Business Model Canvas
A working Business Model Canvas (BMC) — Alexander Osterwalder's 9-block
strategic management template that captures how an organization creates,
delivers, and captures value.
When to use this skill
- Designing the business model for a new product or company
- Refreshing the BMC after a strategic pivot
- Stress-testing the assumptions in an existing model
- Aligning leadership on how value flows through the business
- Comparing two or more candidate business models
- Onboarding a new exec / investor to the business
The 9 building blocks
- Customer Segments — Who do we serve? (mass market, niche, segmented, diversified, multi-sided)
- Value Propositions — What value do we deliver to each segment?
- Channels — How do we reach customers? (own, partner; direct, indirect; physical, digital)
- Customer Relationships — How do we acquire, keep, and grow each segment?
- Revenue Streams — How does the customer pay? (one-time, subscription, usage, licensing, advertising)
- Key Resources — What assets are required? (physical, intellectual, human, financial)
- Key Activities — What do we do to deliver value? (production, problem-solving, platform/network)
- Key Partnerships — Who helps us? (strategic alliances, JVs, supplier relationships)
- Cost Structure — Where do costs come from? (cost-driven vs value-driven; fixed vs variable)
Clarify First
Before building the canvas, confirm these inputs. If any is unknown or vague, ASK — do not assume:
Stop rule: ask only the 2-3 that most change the output. If the user says "just draft it," proceed and list your assumptions at the top of the artifact.
Workflow
Step 1 — Draft per block
Start with Customer Segments and Value Propositions (these drive everything else).
Then fill: Channels, Customer Relationships, Revenue Streams. Then: Key Resources,
Activities, Partnerships. Finish with Cost Structure.
Step 2 — Validate the chain
For each Customer Segment, trace: Segment → Value Prop → Channel → Relationship →
Revenue. If you can't connect these, the model has a gap.
Step 3 — Stress-test assumptions
For each block, list the top 2-3 assumptions and rate (high / medium / low) on:
- Evidence (do we know this is true?)
- Riskiness (what breaks if wrong?)
- Testability (can we run a cheap experiment?)
Step 4 — Run canvas_validator.py
Audit the canvas for: empty blocks, ungrounded value-prop / segment matches,
revenue / cost imbalance, segment-channel-relationship coherence.
python3 project-management/strategy-frameworks/business-model-canvas/scripts/canvas_validator.py \
--input canvas.json --format markdown
Step 5 — Iterate
Most first drafts are wrong in interesting ways. Plan to revise 3-5 times.
Decision frameworks
Which type of business model?
| Pattern |
Examples |
Characteristics |
| Unbundled |
Investment banking (advisor + product) |
Different segments; different value props |
| Long Tail |
Netflix, Amazon |
Niche x volume |
| Multi-sided platform |
Visa, Airbnb |
Connects 2+ segments; network effects |
| Free / Freemium |
Spotify, LinkedIn |
One segment pays for another's free use |
| Open |
Open-source + services |
Free product, paid expertise/services |
Most modern SaaS = multi-sided OR freemium variant.
Cost-driven vs value-driven
| Cost-driven |
Value-driven |
| Lean cost structure |
Focus on premium value |
| Low-price value prop |
High-value, often high-price |
| Maximum automation |
High-touch service |
| Extensive outsourcing |
In-house excellence |
Most companies need to pick ONE — trying both produces mediocre everything.
Common BMC anti-patterns
- Generic value proposition. "Better, faster, cheaper" — applies to anything; means nothing.
- One segment listed as "everyone." Forces commodity positioning.
- Revenue streams with no channel. How does money flow?
- Costs that don't sum to revenue model. Unit economics broken.
- Partnerships listed without specific roles. What do they actually do?
- No coherent customer journey across blocks. Segment doesn't connect to channel.
Output expectations
After using this skill, you should have:
- A populated 9-block canvas with specific (not generic) statements
- A validation report flagging gaps, ungrounded assumptions, coherence issues
- 2-3 prioritized experiments to test the riskiest assumptions
- References to other strategy skills (lean canvas for startup-stage; value-proposition-canvas for the VP block)
References
references/canvas-framework.md — the 9 blocks deep, patterns, examplesreferences/examples-anti-patterns.md — worked examples + common failures
Related skills
project-management/strategy-frameworks/lean-canvas — startup-stage variantproject-management/strategy-frameworks/swot-analysis — internal/external strengths-weaknessesproject-management/strategy-frameworks/porters-five-forces — competitive dynamicsproject-management/discovery/value-proposition-canvas — deeper on the value-prop blockproject-management/execution/north-star-metric — what to measure once model is setbusiness-growth/pricing-strategy — pricing depth for the revenue blockc-level-advisor/ceo-advisor — strategic context for the model
1---2name: business-model-canvas3description: Build, evaluate, and stress-test a Business Model Canvas (Osterwalder) across all 9 blocks. Use when designing or refreshing a business model, auditing a canvas for gaps, exploring monetization, or aligning on the model's assumptions.4license: MIT + Commons Clause5---6
7# Business Model Canvas
8
9A working Business Model Canvas (BMC) — Alexander Osterwalder's 9-block
10strategic management template that captures how an organization creates,
11delivers, and captures value.
12
13## When to use this skill
14
15- Designing the **business model** for a new product or company
16- Refreshing the BMC after a strategic pivot
17- Stress-testing the **assumptions** in an existing model
18- Aligning leadership on **how value flows** through the business
19- Comparing two or more candidate business models
20- Onboarding a new exec / investor to the business
21
22## The 9 building blocks
23
241. **Customer Segments** — Who do we serve? (mass market, niche, segmented, diversified, multi-sided)
252. **Value Propositions** — What value do we deliver to each segment?
263. **Channels** — How do we reach customers? (own, partner; direct, indirect; physical, digital)
274. **Customer Relationships** — How do we acquire, keep, and grow each segment?
285. **Revenue Streams** — How does the customer pay? (one-time, subscription, usage, licensing, advertising)
296. **Key Resources** — What assets are required? (physical, intellectual, human, financial)
307. **Key Activities** — What do we do to deliver value? (production, problem-solving, platform/network)
318. **Key Partnerships** — Who helps us? (strategic alliances, JVs, supplier relationships)
329. **Cost Structure** — Where do costs come from? (cost-driven vs value-driven; fixed vs variable)
33
34## Clarify First
35
36Before building the canvas, confirm these inputs. If any is unknown or vague, ASK — do not assume:
37
38- [ ] **Customer segment(s)** — who you serve, specifically (drives Value Prop, Channels, Relationships, Revenue — "everyone" collapses the whole canvas)
39- [ ] **Revenue model** — how the customer pays: subscription / usage / licensing / advertising (must reconcile against Cost Structure or unit economics break)
40- [ ] **Stage** — new model / pivot / mature operating business (determines whether Lean Canvas is the better tool)
41- [ ] **Cost-driven vs value-driven posture** — shapes Cost Structure and Key Activities (trying both produces mediocre everything)
42
43Stop rule: ask only the 2-3 that most change the output. If the user says "just draft it," proceed and list your assumptions at the top of the artifact.
44
45## Workflow
46
47### Step 1 — Draft per block
48Start with **Customer Segments** and **Value Propositions** (these drive everything else).
49Then fill: Channels, Customer Relationships, Revenue Streams. Then: Key Resources,
50Activities, Partnerships. Finish with Cost Structure.
51
52### Step 2 — Validate the chain
53For each Customer Segment, trace: Segment → Value Prop → Channel → Relationship →
54Revenue. If you can't connect these, the model has a gap.
55
56### Step 3 — Stress-test assumptions
57For each block, list the top 2-3 assumptions and rate (high / medium / low) on:
58- Evidence (do we know this is true?)
59- Riskiness (what breaks if wrong?)
60- Testability (can we run a cheap experiment?)
61
62### Step 4 — Run `canvas_validator.py`
63Audit the canvas for: empty blocks, ungrounded value-prop / segment matches,
64revenue / cost imbalance, segment-channel-relationship coherence.
65
66```bash
67python3 project-management/strategy-frameworks/business-model-canvas/scripts/canvas_validator.py \
68 --input canvas.json --format markdown
69```
70
71### Step 5 — Iterate
72Most first drafts are wrong in interesting ways. Plan to revise 3-5 times.
73
74## Decision frameworks
75
76### Which type of business model?
77
78| Pattern | Examples | Characteristics |
79|---------|----------|-----------------|
80| **Unbundled** | Investment banking (advisor + product) | Different segments; different value props |
81| **Long Tail** | Netflix, Amazon | Niche x volume |
82| **Multi-sided platform** | Visa, Airbnb | Connects 2+ segments; network effects |
83| **Free / Freemium** | Spotify, LinkedIn | One segment pays for another's free use |
84| **Open** | Open-source + services | Free product, paid expertise/services |
85
86Most modern SaaS = multi-sided OR freemium variant.
87
88### Cost-driven vs value-driven
89
90| Cost-driven | Value-driven |
91|-------------|--------------|
92| Lean cost structure | Focus on premium value |
93| Low-price value prop | High-value, often high-price |
94| Maximum automation | High-touch service |
95| Extensive outsourcing | In-house excellence |
96
97Most companies need to pick ONE — trying both produces mediocre everything.
98
99### Common BMC anti-patterns
100
101- **Generic value proposition.** "Better, faster, cheaper" — applies to anything; means nothing.
102- **One segment listed as "everyone."** Forces commodity positioning.
103- **Revenue streams with no channel.** How does money flow?
104- **Costs that don't sum to revenue model.** Unit economics broken.
105- **Partnerships listed without specific roles.** What do they actually do?
106- **No coherent customer journey across blocks.** Segment doesn't connect to channel.
107
108## Output expectations
109
110After using this skill, you should have:
111
1121. A populated **9-block canvas** with specific (not generic) statements
1132. A **validation report** flagging gaps, ungrounded assumptions, coherence issues
1143. **2-3 prioritized experiments** to test the riskiest assumptions
1154. References to other strategy skills (lean canvas for startup-stage; value-proposition-canvas for the VP block)
116
117## References
118
119- `references/canvas-framework.md` — the 9 blocks deep, patterns, examples
120- `references/examples-anti-patterns.md` — worked examples + common failures
121
122## Related skills
123
124- `project-management/strategy-frameworks/lean-canvas` — startup-stage variant
125- `project-management/strategy-frameworks/swot-analysis` — internal/external strengths-weaknesses
126- `project-management/strategy-frameworks/porters-five-forces` — competitive dynamics
127- `project-management/discovery/value-proposition-canvas` — deeper on the value-prop block
128- `project-management/execution/north-star-metric` — what to measure once model is set
129- `business-growth/pricing-strategy` — pricing depth for the revenue block
130- `c-level-advisor/ceo-advisor` — strategic context for the model
borghei