How to use business model canvas

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Business model canvasYou all know the business model canvas! It's been a great help when analyzing business models. During my early M&A practice, I've noticed that the standard version of business model canvas misses out important areas: team, traction, funding, key stakeholders, risks, marketing, competition, marketing. You can find the quick and full business model canvas at the end of this article. 

TEAM

Who are the founders?

-track record, skills, how independent is copmany from its founders?

-are founders ready to step back and hire professional CEO?

Relevant background & experience of team members?

-track record, skills, who are the most valuable expoerts?

What experts do you lack?

 -what skills are cruicial for your business success?

 KEY STAKEHOLDERS

Who are the key people, customers, vendors, authorities for business plan execution?

 RISK

What is the risk matrix - list of risks (legal, market, operations) with probabilities and mitigants.

COMPETITION

What is the market opportunity / why competitors miss it?

What is the base of market competition: price, quality, differentiation, niche?

Who are key players and what is their strategy?

TRACTION

Active users

User churn rate / Retention rate

Conversion rate

User engagement

ARPU, LTV, LTV / CAC

What are the industry benchmarks?

FUNDING

How much money have founders invested?

Who are existing investors?

What is the total round size?

What is the minimal participation?

What is expected valuation?

What is the amount, Purpose, Timing

KPI / goals & deliveries for an investment round

Valuation, Cap table

Form of investment

Downside protection

MARETING

How do you approach customers?

How do you retain customers?

What is you marketing positioning (perceived value, price, distribution)

What are you distribution channels?

Customer acquisition cost?

FINANCIALS

Revenues (sources, growth, diversification)

Cash burn / OPEX breakdown

Must have investments (one off / recurring)

B/E point?

ARPU, customer lifetime, LTV

How often does client buy

Revenue diversification (product, region)

 

The quick and full version of a business canvas tool:

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