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When creating your business model canvas, it is best to keep in mind that it will take several iterations to make it great.

Facebook Business Model Canvas

Facebook Business Model Canvas

This provides a great example of what a finished business model canvas should look like. Someone made a sample canvas for Facebook and this is how it works. Firstly, you should not that sticky notes are attached as all relevant points. This is important because, as a startup improves upon their assumptions, they will add and remove sticky notes as necessary.

A startup is really a group of founders looking for a customer segment and business model. Now it is time to make you first business model canvas. First we will cover the left half of the canvas to give everyone a better idea on what to write.

Key Partnerships are companies or people, outside of your organization, that are crucial to the success of your startup. In this, Facebook must rely on Paypal as a form of currency transfer and Zynga as an app developer.

Key Activities are things your company must do to be successful. For Facebook, this means they must both improve and maintain the software and network that they run on.

Key Resources are company assets necessary to create value for the consumer. For our example, it is important for users the Facebook maintains a large customer base because social network with a small number of people is boring. Additionally, technical components of the company, namely IT and engineers are important to create an enjoyable experience for the user. Finally Facebook’s branding is valuable because it lends credibility to the user. Facebook is cool, which make users of Facebook cool.

Cost Structure is important for and business. Commerce and business is after all, only aimed at increasing wealth. Therefore, it is important to consider costs the company must incur. Facebook spends the majority of it’s cash on employees and engineers and its network and servers.

Next post, we will speak more about the right side of your business model canvas, which happens to be the most difficult, yet also the most important.