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Business owners must come up with their own business model template as it contains the plan of the company for making a profit. In your business model canvas template, you identify the goods or services you plan to sell, your target market, and the anticipated expenses. Any new business which is still in development must have its own business model canvas sample.

How does a business model work?

A business model template is a type of high-level plan for your business to operate profitably in the market. The main component of an effective business model canvas PDF is its value proposition. This refers to the description of the products or services offered by the business and why customers would find these appealing.

Ideally, you should state your value proposition in such a way that shows why your products or services stand out from the competition. A BMC template for new business must also contain your financing sources and your projected startup costs.

Other information to include is your target market, your marketing strategy, a review of your business’ competition, and projections of your expenses and revenues. One of the most common mistakes people make when creating their business model is that they underestimate the funding costs until the business becomes profitable.

It’s important to count costs when introducing a new product or service but this isn’t enough. You must make sure that your business keeps on running until your revenues exceed your expenses. The business model canvas template might also contain your definition of opportunities for partnering with businesses which are more established.

Downloadable Templates:

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Types of business models

If you’re planning to start a business, you don’t have to invent your own business model template. There are so many different types of business model canvas samples which you can download. Then all you have to do is customize the content and format according to the needs of your business.

Downloading a business model canvas PDF makes your task easier so you can focus more on what to write in it. The best part is that there are different types of BMC templates for different types of businesses. Here are some of the most common examples of these templates:

  • Advertising
    This type of business model has existed for years and has evolved into something very sophisticated as we have moved from print to online. The basics of this model focus on coming up with content that will interest people then displaying this to viewers or readers.
    In this type of model, there is a need to satisfy two groups of customers, namely your advertisers and your viewers or readers. The latter may or may not pay you but the former definitely will.
  • Affiliate
    This type of business model is somewhat related to the advertising model with a few variations. You would typically find this online, therefore you would use links which you embed in your content rather than easily identifiable visual advertisements.
  • Brokerage
    When you’re in this type of business, you help facilitate transactions between sellers and buyers. You would earn a fee for each of the transactions either from the seller or the buyer or even from both of them.
  • Concierge or customization
    This business model involves taking existing services or products and then adding customized elements to the transaction. This process makes each sale unique for the customers.
  • Crowdsourcing
    If you think you have the capacity to gather a large group of people to contribute content to the website of your business, then you could go into the business of crowdsourcing. This type of business model is often paired with advertising to increase the chances of generating revenue.
    If you want to succeed in this type of business, make sure that you provide the right kinds of rewards or incentives to the people while still focusing on building a viable business.
  • Disintermediation
    If you’re planning on manufacturing a certain kind of product which you want to sell in stores, you would have to work with several middlemen in order to get your products from a factory all the way to the store shelves. But when you use a disintermediation business model, you sidestep these middlemen.
    You sell your products to the customers directly. In doing this, you don’t have to deal with a lot of costs. Also, you would be able to build direct relationships with your customers.
  • Fractionalization
    Rather than selling your whole product, you can simply sell a part of it using this type of business model. That way, you would still have control over the product while you earn money off it.
  • Franchise
    This is a very common type of business model, especially in the restaurant industry. Here, you would sell a plan or “recipe” for starting and for running a business to interested parties. You would sell access to your brand while offering your support services too.
    Then you would help new franchise owners to set up their businesses too. This type of model means that you would sell access to a working business model which you have developed.
  • Freemium
    This type of business model refers to when you give part of your product or service to your customers for free. Then you charge them for premium services of features. This means that you would only charge customers who would like to have access to advanced features will.
  • Leasing
    For this type of business model, you have to come up with an agreement with an expiry. As the end of the agreement, the customer returns the product to you. This is very common for high-priced products which customers cannot afford to purchase.
  • Low-touch
    This business model involves your business lowering your prices in exchange for fewer services. If your customers want to avail of additional services, they would have to pay extra.
  • Marketplace
    Here, you permit sellers to list the products they’re selling to provide customers with an easy way to connect with sellers. This type of business model allows you to generate revenue from several sources and you can use it for both services and products.
  • Razor Blade
    This business model involves you selling a durable product lower than its cost for the purpose of increasing volume sales of a disposable but high-margin component of said product. In some cases, businesses practically give the components away since they know that customers cannot use the product without purchasing the other components.
  • Reverse Razor Blade
    This is the exact opposite of the razor blade business model where you offer high-margin products while promoting the sales of low-margin companion products. Just as with the razor blade model, you entice your customers to join a kind of ecosystem of your products to keep your customers coming back for more.
  • Reverse Auction
    For this business model, you would present your lower prices to your buyers first. This gives them the option to select these prices. You would typically see such business models when contractors offer bids to work on a specific project or when you’re shopping for mortgages.
  • Subscription
    This type of business model is becoming more common these days. Here, you would charge your consumers with a fee to subscribe to your services. Although this used to be very common with newspapers and magazines, you can now find it in service industries too.

These are some of the more common types of business model templates you can find online. If your business doesn’t fit into any of these models, you can simply search online to find a template which you can use.

Using a business model template

Successful businesses created their own business model template at the beginning. This model allowed them to meet the needs of their clients by offering a competitive price while maintaining sustainable costs. As time goes by, business owners need to revise their business model canvas template to reflect the changes in market demands and business environments.

Investors and analysts can assess the success of their business model by taking a look at the gross profit of the company. This refers to the total revenue of the company minus the cost of sold goods. When you compare this value to the main competitors, it gives you a good idea of how effective your business model is.

However, relying solely on gross profit might mislead you. Therefore, you must also examine your net income or cash flow. This refers to the gross profit minus your operating expenses. This shows you the amount of real profit generated by your business.

The two main levers of a successful business model are costs and pricing. When you raise your prices, you can find inventory at lower costs to increase your gross profit. Despite this, a lot of analysts still consider gross profit as an important indicator when evaluating business plans.

When you have a good gross profit, this suggests that you have a sound business plan. But if you have too many expenses, you may have to make a few modifications to correct this issue. The bottom line is that when you have a superb business model, you can ensure that your business will run smoothly.


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