Business model canvas plays a significant role in generating revenue. This is an important component of the sustainable business which, unfortunately, often remains overlooked. The experience and observations show that if the entrepreneur underestimates the business model canvas and decides not to devote time to its development, he or she makes the first step towards business collapse.
Developing a startup app, a vision about its target audience, popularity and potential profit is blurred. You cannot travel in time to make sure this app will take your business to the top. However, you can make a business model canvas for mobile app to clarify the nearest horizons and build predictions. This graphical representation of your business architecture is a set of experiments that will eventually bring the expected results. But you probably don’t have enough time and resource to play around: real actions need to be taken to develop as a precise canvas as possible. And we know how to do it!
Take a look at the list of major components of the canvas.
Building the business model canvas: components and essentials
There are 9 critical elements to analyze and include in the canvas:
- Business partners;
- Value proposition;
- Resources;
- Key activities;
- Sales channels;
- Customer segments;
- Customer relationship;
- Expenses;
- Income.
Each of them is indispensable. Only well-thought table including each of these elements will provide value for your company. So now, let’s dig into templates’ elements:
Business partners
Relying on our own experience, we can confidently say that without a reliable partnership, it is pretty hard to survive in the business world. So thinking over your business app canvas, don’t forget about your partners.
Depending on a type of your company, this may be the following subjects of cooperation:
- Co-founders that have contributed to the idea development and now are able to handle different aspects of work;
- Contractors, or independent companies that help you with software development, marketing and SEO, legal affairs etc;
- Suppliers who provide you with needed products or services if required.
Value proposition
You can only make money on an app that solves real troubles. This point includes the list of all competitive advantages your app may demonstrate. This should be an in-depth explanation of why actually people need to use your app. Here are key things to include to this point:
- Uniqueness
Explain here,l what’s your novelty and what needs your app will satisfy.
- Cost
Analyze the market and offer the initial price that is slightly lower in comparison to similar solutions. In such a way, you will open the first gates to customers hearts.
Resources
There is no chance to get a splendid product out of nothing. You need to invest some intellectual and physical efforts to get an outstanding mobile app. So this chapter needs to be included in the canvas, too.
What exactly should be mentioned?
- Human resources, or all specialists that work at your company;
- Financial resources with all investments, funds, credits and similar;
- Intellectual resources like trademark, copyrights, patent etc;
- Physical resources like office, hardware, devices.
Key activities
Depending on a sort of your business, you need to decide how to spread information about it and bring the first users to the Download button.
If we talk about the online business only, you may need to think over a powerful online marketing campaign. Add newsletters, SEO and SMM, online ads etc to this section.
In a case with hybrid business, where offline activities take place, too, you need to pay attention to physical warehouses, shipping tasks etc.
Sales channels
How do you plan to deliver your app to the users? Are there any channels besides App Store and Play Market you’d like to employ? List possible options in this section. Our experience shows 2 most profitable ways you should consider and add to the canvas:
Selling on a website
If you don’t have a company’s website yet, we can help you with it. If you do, consider an option of posting your app here. With a powerful marketing campaign, you may engage many visitors and users.
Selling on social media
Here, you may need SMM expert’s services. But keep in mind that first of all, you need to have well-developed company’s profiles.
Customer’s portrait
On your way to App Store top list, you need to define the target audience or the segment of potential who will be interested in your solution. To add this block to the app canvas, analyze the following qualities of your potential users:
- Age;
- Occupation;
- Location;
- Circle of interests;
- Key needs;
- Possible pain points.
Besides, you need to define the reasons why they would like to download your app, and what factors influence their decision making.
Relationship with customers
This section contains a description of how you plan to interact with your customers. Several options are available:
Personal support
In this case, customer support specialists communicate to customers directly and help to address potential issues;
Self-service
An app is powered with special functionality that helps customers to deal with potential issues on their own. Here, even chat bots may participate; however, yet, customers prefer to interact with a live agent instead of a bot.
Customer community
Customers form the entire communities and share the experience there.
Expenses
Sketch your vision of cost structure. Take into consideration the following things and add to the canvas the ones that work for you:
- Costs needed to establish your company legally;
- Office rent and contiguous costs;
- Costs for equipment and hardware;
- Software maintenance costs;
- Employees’ salaries;
- Advertising etc.
Income
App’s monetization is a whole chapter to add to your business plan. Along with that, you need to describe your initial vision of a revenue stream in the canvas, too. You can make a profit from selling an app. You can employ a commission-based approach and grow your income on in-app transactions. There is always a chance to offer subscriptions or pack your app with ads.
There are numerous ways to build your income. Probably, in future, you will test them to find the most beneficial one. But first of all, develop the canvas that contains significant information about your future app.
In conclusion
There will be no better time to start than right now. And while you still have some hesitations about a perfect business model canvas for a mobile solution, someone else may have already begun to act.
If you have any doubts, just let us know. If you need any help with high-quality mobile solution planning and development, just let us know. Will help you to build a detailed canvas, the gorgeous app, and the viable business.
