--- title: What is Business Model Canvas and how does it work? description: What is business model canvas, how it does it work and what advantages does it have - you can read more in this article. image: https://www.lead-innovation.com/hubfs/Imported_Blog_Media/creativity-819371_640-2.jpg --- [Skip to content](https://www.lead-innovation.com/en/insights/english-blog/what-is-business-model-canvas#main-content) [![lead-innovation-logo](https://www.lead-innovation.com/hubfs/lead-innovation-logo.svg) ![lead-innovation-White logo](https://www.lead-innovation.com/hubfs/Assets%20-%202022/lead-innovation-White%20logo.svg)](https://www.lead-innovation.com/en/) - Services - Innovation We support you in establishing and refining innovation management as well as in developing new products, services, and business models. - [Innovation analysis in accordance with ISO 56002](https://www.lead-innovation.com/en/innovation-analysis) - [Innovation strategy & roadmap](https://www.lead-innovation.com/en/innovation-strategy-roadmap) - [Innovation process](https://www.lead-innovation.com/en/innovation-process) - [Inovation culture](https://www.lead-innovation.com/en/innovation-culture) - [Lead User innovation](https://www.lead-innovation.com/en/lead-user-innovation) - [Service Design](https://www.lead-innovation.com/en/service-design) - [New business development](https://www.lead-innovation.com/en/new-business-development) - Artificial Intelligence We support you in the successful analysis, sustainable implementation, and strategic use of artificial intelligence. - [AI readiness assessment](https://www.lead-innovation.com/en/ai-readiness-assessment) - [AI strategy & roadmap](https://www.lead-innovation.com/en/ai-strategy-roadmap) - [AI use cases](https://www.lead-innovation.com/en/ai-use-cases) - Consulting We support change processes, empower leaders, and lay the groundwork for sustainable transformation. - [Change management](https://www.lead-innovation.com/en/consulting#Change-Management) - [Leadership trainings & coaching](https://www.lead-innovation.com/en/consulting#Leadership-Trainings-Coaching) - [Industry-specific reports](https://www.lead-innovation.com/en/consulting#Branchenspezifische-Reports) - [Workshop design & facilitation](https://www.lead-innovation.com/en/consulting#Workshop-Design-Moderation) - [Keynotes](https://www.lead-innovation.com/en/consulting#Keynotes) - Insights - [Success stories](https://www.lead-innovation.com/en/success-stories) - [Blog](https://www.lead-innovation.com/en/insights) - About us - [Team](https://www.lead-innovation.com/en/about-us) - [English](https://www.lead-innovation.com/en/insights/english-blog/what-is-business-model-canvas) - [Deutsch](https://www.lead-innovation.com/insights/blog/was-ist-business-model-canvas-und-wie-funktioniert-es) [Get in touch with us](https://www.lead-innovation.com/en/contact) [Innovation Management](https://www.lead-innovation.com/en/insights/tag/innovation-management) # What is Business Model Canvas and how does it work? With the Canvas business model you can visualize and test your business model, which is an indispensable step when developing a business model innovation. [Daniel Zapfl ,](https://www.lead-innovation.com/en/insights/author/daniel-zapfl) 14.06.2018 ![With the Business Model Canvas you can clearly present your business idea on a sheet of paper.](https://www.lead-innovation.com/hubfs/Imported_Blog_Media/creativity-819371_640-2.jpg) ## What is Business Model Canvas? Roughly translated, the technical term "business model canvas" means that you can clearly present your business idea on a piece of paper. This allows you to visualize your business model, detect weaknesses and test whether it can work. The BMC was developed by the Swiss economic theorist [Alexander Osterwalder](https://en.wikipedia.org/wiki/Alexander_Osterwalder) and the computer scientist [Yves Pigneur](https://en.wikipedia.org/wiki/Yves_Pigneur) in 2005. The simple tool, which is [also described in this book](https://www.amazon.de/Business-Model-Generation-Spielver%25C3%25A4nderer-Herausforderer/dp/359339474X/ref=sr_1_1?ie=UTF8&qid=1424781381&sr=8-1&keywords=business+model+canvas), has been enjoying increasing popularity ever since. ## How does a BMC work? All you need for a BMC are two things. Different colored Post-Its and an empty BMC. Print the template as large as possible so that you have enough space for your ideas. By the way, you can also make your BMC digitally. This method is suitable for teams working together via the cloud, for example. The BMC is suitable both for the analysis of your existing business model and for the design of a new idea. [![Lead new business development Get your free white paper.](https://no-cache.hubspot.com/cta/default/725052/interactive-141899173511.png)](https://www.lead-innovation.com/hs/cta/wi/redirect?encryptedPayload=AVxigLI%2ByiM6dA%2F1AM%2By6eSl3ENtPkJUHq8l%2FYRsuNPD7E41BPCf1orXXxsnw86EPr%2BAUFi710foCLyxj8UKmkhSUDqi5MUT48gny5jn2Cy1%2Ft0JsJ0r97H%2FoTIB43hxLYsBYvpF7xVKq5hpi3q1O7Hs9G1cu1pIPYOE2WUd2kUyJCj7OlcLQRgC6hD9x3wsPoh55oqyY7%2FdPCugbZBHOITSajCBhPQzyQ%3D%3D&webInteractiveContentId=141899173511&portalId=725052) Now write down the different topics. Start with the value promise and continue with the customer segments. You can also start with the customer segments and take the value promise next. However, you should always fill these two fields at the beginning. This way you always have the essentials of your business model and your target group in view. The different colors of the post-it should represent the different customer segments. A tip for new ideas: don't fall too much in love with an (own) idea. You run the risk of ignoring better alternatives. Use the possibility to test many different combinations at the BMC. ## What are the advantages of a BMC? Whether you are working on your existing business model or on a new idea - the BMC has five main advantages: **1. A look at the essentials** With the BMC you always have an overview of what your business model really is. It also shows which activities are not so important or even stand in the way of the goal. Because the BMC sharpens your view of the essentials, you can further improve your business model. **2. Basis for brainstorming** The BMC is perfect as a base to let your thoughts run free. You can also test alternative models for your business idea and find new combination possibilities. **3. Structured presentation** BMC brings your business idea into a clear structured form. This has the advantage that others can quickly understand and discuss your business model. The BMC offers an overview of your business idea from every perspective. Thus, for example, controlling, the strategy department or management quickly receive exactly the information that is important to them. **4. Dependencies and Conflicts of Objectives** With the BMC, startups can present their business idea. Corporates can also use the BMC for new projects. The BMC can also show dependencies or conflicts of objectives with existing processes. **5. Base** The BMC cannot replace a detailed business plan for your idea. But if you present your business model in a BMC, you also get a structure for your business plan. [![New business development  Get your free white paper. ](https://no-cache.hubspot.com/cta/default/725052/interactive-147755801891.png)](https://www.lead-innovation.com/hs/cta/wi/redirect?encryptedPayload=AVxigLJmlNiPsd4aXP0GdHlq%2BQ0Mga1K%2F1kAPKwDgZLHN%2BPBXwFnWOGuWVn59PpVygyq7VEa6VBds6hwxCo40OhYVTco6rxEubC8CmOQIxJNx9fOWLCUIi75Nv2PatN8YaS3AhqgZujK%2BNDQOQIq5YWE9NGEfd1gY%2BXQwzEwOKVxuP8vSr8Z0QlPNpG4crdsMbw1bapHlC83bntrFGU9qtKIKjunJoj8nA%3D%3D&webInteractiveContentId=147755801891&portalId=725052)     ### [Daniel Zapfl](https://www.lead-innovation.com/en/insights/author/daniel-zapfl) With his comprehensive experience in holistic innovation management, Daniel brings valuable insights and best practices from various industries to your innovation project. He boldly and disruptively challenges conventional ways of thinking. As a TRIZ-certified sparring partner, Daniel will support you with creative solution-finding in a reliable and structured manner. More critical than the most discerning customer, he always has an eye on the big picture. ## More articles - [Innovation Management](https://www.lead-innovation.com/en/insights/tag/innovation-management), [Trends & Future](https://www.lead-innovation.com/en/insights/tag/trends-future) ## [The 4 most important questions about creating an innovation roadmap](https://www.lead-innovation.com/en/insights/innovation-roadmap) - [Innovation Management](https://www.lead-innovation.com/en/insights/tag/innovation-management) ## [Technology Scouting as a strategic early warning system for companies](https://www.lead-innovation.com/en/insights/technology-scouting) - [Innovation & Leadership](https://www.lead-innovation.com/en/insights/tag/innovation-leadership), [Innovation Management](https://www.lead-innovation.com/en/insights/tag/innovation-management) ## [Embracing Risks in Innovation: The Antifragile Approach](https://www.lead-innovation.com/en/insights/innovation-and-antifragility) - [Innovation Management](https://www.lead-innovation.com/en/insights/tag/innovation-management) ## [Successfully apply build-measure-learn when developing ideas](https://www.lead-innovation.com/en/insights/bulid-measure-learn) - 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