationship for each customer segment.
Types of customer relationships:
- Personalised assistance
- Exclusive personal assistance
- Automatic services
- Collective creation
Retail Clothing: Trust and confidence with the customer and allow to finance the clothing items purchased by customers.
5. Revenue Sources
The cash flow the company will get from each customer segment. Although your business and model will probably evolve and could change.
Potential sources of income:
- Sale of assets
- Usage fee
- Subscription fee
Retail Clothing: monthly customer payments with financed products and online and physical sales.
6. Key Resources
The most important assets for a business to function. More or less resources will require more or less financial and intellectual efforts, agreements with third parties, etc.
Retail Clothing: whether the company will need its own warehouse, customer databases and expert sales force.
A key resource for many retailers is StockAgile's software, which was created with the aim of digitising and professionalising small and medium-sized brands, wholesale companies and shops.
It is designed to digitise processes and optimise the resources of businesses, allowing them to manage their channels in an automated way.
7. Key Activities
The most important actions a company must take to create and deliver value and make its business work. Some types:
- Web platform
Retail Clothing: stylist keeping up to date with the latest fashions, studying competitors' offers and maintaining eCommerce.
8. Key Partners - Key Partnerships
In this module we will place the network of suppliers and partners that enable the business model to function.
Motivation for partnerships:
- Optimisation and economy of scale
- Reducing risk and uncertainty
- Purchase of resources and activities
Sometimes we can place a person or company in this module as a partner who should really be listed in the customer module.
Retail Clothing: manufacturers who provide the clothes, stylists, models, delivery agents etc.
9. Cost Structure - Estructura de Cost
Costs necessary to create and deliver the value proposition, and thus generate revenue. Companies sometimes base their model on cost, sometimes on value.
Some types of cost structure:
- Fixed costs
- Variable costs
- Economies of scale
Retail Clothing: employee salaries, taxes and expenses.
With these 9 columns, the business model would be created based on who the customer is, their need or problem and what the value proposition is going to be.
At StockAgile we give a lot of importance to retail and its digitalisation, for this reason we want to provide you with more information about the POS and its great importance in this new era.