BUSINESS MODEL CANVAS

Business Model Canvas
Key Partners	Key Activities	Value Proposition		Customer Relationships	Customer Segments
	Key Resources			Channels
Cost Structure			Revenue Streams

The Business Model Canvas references nine (9) categories referred to as the building blocks of an organization.  These categories are:-

These categories are:-

1. Customer Segments
   These are the people or organizations for which the business creates value.


2. Value Proposition
   This is how an organization distinguishes itself from the competition by solving a problem or satisfying a need. You want to create a value proposition for each customer segment with groups of products that create value for customers. 


3. Channels
   These are the touch points through which you interact with customers to deliver value.   


4. Customer Relationships
   This outlines the type of relationship you establish with customers.


5. Revenue Streams
   The outlines how and through which pricing mechanism your business model is capturing value or deriving income from customer segments. You can determine for example the number of customers needed on an annual basis to breakeven or generate profits.


6. Key Resources
   This identifies the infrastructure to create and deliver value.  It shows assets that are key and indispensable to the business model. These include physical, financial and human resources.


7. Key Activities
   This shows the things you need to do in order to create value and perform well.


8. Key Partners
   You may not have all the resources to perform all the key activities and so you need to identify who can help you leverage your business.


9. Cost Structure
   This gives insight into what the minimum turnover must be to make a profit.

Registering your business is a smart choice for entrepreneurs serious about business success for a number of reasons:

• It provides a unique and distinct identity
• Business registration indicates that you are a legitimate business that can attract customers/clients and build your reputation.
• You may be able to receive supplier discounts that you may not be able to access if you are unregistered.
• It facilitates debt and other type of financing through financial institutions and investors.
• The business is eligible to benefit from technical assistance, grants and loans from the Government.

Note: Businesses in Jamaica are registered through the Companies Office of Jamaica. The first step is to decide on the legal structure of the business. There are two basic structures:-

1. A Company - a commercial enterprise registered or incorporated under the Companies Act. (A company can be either be Non Profit (Charity, Club, NGO etc) or Profit Generating)
2. A Business - A sole trader, partnership or trade name registered under the Registration of Business

These are any business entities organized for profit, with a place of business located in Jamaica, and which operates primarily within Jamaica or makes a significant contribution to the Jamaican economy through payment of taxes or use of Jamaican products, materials or labour. These companies;must operate in the productive sector; and should at least be registered as a sole trader. The table below defines the characteristics of the MSMEs:

Firm Size	Number of Employees	Total Annuals Sales/Turnover
Micro	≤ 5	≤ J$15 million
Small	6 – 20	> $15 million ≤ J$75 million
Medium sized	21 -50	> J$75 million ≤ J$425 million

If you are a Micro, Small or Medium-sized business, approximately how much was your annual sales last year?

Less than J$2 million
J$2 million – J$5 million
J$5 million – J$15 million
J$15 million - J$75 million
Over J$75 million