---
title: "Key Components of the Business Model Canvas"
url: "https://lumosbusiness.com/analyses/key-components-business-model-canvas/"
date_published: "2019-05-05T18:01:00"
date_modified: "2023-09-04T04:43:17"
domain: "Business model method"
format: "method"
author: "Joel Finningley"
source: "https://lumosbusiness.com/key-components-business-model-canvas/"
---

# Key Components of the Business Model Canvas

## Key claims

- In 2010, Alex Osterwalder and an online community of co-creators developed, designed, and launched the book ‘Business Model Generation.’
- There are 9 Building Blocks in the Business Model Canvas.

---

#### **In 2010, Alex Osterwalder and an online community of co-creators developed, designed, and launched the book ‘Business Model Generation.’**

[![Business Model Generation Handbook](/assets/2022/11/BM_Gen_Handbook.webp)](https://www.strategyzer.com/books/business-model-generation)

[Business Model Generation – Handbook](https://www.strategyzer.com/books/business-model-generation "Business Model Generation - Handbook")

# Business Model Canvas Components

-   [What is the Business Model Canvas?](#aioseo-what-is-the-business-model-canvas)
-   [Key Component of the Business Model Canvas](#aioseo-key-component-of-the-business-model-canvas)
    -   [Value Proposition:](#aioseo-value-proposition)
    -   [Customer Segments:](#aioseo-customer-segments)
    -   [Customer Relationships:](#aioseo-customer-relationships)
    -   [Customer Channels:](#aioseo-customer-channels)
    -   [Revenue Streams:](#aioseo-revenue-streams)
    -   [Key Resources:](#aioseo-key-resources)
    -   [Key Activities:](#aioseo-key-activities)
    -   [Key Partnerships:](#aioseo-key-partnerships)
    -   [Cost Structure:](#aioseo-cost-structure)
-   [Business Model Canvas – Downloads](#aioseo-business-model-canvas-downloads)
-   [Additional Resources](#aioseo-additional-resources)

In just under a decade, the book has revolutionized, *for many*, the way that we plan, forecast and roll out new businesses. The book clearly defined what a business model is:

> “the rationale of how an organization creates, delivers and captures value.”

And they created a strategic, visual tool known as the business model canvas. Why?

> I won’t lie, innovation and entrepreneurship is really hard. Anybody who tells you something else hasn’t done it.  
>   
> Yet, it’s hard like any interesting profession is hard. You need to learn the skills and then practice, practice, practice. Same as becoming a doctor or architect.
> 
> — Alex Osterwalder🇨🇭 (@AlexOsterwalder) [April 29, 2019](https://twitter.com/AlexOsterwalder/status/1122823032945434625?ref_src=twsrc%5Etfw)

Innovators, entrepreneurs, executives and dreamers alike needed a tool to visually map out, share, dissect, rework, and ultimately refine their ideas and innovations into a structured format.

## **What is the Business Model Canvas?**

There are 9 Building Blocks in the Business Model Canvas.

![](/assets/2022/03/BMi-Canvas_thumb.webp)

## **Key Component of the Business Model Canvas**

### **Value Proposition:**

![](/assets/2022/03/ValueProp_thumb.webp)

What unique value does a company’s product or service create for customers?

### **Customer Segments:**

![](/assets/2022/03/CustomerSegments_Thumb.webp)

What group(s) of customers is a company targeting with its product or service?

### **Customer Relationships:**

![](/assets/2022/03/CustomerRelationships.webp)

How does a company plan to build and maintain relationships with the customers it is serving?

### **Customer Channels:**

![](/assets/2022/03/CustomerChannels_thumb.webp)

What channels does a company use to acquire, retain and continuously develop its customers?

### **Revenue Streams:**

![](/assets/2022/03/RevenueChannels_thumb.webp)

How is a company pulling all of the above elements together to create a revenue stream(s) and generate cashflow?

The above 5 Building Blocks represent the right side of the canvas, and contribute to the **Revenue side** **of the business model**.

![](/assets/2022/03/CanvasRightSide_thumb.webp)

### **Key Resources:**

![](/assets/2022/03/KeyResources_Thumb.webp)

What assets and knowledge does a company possess that allow it to deliver its value to customers in ways that other companies can’t?

### **Key Activities:**

![](/assets/2022/03/KeyActivities_Thumb.webp)

What activities does a company engage in that allow it to execute its strategy and either establish a presence in the market or gain market share?

### **Key Partnerships:**

![](/assets/2022/03/KeyPartnerships_thumb.webp)

What strategic and cooperative partnerships does a company form to increase the scalability and efficiency of the business?

### **Cost Structure:**

![](/assets/2022/03/CostStructure_thumb.webp)

What are the key costs associated with running the business and how can key partnerships/resources be leveraged to reduce the cost structure?

The remaining 4 Building Blocks come together to form the left side of the canvas, and contribute to the **Cost Structure of the business model**.

![](/assets/2022/03/CanvasLeftSide_thumb.webp)

## **Business Model Canvas** – Downloads

[Business Model Canvas – PDF Download](/assets/2022/03/BusinessModelCanvas.pdf)

[Business Model Canvas – PPT Download](https://lumosbusiness.com/wp-content/uploads/2022/03/BusinessModelCanvas.ppt)

[Business Model Canvas – KEY(note) Download](https://lumosbusiness.com/wp-content/uploads/2022/03/BusinessModelCanvas.key)

## Additional Resources

[Business Model Toolkit](https://lumosbusiness.com/business-model-toolkit/)