Entrepreneurs starting a new venture need to answer a basic question: what is your business model, how will you earn money? Answering this question requires a framework for describing a business. A good recent definition of a business model is a description of “how an organization creates, delivers and captures value” (Osterwalder & Pigneur). An organization can be a single entity or a collection of entities working together to deliver a product or service that creates value for a customer.
The Business Model Canvas is a convenient visual framework for talking about a business model. It is a poster format chart that enables 9 elements of a business model to be captured and discussed by a group of people working together. The nine elements are visualised in the cartoon at the right.