Susan Royce explains how business models can help build resilience and introduces the Business Model Canvas — a tool to help arts and cultural organisations review how they create, deliver and capture value. This article was first published in JAM (issue 61 / February 2016).
The Business Model Canvas (BMC) is a one-page template for mapping business models. At the BMC’s core is the value proposition(s) that an organisation offers to its various customer groups. Desired relationships and distribution channels must be identified together with the revenue streams that they support. The left-hand side of the BMC focuses on key activities, resources and partnerships. The BMC makes it clear that a financial model is just the result of the decisions that the organisation and its customers make; if the numbers are unappealing then the model itself must be changed not just the spreadsheet.
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Next step: Developing a resilient business model