key partners in business plan

• Key Partners in Business Model Canvas

Featured in:

© Entrepreneurial Insights based on the concept of Alex Osterwalder

In this section, you will learn about the next building block in the Business Model Canvas which is Key Partners (or Key Partnerships) that an entrepreneur needs to have to perform its key activities and ultimately provide its value proposition to its customer segment.

We will look at 1) key partnerships , 2) types of partners , 3) motivation behind partnerships , 4) key partners and value propositions , and 5) case studies .

KEY PARTNERSHIPS

A business partnership is when two commercial entities form an alliance, which may either be a really loose relationship where both entities retain their independence and are at liberty to form more partnerships or an exclusive contract which limits the two companies to only that one relationship.

The following factors are very important to keep in mind when forming partnerships:

• Right Partnership Agreements: Whether your partnership is with a business or an individual, it is important for all the relevant parties to have clear partnership agreements drafted along with legal counsel.
• Defining Expectations: Many times new businesses fail to establish their expectations from the outset leading to much confusion and conflict later. An entrepreneur needs to ensure that he has shared his expectations openly with his partner and vice versa from the beginning.
• Impact on your clients: When forming a partnership, it is important to evaluate your value proposition and your key resources and make sure your partner is filling any gaps in either. This can only be done by also evaluating how the partnership will translate to the customer.
• Win-Win situation: For a partnership to be healthy and sustainable, there need to be visible gains on both ends.
• Selecting partnerships: Some partnerships may seem lucrative in theory but fail to get off the ground practically. In addition, changes in the business context may also make some business partnerships irrelevant. In such cases, it is important to end these partnerships quickly to avoid further wastage of resources.

This building block refers to the network of suppliers and partners that make the business model effective. The reasons for a company opting for a partnership are myriad, but healthy partnerships are instrumental in making a business success or a failure. A company can optimize its resource utilization, create new resource streams or mitigate risks behind major business decisions by taking on a partner before starting a new course of action. It is important to note here that your organization maybe partnering with a number of organizations for various reasons, but not all their relationships will be key to your business.

Partnerships can change over the course of a business’ lifecycle. The types of partnerships that may be a necessity during year 1 of a start-up will differ significantly from the nature of the required partnership in year 3.

Key Questions

When evaluating the various key partnerships that your business requires, it is fruitful to analyze the nature of the partnership based on the following key questions;

• Which partnerships are critical to our business?
• Who are our critical suppliers?
• Which of our suppliers and partners are sourcing our key resources?
• What type of partnerships would suit our needs?
• What is the best cluster/ supply chain where I should be located?

[slideshare id=41589722&doc=businessmodelcanvas-swlisbon14-141115053427-conversion-gate02]

TYPES OF PARTNERS

Partners and partnerships can be categorized into four different types;

• Strategic alliances: These types of alliances are between non-competitors. So if you are working through different channels, like a news agency can supply news to both online and offline channels.
• Co-opetition: There can also be strategic partnerships between partners. Such a partnership will help spread the risk both companies may take. It may also help when both partners are trying to do something new; additionally it could mean a confirmed supply stream. For example, there is a need for earth metals in mobile phones. So securing the supply of rare earth metals could be the reason for competitors to form a strategic partnership.
• Joint-Ventures: Another thing could be to develop a joint venture in a new business. Both partners could have a mutual interest in developing new business, possibly due to the emergence of a new market or access to a new geographic area. Both organizations will only opt for such an option if they both provide some inputs into the business. Hence, a Dutch company that specializes in producing cheese might choose to go into a joint venture with milk producing local company to start making cheese in the new region.
• Buyer-Supplier Relationships: These are the most common type of partnerships which assures that you have a reliable source of supplies coming in and for your supplier this means they have a steady confirmed buyer for their product.

MOTIVATIONS BEHIND PARTNERSHIPS

Partnerships are a tricky business involving a lot of negotiation and an element of trust. There can be a number of reasons why organizations would make the decision to take on a key partner rather than doing things themselves or taking on a partner but not considering them as key to the success or failure of their business. Primarily, one of the three kinds of motivations can be attributed when a business chooses to enter a partnership.

Optimization and economy of scale

Most organizations are heavily focused on the bottom-line. And many focus on cost-cutting or smart spending through optimizing the allocation of either their resources or activities. This is the most common motivation for people to enter into partnerships of different types.

When you are looking for efficiency in your company or optimizing your productions chains, key partners can help you achieve this goal. It is unrealistic to think, as an entrepreneur that you have the resources in place to conduct all your key activities in-house. Most partnerships give organizations the ability to share their infrastructures or outsource some activities to more cost-effective options.

Citroen, Peugeot and Toyota joined hands to create a small, cheap car for the masses that they tried to sell for 5000-6000 euros. These cars looked almost the same except for the chassis and a few internal and external details.

Reduction of risk and uncertainty

If you have a good relationship with a key partner, you reduce the inherent risk that comes with doing your own business. You also guarantee supply to your business rather than being dependent on suppliers who aren’t key partners and would therefore not give precedence to your business over others.

Many competitors may form strategic partnerships to share the risk of bringing something new into the market while still competing in various aspects in the industry. A classic example of this is the advent of blu-ray technology which was developed in collaboration by some of the world’s premier consumer electronics and computer technology firms. The development of this technology was expensive and several competitors had to get together and decide that they would all be selling their products based on blu-ray technology; hence they needed to collaborate to make blu-ray technology more mainstream. The group joined hands to bring the technology to the mass market but still competes on the basis of their various blu-ray based gadgets in the consumer market.

Acquisition of particular resources and activities

If there are certain things that you don’t have in-house and which would require a heavy investment of time, money or both, a key partner who already has these processes and the infrastructure developed would come in extremely handy.

Business models can be extensive maps of the myriad activities that a business needs to perform or the endless resources required to perform these activities successfully. However, it is rare for a new company to have the resources or capabilities in place to fulfill the mandate set down by the business model. Hence, many new companies are beginning their journeys by forming partnerships that give them access to the required resources or processes that they require, but are unable to own yet. Hence, many mobile operators partner with IT companies to develop the operating system their handsets require rather than bearing the heavy investment such an endeavor would require if done in-house. This also gives the IT company a steady source of revenue as well as the advantage of publicity if the mobile manufacturer’s brand is well recognized. Bicycle companies do not manufacture their bicycle accessories. Instead, they get into selective partnerships with bicycle parts manufacturers who customize the parts like the color or size of the bicycle seat according to the preferences of the manufacturer.

Heineken is one of the most popular producers and suppliers of beers in the world, and it is especially well-known in the Netherlands, where they have created very strong relationships with bar owners. In fact, Heineken frequently invests in new bars by providing not only equipment for free but also investing in the décor of the bar. In return, the bar provides Heineken beer exclusively. Hence, Heineken gets a repeat customer for their beer while the bar owner can minimize the cost of setting up the business. Conversely, however, the bar owner is limited to selling just Heineken, which means that if Heineken increases the prices of its beers, the bar owner has no choice but to abide by the new prices.

KEY PARTNERS AND VALUE PROPOSITIONS

For fast moving consumer goods, availability is key to the success of the company and a major value proposition. For supermarkets and retail chains, distribution partners are key if you want to provide your fast moving consumer goods to the market. Your advantage is that your products will be available to everyone, but the supermarket will drive down your price and resultantly your margins significantly.

Technologies are advancing at a very high rate that increases their risk factor is well. However, if the technology forms a significant value proposition for your business, then you can take on a partner to share the risk and cost associated with the technology in question.

Focus on where you are creating value but consider that the rest can be outsourced if needed. The activities that are adding value to your value proposition must be outsourced very carefully because they are the ones that are key partnerships for your business.

Starbucks has established several key partnerships worldwide such as with coffee growers worldwide to grow eco and farmer friendly coffee beans. This key partnership is a typical buyer-supplier relationship, motivated by a need to acquire key resources. Another key partnership is with specialized coffee machine makers who make specialized coffee makers for Starbucks. Again this helps Starbucks mitigate cost because it does not have to invest in infrastructure, R&D, and manpower to create these coffee machines in-house. Instead, it is much more cost effective to partner with an organization that already holds expertise in this area and has the infrastructure in place already to cater to Starbucks’ needs. Conversely, Starbucks provides them with a steady buyer for their product as well as the added boost that the Starbucks brand holds for the coffee machine manufacturer.

A Comparative Analysis of Facebook’s and Google’s Partner Networks

Though Facebook has a number of partners in its network, it isn’t entirely dependent on any of these partners. Most of Facebook’s partners provide valuable content for its users so Facebook partners with content providers such as Netflix, Washington Post, Hulu, etc. to provide movies, articles, music and other forms of content to its subscriber base.

Conversely , Google has Google Network members who are content companies that partner with Google to provide content on for its search engine. It provides Advertisers access to these content companies web pages through the Google AdSense program and in return shares revenues from the said program with the relevant companies, leading to a mutually beneficial partnership. Additionally Google also partners with Distribution companies to attract traffic to its websites. However, these are a group of Distributors and Google does not leave itself dependent on any one distributor.

Comments are closed.

Related posts

How to Market an eBook Like a Pro

Writing an eBook is quite a challenge in itself, but the project doesn’t end when you press the …

Using Corporate Social Responsibility (CSR) to Improve Your Brand

“Social responsibility” is no longer a new term in business or other organizational settings. It has …

A Guide for Product Life Cycle Management

The progression of a product from its launch into a market, its growth and popularity and eventual …

408,000 + job opportunities

Not yet a member? Sign Up

join cleverism

Find your dream job. Get on promotion fasstrack and increase tour lifetime salary.

Post your jobs & get access to millions of ambitious, well-educated talents that are going the extra mile.

First name*

Company name*

Company Website*

E-mail (work)*

Login or Register

Password reset instructions will be sent to your E-mail.

• Scroll to top

•   / Sign Up
• HOW WE HELP CLIENTS
• schedule your conversation

Key Partners Building Block of the Business Model Canvas

Published: 19 July, 2023

Social Share:

Business Models

Table of Contents

Introduction to Key Partners Building Block in BMC

In an interconnected world, leveraging relationships with ecosystem partners has become increasingly important because it allows you to focus on your relative strengths. Think about the four different types of partnerships, including strategic alliances between non-competitors, coopetition (strategic partnerships between competitors), joint ventures to develop new businesses, and buyer-supplier relationships to assure reliable supplies.

Key Partners are essential relationships that a company has with other entities, like suppliers, manufacturers, or advisors. These partnerships provide vital support, helping the business model to function effectively in areas where it would be inefficient to handle everything on its own. Introducing our Extended Business Model Canvas – a powerful tool that takes your business planning to the next level. This innovative framework goes beyond the traditional canvas by incorporating crucial elements such as Key Partners, Business Drivers, customers, the team, and the Unfair Advantage. Unlock the full potential of your business and download the model now to take the first step towards achieving your goals and thriving in today’s dynamic market landscape.

Download the Complete eXtended Business Model package, including instructions for putting it to work for you today.

The UNITE Business Model Canvas

Key partners in business model canvas.

Key Partners is one of the building blocks of the Business Model Canvas and plays a crucial role in the success of a business. Once you understand your Value Chains, Key Resources , and Key Partners , it should be relatively easy to identify the key cost drivers and potential Opportunity Spaces for innovation. For any Business Model, managing costs is critical, but some Business Models are designed entirely around low-cost structures, such as “no-frills” airlines. What role do costs play in your Business Model? Are you seeking to simply optimize them, or could they play a more differentiating role?

Key Partners Examples

Apple company:.

• Type of Partnership: Buyer-Supplier Relationship
• Description: Apple relies on OEMs like Foxconn, which employs over 200,000 workers in Shenzen, China, to manufacture its products.
• Type of Partnership: Strategic Alliances
• Description: When Apple opened the iTunes Store, it formed strategic alliances with app developers and record companies to offer a wide range of apps and music to its customers.

Airbnb Company:

• Description: Airbnb collaborates with insurance providers, investors, and payment processors to ensure smooth transactions and provide insurance coverage for hosts and guests.
• Type of Partnership: Joint Ventures
• Description: Airbnb engaged in a joint venture with Tesla Motors to install charging stations at select hosts’ homes along the West Coast, promoting eco-friendly travel options for guests.
• Description: Airbnb forms strategic alliances with companies to sponsor events, expanding its brand visibility and attracting more potential hosts and guests.
• Type of Partnership: Not specified
• Description: Airbnb involved freelance photographers to improve the quality of property listings and increase hosts’ retention.

E-commerce Platform:

• Key Partners: Logistics Companies, Social Media Platforms, Payment Gateways
• Type of Partnership: Buyer-Supplier Relationship (with logistics and payment partners) and Strategic Alliances (with social media platforms)
• Description: An e-commerce platform collaborates with logistics companies and payment gateways to handle product delivery and transactions efficiently. Additionally, it forms strategic alliances with social media platforms to boost brand exposure and attract customers through advertising and promotions.

Ride-Sharing Service:

• Key Partners: Car Manufacturers for Fleet Partnerships, Mobile App Development Companies, Insurance Providers
• Type of Partnership: Buyer-Supplier Relationship (with car manufacturers and insurance providers) and Strategic Alliances (with app development companies)
• Description: A ride-sharing service forms fleet partnerships with car manufacturers to expand its vehicle fleet. It collaborates with mobile app development companies to enhance its app’s features and user experience. Additionally, it collaborates with insurance providers to offer insurance coverage for drivers and passengers.

Health-Tech Startup:

• Key Partners: Medical Equipment Suppliers, Healthcare Institutions for Research Collaborations, Mobile Health App Developers
• Type of Partnership: Buyer-Supplier Relationship (with medical equipment suppliers) and Strategic Alliances (with healthcare institutions and app developers)
• Description: A health-tech startup collaborates with medical equipment suppliers to source necessary devices for its healthcare solutions. It forms strategic alliances with healthcare institutions to conduct research and trials. Additionally, it partners with mobile health app developers to integrate health tracking features into its platform.

Key Partners’ main types

Key partnerships can be classified in four ways, with each arrangement having its own advantages and disadvantages.

Importantly, no matter the flavor of partnership, these agreements result in the creation of key partners for both business entities and therefore must be managed, cultivated, and regularly reviewed for their place in each company’s business model.

1. Strategic Alliances Partnerships:

• In strategic alliances, both companies agree to undertake a project that is mutually beneficial while remaining independent. This type of partnership is helpful in a competitive environment, as both companies share liability exposure. Examples include franchising, licensing, and affiliate marketing.

2. Coopetition Partnerships:

• Description: Coopetition partnerships involve rival companies forming a strategic partnership to achieve mutual benefits. This collaboration can lead to positive outcomes for both entities. An example is the cooperation between Pfizer and BioNTech to develop and distribute a COVID-19 vaccine.

3. Joint-Ventures Relationships:

• In joint ventures, two independent companies agree to work together on a specific project and share particular resources. This type of partnership is focused on a single joint project, distinguishing it from other partnerships. Joint ventures may cause conflicts between entities, and some experts advise caution with this type of key partnership.

4. Buyer-Supplier Relationships:

• Description: Buyer-supplier relationships involve commercial agreements for the purchase and supply of goods or services. These relationships are essential for businesses to deliver on their value proposition effectively. Buyers and suppliers are among the most critical key partners for a business. Maintaining productive buyer-supplier relationships is crucial for a company’s success, no matter which end of your company works is one of a business’s most important key activities.

Why do we Need Strategic Partnerships?

In a competitive environment characterized by the need for the reduction of risk and uncertainty, strategic partnerships offer the opportunity to build relationships and reduce costs. They reduce risk by diffusing exposure to changing business environments across the two companies.

Many times, strategic partnerships form a powerful building block of a business model by making key resources available at a manageable cost. Partners perform valuable services that would otherwise distract from our main value propositions.

The right partners perform important functions and help us complete our key activities and our customers’ Jobs to Be Done.

How do you Choose Your Key Partners?

Key partners are an important section of the business model canvas and business models as a whole. You should consider cultivating your key partnerships as one of your business’s key activities , which we’ve discussed elsewhere on the Digital Leadership website.

There can be no set rules for choosing your key partners. So much will depend on the specifics of your value proposition, their value proposition, and the overall business model of both companies. We thought about the factors behind successful key partnerships , however, and we think we’ve identified some common characteristics to keep in mind when choosing a key partner. Unlock the full potential of your business partnerships with The Unite Value Proposition Canvas Model, a comprehensive framework designed to help you identify and leverage successful key partnerships. By aligning your value proposition with that of your potential partners and understanding the overall business models of both companies, you can make informed decisions to create mutually beneficial relationships. You can download it now.

Examples and Types of Effective Functional Level Strategy for Business Support

A key objective of any business strategy is to improve operational efficiencies...

The Three Levels of Strategy: Corporate Strategy, Business Strategy, and Functional Strategy

Understanding the intricate levels of strategy is crucial for any organization aiming...

Register For Your FREE 
Innovation WorkShop Seat Now!

Learn how to overcome the 90% failure rate in innovation from a master innovator and best-selling author.

Expert tactics to boost your innovation odds.

Insights on capturing customer needs for innovation.

Tools that turn your ideas into triumphs.

First name *

Last name *

Professional E-mail *

I want to be kept up-to-date and accept the privacy statement *

By signing up, you agree to receive news and accept the privacy statement (mandatory)

Verify your e-mail address now by entering the 6-digit code we’ve just sent to your inbox

Don't receive Code? Resend code

Last one step

Help us better understand our innovation Show members

Country * Please Select Afghanistan Albania Algeria Andorra Angola Antigua and Barbuda Argentina Armenia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin (Dahomey) Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Brunswick and Lüneburg Bulgaria Burkina Faso (Upper Volta) Burundi Cabo Verde Cambodia Cameroon Canada Cayman Islands Central African Republic Central American Federation Chad Chile China Colombia Comoros Congo Free State Costa Rica Cote d’Ivoire (Ivory Coast) Croatia Cuba Cyprus Czechia Democratic Republic of the Congo Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Eswatini Ethiopia Fiji Finland France Gabon Gambia Georgia Germany Ghana Grand Duchy of Tuscany Greece Grenada Guatemala Guinea Guinea-Bissau Guyana Haiti Holy See Honduras Hungary Iceland India Indonesia Iran Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kiribati Korea Kosovo Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Mauritania Mauritius Mexico Micronesia Moldova Monaco Mongolia Montenegro Morocco Mozambique Namibia Nassau Nauru Nepal Netherlands New Zealand Nicaragua Niger Nigeria North Macedonia Norway Oman Pakistan Palau Panama Papal States Papua New Guinea Paraguay Peru Philippines Piedmont-Sardinia Poland Portugal Qatar Republic of Congo Republic of Korea (South Korea) Republic of the Congo Romania Russia Rwanda Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Samoa San Marino Sao Tome and Principe Saudi Arabia Schaumburg-Lippe Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Sudan Spain Sri Lanka Sudan Suriname Sweden Switzerland Syria Tajikistan Tanzania Thailand Timor-Leste Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Tuvalu Uganda Ukraine United Arab Emirates United Kingdom Uruguay Uzbekistan Vanuatu Venezuela Vietnam Württemberg Yemen Zambia Zimbabwe Industry * Please Select Automotive, mobilty & transport Financial Services Chemical & agriculture Construction & Real Estate Consulting Education Energy Banking, insurance & FS FMCG Food Gov / Public Industry Health & lifestyle Logistics, Aero & Shipping Media & Entertainment Natural resources & mining Pharma & Biotech Retail & trade Tech & E-Commerce Telco Tourism design Information technology & services Management consulting Retail Pharmaceuticals International trade & development Professional training & coaching luxury goods & jewelry Automotive Insurance Mechanical or industrial engineering Company Size * XS - 1-10 S - 10-100 M - 100-1000 L - 1000-5000 XL - > 5000

Seniority * Please Select Junior Consultant Senior Consultant Manager Senior Manager Director VP SVP Partner CXO Board Member

Areas of interest * Innovation Digital Transformation Culture & Organization IT Strategy & Bus. Alignment Customer Experience

Discover the largest library of innovation & transformation tools on the entire Internet!

LOG IN VIA E-MAIL

Forgot password?

New to Digital Leadership? Create your account

Thanks, We’ve Received Your Updated Details

Learn how to overcome the 90% failure rate in innovation from a master innovator & bestselling author!

Your e-mail address: * Your first name: *

One Last Step..

Help us better understand the UNITE community

Free guide to improve your innovation success rate*

Our 35-page comprehensive innovation guide covers the key areas why innovation fails. While it cannot cover all the solutions (that would take books to fill), it provides you with a convenient starting point for your analysis and provides further resources and links to the corresponding UNITE models, ultimately allowing you to work towards a doubling and tripling your chances of success.

Get access to the UNITE Models now!

Discover the largest library of innovation & transformation tools on the internet!

Choose Your Password *

Confirm Your Password *

Already have an account? Log in

Country * Please Select Afghanistan Albania Algeria Andorra Angola Antigua and Barbuda Argentina Armenia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin (Dahomey) Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Brunswick and Lüneburg Bhutan Bulgaria Burkina Faso (Upper Volta) Burundi Cabo Verde Cambodia Cameroon Canada Cayman Islands Central African Republic Central American Federation Chad Chile China Colombia Comoros Congo Free State Costa Rica Cote d’Ivoire (Ivory Coast) Croatia Cuba Cyprus Czechia Democratic Republic of the Congo Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Eswatini Ethiopia Fiji Finland France Gabon Gambia Georgia Germany Ghana Grand Duchy of Tuscany Greece Grenada Guatemala Guinea Guinea-Bissau Guyana Haiti Holy See Honduras Hungary Iceland India Indonesia Iran Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kiribati Korea Kosovo Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Mauritania Mauritius Mexico Micronesia Moldova Monaco Mongolia Montenegro Morocco Mozambique Myanmar Namibia Nassau Nauru Nepal Netherlands New Zealand Nicaragua Niger Nigeria North Macedonia Norway Oman Pakistan Palau Panama Papal States Papua New Guinea Paraguay Peru Philippines Piedmont-Sardinia Poland Portugal Qatar Republic of Congo Republic of Korea (South Korea) Republic of the Congo Romania Russia Rwanda Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Samoa San Marino Sao Tome and Principe Saudi Arabia Schaumburg-Lippe Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Sudan Spain Sri Lanka Sudan Suriname Sweden Switzerland State of Palestine Syria Tajikistan Tanzania Thailand Timor-Leste Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Tuvalu Uganda Ukraine United States United Arab Emirates United Kingdom Uruguay Uzbekistan Vanuatu Venezuela Vietnam Württemberg Yemen Zambia Zimbabwe Industry * Please Select Automotive, mobilty & transport Financial Services Chemical & agriculture Construction & Real Estate Consulting Education Energy Banking, insurance & FS FMCG Food Gov / Public Industry Health & lifestyle Logistics, Aero & Shipping Media & Entertainment Natural resources & mining Pharma & Biotech Retail & trade Tech & E-Commerce Telco Tourism design Information technology & services Management consulting Retail Pharmaceuticals International trade & development Professional training & coaching luxury goods & jewelry Automotive Insurance Mechanical or industrial engineering Company Size * XS - 1-10 S - 10-100 M - 100-1000 L - 1000-5000 XL - > 5000

Editable UNITE models (PowerPoint) included

Most of our models and canvases are designed to be applied! 


To help you personalize them to your exact business requirements, you can download fully editable versions of the UNITE models available (PowerPoint format)!

They are straightforward to work with, and you can directly incorporate them into your presentations as you need…thus saving countless hours of replication!

PS: did you know that you are also getting hi-res print-ready versions for your workshops?

Monthly live webinars

Each month we host our exclusive, invitation-only webinar series where one of our industry-leading experts updates our members on the latest news, progress and concepts around business strategy, innovation and digital transformation, as well as other related topics. 



You will receive the book in PDF and EPUB formats, ideal for your computer, Kindle, Tablet or other eReading device.

Bi-weekly live group Q&A sessions

These sessions are your opportunity to bring any questions or challenges you’re facing and receive expert guidance on the spot. 


Come and be a part of engaging discussions where your unique concerns are heard and addressed.

1x personal coaching session / month

If you are occasionally looking for a sparring partner or you need limited support, then this option will be ideal for you. Coaching sessions are 1-2 hours where we can discuss any challenge or opportunity you are currently facing.

If you need a few more hours outside of this provision, then these could be billed transparently.

Unlimited video call support! – it’s like always making the right decision!

We believe support shouldn’t be limited. Because we typically find that the occasional hour just doesn’t cut it – particularly if you and your team are in the midst of a large and complex project.

Your time with Stefan is therefore unlimited (fair usage applies) – in his function as coach and sparring partner. That does mean that you will still have to do the work – we cannot take that off you, unless you hire us as consultants. But you will get valuable strategic insight and direction to make sure you are always focusing your efforts where they will lead to the best results.

One personal coaching session / month 
+ unlimited support via e-mail & WhatsApp

We believe support shouldn’t be limited. If you generally know what you are doing but want a sparring partner to frequently raise questions to, this is the perfect choice!

In addition to your monthly 1-1 live coaching sessions with Stefan, you will also get unlimited support from him via email and WhatsApp messaging (fair usage applies). This not only allows you to get valuable strategic direction in your calls, but also gives you instant access to expert help as you work through your plans each month.



The fact that support is text-based means that we can speed up our responses to you while keeping the overall cost of support down.

Welcome gift of our book 
 “How to Create Innovation” 
 (digital + physical editions)*

As a welcome gift, you will receive the both the digital and physical version of our book “How to Create Innovation”, which covers numerous relevant resources and provides additional deep dives into our UNITE models and concepts.


The print version will be shipped out to you on sign-up. The digital version will be emailed to you, and comes in PDF and EPUB formats, ideal for your computer, Kindle, Tablet or other eReading device.

1x major workshop or 2x smaller workshops / month

1x major or 2x smaller workshops based on the UNITE models.

• Topics covered: almost any challenge under the header of #strategy, #innovation or #transformation, leveraging the UNITE models.
• Hands-On Learning: solve your challenges while learning the practical application of the UNITE models and walk away with concrete plans and tools to take your next steps.
• Industry thought leadership: facilitated by Stefan, the founder of Digital Leadership and the main author of the UNITE models, ensuring top-tier guidance and knowledge sharing.
• Collaborative approach: engage in interactive sessions that foster collaboration, idea exchange, and real-time problem-solving among peers and industry leaders.
• Continuous Improvement: Regular workshops ensure ongoing development in your organization staying ahead of industry trends and customer needs.

Access all of our UNITE models, 
 (incl. editable & print versions)

All of our Professional plans offer full access to the following:

• 6x UNITE model package downloads are included per month, if you need something in addition to these however, please let us know!
• Hi-res, print-ready versions you can use in your workshops
• Fully editable PowerPoint versions where applicable – personalize to your needs.
• Exclusive access to our vault of never-before-published strategic materials. We have much more to share – a lot of our concepts have never been published!

Exclusive access to our private UNITE community (upcoming)

We are currently in the process of launching our brand new community., we are designing our community to specifically help you:.

• Get answers to questions (“How do I …”)
• Share leading practices & knowledge
• Jointly develop new models
• Network amongst a highly qualified group of peers

Please, select the reason

Cancelling your plan will deactivate your plan after the current billing period ends. You will not be charged further, but also won’t be able to access [exclusive features/services].

• Cost-related issues
• Unsatisfied with the service
• Features I need are missing
• Switching to a different service
• Other (Please specify)

Book Your Initial Blueprint Session Now

Simply fill out the below form and book in a time for our initial session that works for you. This initial session is free, no strings attached, and is where we can discuss your Blueprint needs more in-depth before moving forward.

Stefan F. Dieffenbacher

Founder of digital leadership.

Adam D. Wisniewski

Partner for it strategy & business alignment.

Get in touch with Digital Leadership

Speak to our team today to find the best solution for your business to grow and scale.

We are here to support you across the entire lifecycle in all topics related to #digital, #innovation, #transformation and #marketing!

Stefan F. Dieffenbacher Founder of Digital Leadership

Contact Us!

Contact form, contact details, book a call.

Title, first name & last name * Email address * Phone number Please let us know how we can best support you! *

By clicking “Send”, I agree to Terms of Service and Privacy Policy.

Let’s have a conversation!

“Please be invited to reach out! We are happy to help and look forward to a first meeting!”

+41 (0) 44 562 42 24

[email protected]

Schedule Your Call With Our Team

Find a time on our calender that best suits you !

Founder and CEO of Digital Leadership

SCHEDULE YOUR INITIAL CALL

A Quick Survey!

What is the main challenge you're currently facing in your business?

You Want To Drive Change?

Let’s find the best solution for your business to grow and scale sustainably!

Let’s kick start it!

We will uncover your current business situation and goals and provide you with a bespoke solution that helps you drastically grow your business working with us.

Stefan F. Dieffenbacher, M.B.A.

Feedback about our consulting that we are proud of

Read the reviews and make sure that this is not a waste of time, but a super effective tool.

You want to drive change?

Schedule your free business assessment call with our founder.

On this call, we will uncover your current business situation and goals and talk about how to drive change and solve your need.

Choose the meeting type that applies to your needs and schedule a time to meet with someone from our team. We look forward to speaking with you soon!

Schedule Your Free Business Assessment

Schedule Your Free Business Assessment Call With Adam D. Wisniewski

Welcome to our scheduling page.

Let’s Design your Customer Experience Blueprint !

In a uniquely designed 60 or 90 minute session* , we will …

• > identify where to start with near-certainty
• > define what approach it takes to create success in your organization

Based on the Blueprinting session, you will receive a tailored blueprint that aligns with your objectives, vision and goals, ensuring that your initiative is a success from start to finish.

In this session, you will be working together with Patrick Zimmermann, Associate Partner for Customer Experience

Let’s Design your Culture & Org-Change Blueprint !

In this session, you will be working together with Dr. Andreas Rein, Partner at Digital Leadership for Culture & Org Change

Let’s Design your Innovation Blueprint !

In this session, you will be working together with Sascha Martini, Partner at Digital Leadership for Innovation and Digital Transformation

Let’s Design your Transformation Blueprint !

In this session, you will be working together with Stefan F. Dieffenbacher, Founder of Digital Leadership Stefan is a global thought leader in the innovation space

Let’s Design your IT Strategy & Business Alignment Blueprint !

In this session, you will be working together with Adam D. Wisniewski, Partner for IT Strategy & Business Alignment

Patrick Zimmermann

Sascha Martini

Dr. Andreas Rein

Write a personalized review! Log in

Create Review

Key Partnerships: Business Model Canvas Explained

The Business Model Canvas is a strategic management tool that allows businesses to visualize, design, and innovate their business models . One of the key components of this model is 'Key Partnerships', which refers to the network of suppliers and partners that make the business model work. This article will delve into the intricacies of Key Partnerships, exploring its importance, types, benefits, and how to identify and manage these partnerships effectively.

Key Partnerships are crucial for any business , regardless of its size or industry. They provide resources and activities that the company cannot provide on its own, thereby allowing the company to focus on its core competencies. In this context, partnerships can range from strategic alliances between non-competitors, joint ventures to develop new businesses, or buyer-supplier relationships to assure reliable supplies.

Understanding Key Partnerships

Key Partnerships in the Business Model Canvas refer to the relationships that your company has established with other businesses, government bodies, non-consumer entities, or even individuals, to create value for your customers. These partnerships are formed to optimize operations, reduce risks, or acquire resources.

Key Partnerships are not just about outsourcing or purchasing services. They are about leveraging the strengths of others to improve your business model. They can help a company extend its reach, improve its product or service, reduce costs, and mitigate risks.

Types of Key Partnerships

There are four main types of partnerships that a company can form: strategic alliances (with non-competitors), competition-based alliances (with competitors), joint ventures, and buyer-supplier relationships. Each type serves a different purpose and comes with its own set of advantages and challenges.

Strategic alliances with non-competitors allow companies to share resources and capabilities without directly competing with each other. Competition-based alliances, on the other hand, involve companies in the same industry working together to achieve a common goal. Joint ventures are formed when two or more companies decide to undertake a specific project or business activity together. Lastly, buyer-supplier relationships ensure a reliable supply of essential resources.

Importance of Key Partnerships

Key Partnerships are crucial for several reasons . They allow a company to focus on its core competencies while relying on partners for other resources or activities. This can lead to cost savings and increased efficiency. Partnerships also allow companies to access new markets, technologies, and expertise, fostering innovation and growth.

Furthermore, partnerships can help mitigate risks. By partnering with other companies, a business can share the risks associated with a particular project or activity. This can be particularly beneficial in uncertain or volatile markets.

Identifying Key Partnerships

Identifying potential partners is a crucial step in the process of forming Key Partnerships. This involves understanding your company's needs and goals, as well as the resources and capabilities of potential partners. It's important to consider both the short-term and long-term implications of a partnership.

Some questions to ask when identifying potential partners include: What resources or activities do we need that we cannot provide ourselves? What are our strategic goals, and how can a partner help us achieve them? What are the potential benefits and risks of partnering with this company?

Assessing Potential Partners

Once potential partners have been identified, the next step is to assess their suitability . This involves evaluating their resources, capabilities, reputation, and financial stability. It's also important to consider the potential partner's strategic goals and how they align with your own.

When assessing potential partners, it's important to conduct thorough due diligence. This includes reviewing financial statements, conducting interviews, and seeking advice from industry experts. It's also important to consider the potential partner's cultural fit, as this can significantly impact the success of the partnership.

Establishing and Managing Partnerships

Establishing and managing partnerships requires careful planning and ongoing management. This involves setting clear expectations, establishing communication channels , and regularly reviewing and adjusting the partnership as necessary.

It's important to establish a formal agreement that outlines the terms of the partnership, including the roles and responsibilities of each party, the allocation of resources, and the handling of any disputes. Regular communication is also crucial to ensure that the partnership is functioning effectively and that any issues are addressed promptly.

Benefits of Key Partnerships

Key Partnerships offer numerous benefits to businesses. They can provide access to new markets, technologies, and expertise , fostering innovation and growth. They can also lead to cost savings and increased efficiency by allowing companies to focus on their core competencies.

Furthermore, partnerships can help mitigate risks. By sharing the risks associated with a particular project or activity, companies can operate in uncertain or volatile markets with greater confidence. They can also increase their competitive advantage by leveraging the strengths of their partners.

Challenges of Key Partnerships

While partnerships offer numerous benefits, they also come with their own set of challenges. These can include differences in culture, goals, and management styles , which can lead to conflicts and misunderstandings. There's also the risk of becoming overly dependent on a partner, which can leave a company vulnerable if the partnership ends.

Despite these challenges, with careful planning and management, Key Partnerships can provide significant benefits to businesses. They can enhance a company's capabilities, extend its reach, and provide a competitive advantage in the marketplace.

In conclusion, Key Partnerships are a critical component of the Business Model Canvas. They provide companies with the resources and capabilities they need to create value for their customers. By forming strategic alliances, joint ventures, and buyer-supplier relationships, companies can enhance their business models, foster innovation, and achieve their strategic goals.

However, forming and managing partnerships requires careful planning and management. It's important to identify and assess potential partners carefully, establish clear expectations, and regularly review and adjust the partnership as necessary. With the right approach, Key Partnerships can provide significant benefits to businesses, including access to new markets, cost savings, and increased competitive advantage.

Whenever you are ready - here are a couple of ways how I can help you grow your business:

1. ​ Business Free Training Design Sprint ​ . Join Over 2,000 founders, creators and innovators in our FREE 7-day crash course on growth design. 7 emails delivered to your inbox giving you a flavour of the strategic planning, business growth systems and methods we use.

2. ​ Builder OS - Online Course - If you're looking to grow your business, I share expertise, methods and step-by-step blueprints on finding growth opportunities, building lean offers and acquiring customers.

3. Venture Builder Newsletter ​ - Sign up for the newsletter to receive 1 weekly email with practical tips on finding profitable niches, creating irresistible offers and traffic generating systems.out your business.

Helping designers and strategists turn their boldest ideas into market-leading ventures through Business, Design and Growth.

Whenever you are ready - here is how I can help:

1. ​ Newsletter ​ . Join over 2.000 founders, creators and innovators and get access to the business builder framework.

2. ​ Business Builder OS - Masterclass on finding growth opportunities, building lean offers and acquiring customers - driven by A.I.

3. Builder Toolkit - 30 ideas on how to grow your revenue.

Find, build and grow new ventures, better and faster.

©2024 Untaylored. All Rights Reserved.

Determine key business partners with 8 questions

The canvas business model was created by the Swiss Alexander Osterwalder to facilitate the strategic planning of new businesses in a fast, agile and integrated way , with the aid of canvas with 9 fields to fill.

Because they’re all nearby and being filled up in a short space of time and a group, the goal is for each response to be viewed broadly, making it easier to perceive the interpolations between each field.

Thus, the result is much more complete and meets the complexities inherent in planning business.

The 9 fields that must be filled in are the following:

• Key partners
• Key activities
• Value offering
• Key features
• Customer relationship
• Customer segments

In this post, we are going to understand better how to answer the 8 questions regarding the definition of the key partners in a business model canvas.

See also: Lean Business Model Canvas: For Every Type of Organization

8 questions to define the key partners in a business model canvas

A business needs to develop partnerships so that it can function properly.

Whether it’s suppliers, non-profits, unions, associations and even clients, you need to understand how these partnerships will help your business succeed.

See the following 8 questions and explanations on how to answer them:

1- Who are our key partners?

Who are the entities or people who will contribute to the success of your business, but who are neither employees nor suppliers?

For example: large universities often develop research in partnership with industries, which store these surveys to be able to use them in business.

2- Who are our key suppliers?

There are suppliers that can be easily replaced, usually those that produce commodities. But other extremely specialized features and services that your business needs come from key suppliers.

You have to find out who they are to strengthen the relationship.

For example: among the key suppliers of a jewelry store are the big producers of hard to find and replace gemstones.

3- What key resources do we get from partners?

In the first example we gave, this is clear: universities get capital to invest in research, And companies get the information and insights from the academic research they need.

4- What key activities do the partners carry out?

Again, our initial example helps to understand this: the high-quality professional service provided by universities, their professors, and students, is the activity that companies receive.

In the case of jewelry, the extraction, selection, and stoning of the gems are the activity the partner performs.

5 – What can motivate these partnerships?

Now the question is more strategic. See that partnership, in the case of universities, is a mutual process of collaboration , in which both key partners in a business model have a benefit, there is a reciprocity that motivates this partnership.

But, in the case of the supply of precious stones, this doesn’t occur, the relationship is merely commercial. Is it possible to find a way to strengthen this partnership?

If the jewelry store created a jewelry line with the name of one of the mines where they extract the stones, would this create a common brand between the two companies?

The next 3 questions go in this direction. Now that we know who the partners are and what they provide, how can we improve this relationship?

Have a look:

6- How do you achieve optimization and savings with key partners?

Creating a unique partnership with a smaller precious stones supplier, ensuring the purchase of all your production, with special prices for the jewelry, and determining quality standards that correspond exactly to what the jeweler needs, can be a beneficial idea for both key partners in a business model.

7- How do you reduce risks and uncertainties?

The previous example also goes down this path, especially for the stone supplier.

8- How do you access certain resources and activities?

Imagine that the university needs a certain expensive device to analyze certain materials and conduct their research.

It will need to find the right company, which has enough resources to purchase the equipment and maintain it. This company should also have an interest in this field of research.

See more: How to Organize a Small Business Using the Canvas Model

So, after defining the key partners in a business model, and responding to the other 8 fields in this table, model your processes with HEFLO , an intuitive, free for process modeling and cloud-based BPMN tool .

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Post Comment

• Business Management
• Process Automation
• Process Documentation
• Process Improvement
• Process Mapping
• Process Modeling
• Process Optimization

Business Model Canvas: Explained with Examples

Got a new business idea, but don’t know how to put it to work? Want to improve your existing business model? Overwhelmed by writing your business plan? There is a one-page technique that can provide you the solution you are looking for, and that’s the business model canvas.

In this guide, you’ll have the Business Model Canvas explained, along with steps on how to create one. All business model canvas examples in the post can be edited online.

What is a Business Model Canvas

A business model is simply a plan describing how a business intends to make money. It explains who your customer base is and how you deliver value to them and the related details of financing. And the business model canvas lets you define these different components on a single page.   

The Business Model Canvas is a strategic management tool that lets you visualize and assess your business idea or concept. It’s a one-page document containing nine boxes that represent different fundamental elements of a business.  

The business model canvas beats the traditional business plan that spans across several pages, by offering a much easier way to understand the different core elements of a business.

The right side of the canvas focuses on the customer or the market (external factors that are not under your control) while the left side of the canvas focuses on the business (internal factors that are mostly under your control). In the middle, you get the value propositions that represent the exchange of value between your business and your customers.

The business model canvas was originally developed by Alex Osterwalder and Yves Pigneur and introduced in their book ‘ Business Model Generation ’ as a visual framework for planning, developing and testing the business model(s) of an organization.

What Are the Benefits of Using a Business Model Canvas

Why do you need a business model canvas? The answer is simple. The business model canvas offers several benefits for businesses and entrepreneurs. It is a valuable tool and provides a visual and structured approach to designing, analyzing, optimizing, and communicating your business model.

• The business model canvas provides a comprehensive overview of a business model’s essential aspects. The BMC provides a quick outline of the business model and is devoid of unnecessary details compared to the traditional business plan.
• The comprehensive overview also ensures that the team considers all required components of their business model and can identify gaps or areas for improvement.
• The BMC allows the team to have a holistic and shared understanding of the business model while enabling them to align and collaborate effectively.
• The visual nature of the business model canvas makes it easier to refer to and understand by anyone. The business model canvas combines all vital business model elements in a single, easy-to-understand canvas.
• The BMC can be considered a strategic analysis tool as it enables you to examine a business model’s strengths, weaknesses, opportunities, and challenges.
• It’s easier to edit and can be easily shared with employees and stakeholders.
• The BMC is a flexible and adaptable tool that can be updated and revised as the business evolves. Keep your business agile and responsive to market changes and customer needs.
• The business model canvas can be used by large corporations and startups with just a few employees.
• The business model canvas effectively facilitates discussions among team members, investors, partners, customers, and other stakeholders. It clarifies how different aspects of the business are related and ensures a shared understanding of the business model.
• You can use a BMC template to facilitate discussions and guide brainstorming brainstorming sessions to generate insights and ideas to refine the business model and make strategic decisions.
• The BMC is action-oriented, encouraging businesses to identify activities and initiatives to improve their business model to drive business growth.
• A business model canvas provides a structured approach for businesses to explore possibilities and experiment with new ideas. This encourages creativity and innovation, which in turn encourages team members to think outside the box.

How to Make a Business Model Canvas

Here’s a step-by-step guide on how to create a business canvas model.

Step 1: Gather your team and the required material Bring a team or a group of people from your company together to collaborate. It is better to bring in a diverse group to cover all aspects.

While you can create a business model canvas with whiteboards, sticky notes, and markers, using an online platform like Creately will ensure that your work can be accessed from anywhere, anytime. Create a workspace in Creately and provide editing/reviewing permission to start.

Step 2: Set the context Clearly define the purpose and the scope of what you want to map out and visualize in the business model canvas. Narrow down the business or idea you want to analyze with the team and its context.

Step 3: Draw the canvas Divide the workspace into nine equal sections to represent the nine building blocks of the business model canvas.

Step 4: Identify the key building blocks Label each section as customer segment, value proposition, channels, customer relationships, revenue streams, key resources, key activities, and cost structure.

Step 5: Fill in the canvas Work with your team to fill in each section of the canvas with relevant information. You can use data, keywords, diagrams, and more to represent ideas and concepts.

Step 6: Analyze and iterate Once your team has filled in the business model canvas, analyze the relationships to identify strengths, weaknesses, opportunities, and challenges. Discuss improvements and make adjustments as necessary.

Step 7: Finalize Finalize and use the model as a visual reference to communicate and align your business model with stakeholders. You can also use the model to make informed and strategic decisions and guide your business.

What are the Key Building Blocks of the Business Model Canvas?

There are nine building blocks in the business model canvas and they are:

Customer Segments

Customer relationships, revenue streams, key activities, key resources, key partners, cost structure.

• Value Proposition

When filling out a Business Model Canvas, you will brainstorm and conduct research on each of these elements. The data you collect can be placed in each relevant section of the canvas. So have a business model canvas ready when you start the exercise.  

Let’s look into what the 9 components of the BMC are in more detail.

These are the groups of people or companies that you are trying to target and sell your product or service to.

Segmenting your customers based on similarities such as geographical area, gender, age, behaviors, interests, etc. gives you the opportunity to better serve their needs, specifically by customizing the solution you are providing them.

After a thorough analysis of your customer segments, you can determine who you should serve and ignore. Then create customer personas for each of the selected customer segments.

There are different customer segments a business model can target and they are;

• Mass market: A business model that focuses on mass markets doesn’t group its customers into segments. Instead, it focuses on the general population or a large group of people with similar needs. For example, a product like a phone.  
• Niche market: Here the focus is centered on a specific group of people with unique needs and traits. Here the value propositions, distribution channels, and customer relationships should be customized to meet their specific requirements. An example would be buyers of sports shoes.
• Segmented: Based on slightly different needs, there could be different groups within the main customer segment. Accordingly, you can create different value propositions, distribution channels, etc. to meet the different needs of these segments.
• Diversified: A diversified market segment includes customers with very different needs.
• Multi-sided markets: this includes interdependent customer segments. For example, a credit card company caters to both their credit card holders as well as merchants who accept those cards.

Use STP Model templates for segmenting your market and developing ideal marketing campaigns

Visualize, assess, and update your business model. Collaborate on brainstorming with your team on your next business model innovation.

In this section, you need to establish the type of relationship you will have with each of your customer segments or how you will interact with them throughout their journey with your company.

There are several types of customer relationships

• Personal assistance: you interact with the customer in person or by email, through phone call or other means.
• Dedicated personal assistance: you assign a dedicated customer representative to an individual customer.  
• Self-service: here you maintain no relationship with the customer, but provides what the customer needs to help themselves.
• Automated services: this includes automated processes or machinery that helps customers perform services themselves.
• Communities: these include online communities where customers can help each other solve their own problems with regard to the product or service.
• Co-creation: here the company allows the customer to get involved in the designing or development of the product. For example, YouTube has given its users the opportunity to create content for its audience.

You can understand the kind of relationship your customer has with your company through a customer journey map . It will help you identify the different stages your customers go through when interacting with your company. And it will help you make sense of how to acquire, retain and grow your customers.

This block is to describe how your company will communicate with and reach out to your customers. Channels are the touchpoints that let your customers connect with your company.

Channels play a role in raising awareness of your product or service among customers and delivering your value propositions to them. Channels can also be used to allow customers the avenue to buy products or services and offer post-purchase support.

There are two types of channels

• Owned channels: company website, social media sites, in-house sales, etc.
• Partner channels: partner-owned websites, wholesale distribution, retail, etc.

Revenues streams are the sources from which a company generates money by selling their product or service to the customers. And in this block, you should describe how you will earn revenue from your value propositions.  

A revenue stream can belong to one of the following revenue models,

• Transaction-based revenue: made from customers who make a one-time payment
• Recurring revenue: made from ongoing payments for continuing services or post-sale services

There are several ways you can generate revenue from

• Asset sales: by selling the rights of ownership for a product to a buyer
• Usage fee: by charging the customer for the use of its product or service
• Subscription fee: by charging the customer for using its product regularly and consistently
• Lending/ leasing/ renting: the customer pays to get exclusive rights to use an asset for a fixed period of time
• Licensing: customer pays to get permission to use the company’s intellectual property
• Brokerage fees: revenue generated by acting as an intermediary between two or more parties
• Advertising: by charging the customer to advertise a product, service or brand using company platforms

What are the activities/ tasks that need to be completed to fulfill your business purpose? In this section, you should list down all the key activities you need to do to make your business model work.

These key activities should focus on fulfilling its value proposition, reaching customer segments and maintaining customer relationships, and generating revenue.

There are 3 categories of key activities;

• Production: designing, manufacturing and delivering a product in significant quantities and/ or of superior quality.
• Problem-solving: finding new solutions to individual problems faced by customers.
• Platform/ network: Creating and maintaining platforms. For example, Microsoft provides a reliable operating system to support third-party software products.

This is where you list down which key resources or the main inputs you need to carry out your key activities in order to create your value proposition.

There are several types of key resources and they are

• Human (employees)
• Financial (cash, lines of credit, etc.)
• Intellectual (brand, patents, IP, copyright)
• Physical (equipment, inventory, buildings)

Key partners are the external companies or suppliers that will help you carry out your key activities. These partnerships are forged in oder to reduce risks and acquire resources.

Types of partnerships are

• Strategic alliance: partnership between non-competitors
• Coopetition: strategic partnership between partners
• Joint ventures: partners developing a new business
• Buyer-supplier relationships: ensure reliable supplies

In this block, you identify all the costs associated with operating your business model.

You’ll need to focus on evaluating the cost of creating and delivering your value propositions, creating revenue streams, and maintaining customer relationships. And this will be easier to do so once you have defined your key resources, activities, and partners.  

Businesses can either be cost-driven (focuses on minimizing costs whenever possible) and value-driven (focuses on providing maximum value to the customer).

Value Propositions

This is the building block that is at the heart of the business model canvas. And it represents your unique solution (product or service) for a problem faced by a customer segment, or that creates value for the customer segment.

A value proposition should be unique or should be different from that of your competitors. If you are offering a new product, it should be innovative and disruptive. And if you are offering a product that already exists in the market, it should stand out with new features and attributes.

Value propositions can be either quantitative (price and speed of service) or qualitative (customer experience or design).

What to Avoid When Creating a Business Model Canvas

One thing to remember when creating a business model canvas is that it is a concise and focused document. It is designed to capture key elements of a business model and, as such, should not include detailed information. Some of the items to avoid include,

• Detailed financial projections such as revenue forecasts, cost breakdowns, and financial ratios. Revenue streams and cost structure should be represented at a high level, providing an overview rather than detailed projections.
• Detailed operational processes such as standard operating procedures of a business. The BMC focuses on the strategic and conceptual aspects.
• Comprehensive marketing or sales strategies. The business model canvas does not provide space for comprehensive marketing or sales strategies. These should be included in marketing or sales plans, which allow you to expand into more details.
• Legal or regulatory details such as intellectual property, licensing agreements, or compliance requirements. As these require more detailed and specialized attention, they are better suited to be addressed in separate legal or regulatory documents.
• Long-term strategic goals or vision statements. While the canvas helps to align the business model with the overall strategy, it should focus on the immediate and tangible aspects.
• Irrelevant or unnecessary information that does not directly relate to the business model. Including extra or unnecessary information can clutter the BMC and make it less effective in communicating the core elements.

What Are Your Thoughts on the Business Model Canvas?

Once you have completed your business model canvas, you can share it with your organization and stakeholders and get their feedback as well. The business model canvas is a living document, therefore after completing it you need to revisit and ensure that it is relevant, updated and accurate.

What best practices do you follow when creating a business model canvas? Do share your tips with us in the comments section below.

Join over thousands of organizations that use Creately to brainstorm, plan, analyze, and execute their projects successfully.

FAQs About the Business Model Canvas

How do i determine my value proposition, how can i build and maintain customer relationships, what should i consider when establishing partnerships in the business model canvas, how can the business model canvas help to analyze and optimize my business model, can i use the business model canvas for different types of businesses, how often should the business canvas model be updated or revised, how can i effectively communicate my business model to stakeholders using the business canvas model.

• Use clear and concise language
• Use visual-aids
• Customize for your audience
• Highlight key insights
• Be open to feedback and discussion

More Related Articles

Amanda Athuraliya is the communication specialist/content writer at Creately, online diagramming and collaboration tool. She is an avid reader, a budding writer and a passionate researcher who loves to write about all kinds of topics.

Profitable Business Models > Business Model Canvas

The Business Model Canvas Explained: Key Partners

• by  Joanne Moyo
• January 20, 2022

No man is an island; the same goes for your business. They are other companies, 3rd parties, and people that you will need to achieve your value proposition and your key activities .

It’s impossible for you to internally source everything you need for your business.

So a crucial question to ask here is ‘who can I rely on if my business cannot achieve the value proposition alone?’ An example of this is if you run a local grocery store, you may need a local baker to supply fresh bread to your store.

Key partnerships can either be in the form of an open relationship where both partners retain their independence and are free to form more partnerships. Or it can be an exclusive contract that limits the two companies to only that one relationship.

So in this segment, it’s essential to list the activities , resources , and channels you need to outsource to deliver your value proposition to your customer segments . This will give you an indication of the partners you’ll need to make your business model work.

Let’s look at Spotify . Spotify’s key activity and value proposition are giving users access to music. However, the company doesn’t produce its own music, so key partners for Spotify would be record labels and artists who own the rights to the music.

Why are Key Partners Important? 

Healthy partnerships are crucial in making a business successful. Still, they can be tricky and involve a lot of negotiation and an element of trust. There are several reasons why a company might opt for a partnership. It’s important to mention that your business can form several partnerships for various reasons. Still, not all will be key to your business.

Partnerships are essential for the following reasons:

• Optimization and economy of scale

Partnerships enable your business to optimize its resource utilization. Some organizations go into alliances to increase their bottom line. In contrast, others are motivated by the cost-cutting benefits of partnering.

It’s unrealistic to think that your business will have all the resources in place to conduct all your key activities in-house. Partnerships will give you the ability to share infrastructures or outsource some activities to more cost-effective options.

Tesla , for instance, signed a production contract in 2005 with Lotus to produce complete car shells. This partnership was crucial for developing Tesla’s first car, the Roadster. The company had tried and failed to secure suppliers of materials such as airbags, door handles and latches, seatbelts, and other components that made up the shell of a sports car.

Tesla didn’t have enough money, so securing these suppliers was a challenge. Additionally, most suppliers saw their idea as too risky and likely to fail, so they were not keen on partnering with Tesla. Thankfully, Lotus, a UK-based car manufacturer, had a good relationship with some suppliers and managed to secure these essential components on behalf of Tesla Motors.

Just keep in mind that partnerships can change throughout your business’ lifecycle. The types of partnerships that may be key during your first year may not be the ones you’ll need once your business is established.

• Reduction of risk and uncertainty

A good partnership may help you reduce the inherent risk of doing your own business. For example, you can guarantee the supply of some critical resources to your business rather than depending on suppliers who aren’t key partners. Usually, the latter suppliers may not give precedence to your business because there is no exclusive partnership agreement.

Some competitors may form strategic partnerships to share the risk of bringing something new into the market while still competing in various aspects of the industry. A great example of this is the development of blu-ray technology. This was a collaboration by some of the world’s biggest consumer electronics and computer technology firms, including Panasonic, Pioneer, Philips, Thomson, LG Electronics, and Hitachi Sharp, Samsung Electronics, and Sony.

Developing this technology was costly, and these competitors had to work together to make blu-ray technology more mainstream.

•  Acquisition of activities and new resources

Sometimes having a key partner will help you attain new resources or conduct key activities that are hard to source in-house. This might be due to the resources or activity requiring a heavy investment of time, money, or both. Negotiating a partnership with a company that already possesses the things you lack can come in handy.

For example, in 1984, Toyota and General Motors entered into a joint venture called the New United Motor Manufacturing, Inc. The purpose of the partnership was to re-launch the General Motor plant in Fremont, California, and strengthen Toyota’s position. Under the joint venture, the plant would manufacture cars for both brands.

The partnership also benefited General Motors, struggling to sell high-quality and fuel-efficient small cars. They could now access the Toyota Production System and penetrate the small car market.

Additionally, the factory would give Toyota a manufacturing base in North America, thereby avoiding the tariffs on imported vehicles. Moreover, General Motors would prove valuable in navigating the American labor environment, particularly relations with the United Auto Workers union.

Types of Partnerships

Partnerships come in different forms. They can be strategic alliances, joint ventures, or buyer-seller. Your partnership could have to do with anything necessary for your business to run, such as capital, manufacturing, service, or supplies.

• Strategic alliances: These types of partnerships are between non-competitors. For example, Uber’s partnership with Spotify allows Uber riders to easily stream their Spotify playlists whenever they take a ride. This makes the Uber experience feel more personalized and encourages Uber riders to subscribe to Spotify Premium to get more control.
• Co-opetition: This type of partnership helps to spread the risk between both parties. It may also assist when both partners are trying to introduce something new. For instance, Amazon (Kindle) and Apple (iPad) established an agreement in 2007 to allow the distribution of Amazon e-books through an iPad – Kindle App.
• Joint-Ventures: Joint Ventures help both partners who might have a mutual interest in developing new business. Think back to our Toyota and General Motors example. 
• Buyer-Supplier Relationships: These are the most popular type of partnerships and ensure that your business has a reliable source of supplies. This means they have a reliable buyer for their product for the supplier.

How to Create Good Key Partnerships

There are several factors you should keep in mind when forming partnerships:

• Right Partnership Agreements: Regardless of who you partner with, all relevant parties must have clear partnership agreements drafted along with legal counsel.
• Defining Expectations: To avoid future conflict, it’s best to establish expectations from the onset.
• Impact on your customer segment : When forming a partnership, it is crucial to consider your value proposition and key resources . Partners may fill up a gap for every BMC segment, with the most important being possible access to new clients. For example, Netflix partnered with Apple by launching an app on Apple’s iPad. This gave the access to new customers and also helped with the user experience. 
• Win-Win situation: Healthy and sustainable partnerships need to have visible gains on both ends.

Lastly, some partnerships may seem beneficial on paper but fail to get off the ground practically. Additionally, changes in the business model may also make some business partnerships irrelevant.

When analyzing the various key partnerships that your business requires, it is imperative to evaluate the nature of the alliance based on the following key questions;

• Which partnerships are critical to our business?
• Who can you trust to help you achieve the value proposition?
• What can’t you offer that a partner can?
• What type of partnerships would suit our needs?
• Who has easy access to your customer segment ?
• Who could decrease your effort in building customer relationships ?
• What key resources are in hands of other companies that are not your direct competition?
• What partnerships could lower your in-house costs?
• What activities are not crucial to your business model and could be outsourced to third parties?
• Are there already existing channels that you could use in exchange of your resources or effort?

It all boils down to identifying what is in your capabilities and what isn’t. There’s nothing wrong with outsourcing some of your channels , activities , or resources , as long as you don’t put at too much risk your business model if the partnership breaks.

Most Popular

Netflix’s Business Model Canvas Evolution (2021)

McDonald’s: Business Model Canvas, its evolution and company’s history

18 Must-Read Business Books

Check how Amazon’s main focus allowed the company to thrive. Amazon’s Business Model Canvas and how it changed from the very beginning.

• Business books reviews (27)
• Business Ideas (8)
• Business Model Canvas (9)
• Business models of large companies (26)

Business Tools

Download Free Business Model Canvas Template in Word / docx / PDF / SVG format

Inspire yourself with Business Ideas Generator

Get INSPIRING stories and TIPS on making your business model PROFITABLE!

• Recently trending business ideas
• Inspiring business models
• Examples of profitable businesses from all over the world

2 Responses

Greetings! Very helpful advice in this particular post! It is the little changes that make the most significant changes. Thanks for sharing!

Hello there! I could have sworn I’ve been to this site before but after browsing through a few of the posts I realized it’s new to me. Regardless, I’m definitely pleased I discovered it and I’ll be book-marking it and checking back often!

Related Posts

Twitter: Becoming The World’s Fastest Information Hub

Today, Twitter is one of the most recognizable and influential social media platforms on the planet. As of February 2022, Twitter is valued at $27.48

The Business Model Canvas Explained: Cost Structure

The last (but not least) segment on the Business Model Canvas is the cost structures. In this segment, you must ask yourself, how much will

No man is an island; the same goes for your business. They are other companies, 3rd parties, and people that you will need to achieve

The Business Model Canvas Explained: Key Resources

On the Business Model Canvas, the Key Resources segment refers to the supplies, assets, and materials required to deliver your value proposition to your customer

Privacy Overview

The Leading Source of Insights On Business Model Strategy & Tech Business Models

Key Partners Business Model Canvas

A key partner can simply be defined as any entity a business needs to rely on to achieve its value proposition . In the Business Model Canvas , the Key Partners section lists external companies, suppliers, or parties an organization does business with to perform key activities and deliver customer value .

Table of Contents

Understanding key partners in the Business Model Canvas 

If a corner store sells fresh bread but does not possess the ability to make it, the bakery down the street is one of its key partners.

A relationship between two or more key partners can be classified as:

Strategic alliances

Where two non-competitors come to a mutually beneficial arrangement.

Joint-ventures

Where key partners have a mutual interest in developing new business in an emerging market or geographical area. Here, each partner must contribute to business inputs.

Co-opetition

A strategic partnership designed to minimize risk, which may be associated with bringing a new product to market or accessing raw materials, among other initiatives.

Both parties work toward a common goal.

Buyer-supplier

Most key partners engage in buyer-supplier relationships, where one business exchanges money with another for products or services.

Why do key partnerships exist?

In truth, partnerships between companies exist for many reasons. We’ve outlined a few of them below:

Optimization and economies of scale

In the majority of cases, a partnership with another company is a financial decision designed to reduce costs.

These arrangements occur via the optimization of resources or activities, the outsourcing of certain processes, or the sharing of infrastructure.

Risk and uncertainty reduction

Amicable partnerships are inherently less risky since each entity tends to prioritize the needs of its partners over non-affiliated businesses.

Some organizations also work together to share the risk of bringing a new product to market.

When Blu-ray technology was first developed, rival consumer electronics and computing companies pooled their financial and knowledge-based resources to collaborate for mutual benefit.

Resource and activities acquisition

If a business requires something that would otherwise involve a significant investment, it can partner with entities that have the necessary technology, processes, or infrastructure already in place.

Dutch beer company Heineken partners with new bars by meeting their equipment and décor costs. In return, the bar becomes an exclusive seller of Heineken beer.

Developing sustainable and mutually beneficial key partnerships

In addition to providing financial benefits, key partners need to enter into arrangements that are sustainable for both parties over the long term.

Here is how this might be achieved:

Clarify expectations

Before a partnership is agreed upon, the organizations involved should voice and address any major concerns. This helps avoid potentially costly conflicts in the future.

Customer impact

A key partner helps the organization fill a critical gap in its value proposition .

However, the partnership should always be evaluated in terms of how it will be construed by various customer segments.

Lego and Shell had a strong partnership for over 50 years, but this came to an end when consumers questioned why an oil company with questionable practices was involved with children’s toys.

Selecting and suspending partnerships

Some arrangements start well but end up being to the detriment of both partners.

To that end, each organization must develop the ability to exit any partnership it deems untenable. 

Correct and sustainable partnership agreements

The terms of any agreement need to be clear, concise and benefit both parties.

These agreements can be facilitated by the presence of legal representation.

• Apple and Foxconn : Apple relies on Foxconn, a Taiwanese multinational, as a key partner for manufacturing its iPhones, iPads, and other products. This strategic alliance ensures Apple’s products are produced at scale and meet quality standards.
• Starbucks and Nestlé : Starbucks partnered with Nestlé to distribute its coffee products globally. Nestlé handles the production and distribution of Starbucks-branded coffee products for consumers to enjoy at home.
• Uber and Spotify : Uber offers passengers the ability to control the in-car music experience through a partnership with Spotify. Passengers can link their Spotify accounts and play their favorite music during rides.
• Netflix and Content Providers : Netflix forms key partnerships with various content providers, including studios, production companies, and streaming platforms, to secure the rights to movies and TV shows for its streaming service.
• Amazon Web Services (AWS) : AWS is a key partner for many startups and businesses, providing cloud computing and storage solutions. Companies like Airbnb and Netflix rely on AWS to scale their services.
• Coca-Cola and McDonald’s : McDonald’s serves Coca-Cola products exclusively in its restaurants, making Coca-Cola a key partner for McDonald’s beverage offerings.
• Tesla and Panasonic : Tesla collaborates with Panasonic to manufacture lithium-ion batteries for its electric vehicles. This partnership ensures a consistent supply of batteries for Tesla ’s cars.
• Google and Mozilla Firefox : Google pays Mozilla to be the default search engine in the Firefox web browser. This partnership generates significant revenue for Mozilla.
• Pharmaceutical Companies and Research Institutions : Pharmaceutical companies often partner with research institutions and universities to develop new drugs and treatments. These collaborations leverage scientific expertise.
• Automakers and Technology Companies : Traditional automakers like Ford and General Motors partner with technology companies such as Microsoft and Google to integrate advanced infotainment systems and autonomous driving technologies into their vehicles.
• Airline Alliances : Airlines form alliances, like the Star Alliance and SkyTeam, to expand their route networks, share resources, and offer passengers a wider range of travel options.
• Retailers and Payment Processors : Retailers partner with payment processors like Visa, Mastercard, or PayPal to facilitate secure and convenient transactions for customers.
• Sports Teams and Sponsors : Sports teams enter into sponsorship agreements with companies that promote their brand through advertising and support the team financially. For example, Nike sponsors many professional sports teams.
• Mobile Phone Manufacturers and App Developers : Smartphone manufacturers like Apple and Google partner with app developers to offer a wide range of apps on their platforms, enhancing the user experience.
• Environmental Organizations and Corporations : Environmental groups collaborate with corporations on sustainability initiatives and eco-friendly product development. For instance, WWF collaborates with companies on conservation projects.

Key takeaways:

• In the Business Model Canvas, the Key Partners section lists external companies, suppliers, or parties an organization does business with to perform key activities and deliver customer value .
• Companies enter into key partnerships for many reasons. These include optimization, economies of scale, risk and uncertainty reduction, and resource or activities acquisition.
• For each key partner to benefit from a partnership, they should clarify expectations and define agreements in the presence of legal counsel. They must also evaluate the customer impact of such a partnership and terminate any partnership they consider detrimental to success.

Key Highlights of Key Partnerships in Business Models:

• Definition of Key Partners : Key partners are external entities that a business collaborates with to carry out essential activities and deliver value to customers. In the Business Model Canvas, this section outlines these crucial relationships.
• Examples of Key Partnerships : Consider a corner store that sells fresh bread but doesn’t have the capability to bake it. In this case, the nearby bakery becomes a key partner, supplying the store with fresh bread.
• Strategic Alliances : Non-competing companies enter into mutually beneficial agreements to achieve common goals.
• Joint Ventures : Key partners with shared interests collaborate to develop new businesses, often in emerging markets, with each partner contributing resources.
• Co-opetition : Strategic partnerships aimed at risk reduction, particularly when introducing new products or accessing resources, where both parties work together toward a common objective.
• Buyer-Supplier Relationships : Most key partnerships involve buyer-supplier relationships, where one party exchanges money for products or services from the other.
• Optimization and Economies of Scale : Partnerships often aim to reduce costs through resource optimization, outsourcing, or infrastructure sharing.
• Risk and Uncertainty Reduction : Partnerships lower inherent risks, as partners prioritize each other’s needs and share risks, as seen in the collaboration on Blu-ray technology.
• Resource and Activities Acquisition : Businesses partner with entities that already possess necessary technology, processes, or infrastructure to avoid substantial investments. For example, Heineken partners with bars, covering equipment and décor costs in exchange for exclusivity.
• Clarify Expectations : Before formalizing partnerships, organizations should openly discuss concerns to prevent potential conflicts in the future.
• Customer Impact : Evaluate partnerships from the perspective of various customer segments to ensure they align with the company’s values and goals. Lego and Shell’s partnership ended due to customer concerns.
• Selecting and Suspending Partnerships : Some partnerships may start well but become detrimental to both parties. Organizations should have the ability to exit such partnerships.
• Correct and Sustainable Agreements : Partnership agreements should be transparent, mutually beneficial, and legally sound. Legal representation can facilitate these agreements.
• In the Business Model Canvas, Key Partners identify external entities crucial for performing key activities and delivering customer value .
• Companies enter into key partnerships for reasons such as optimization, cost reduction, risk mitigation, and resource acquisition.
• Sustainable key partnerships require clear expectations, customer impact assessment, the flexibility to terminate unviable partnerships, and well-defined, mutually beneficial agreements.

Alternatives to the Business Model Canvas

Fourweekmba squared triangle business model.

This framework has been thought for any type of business model , be it digital or not. It’s a framework to start mind mapping the key components of your business or how it might look as it grows. Here, as usual, what matters is not the framework itself (let’s prevent to fall trap of the Maslow’s Hammer ), what matters is to have a framework that enables you to hold the key components of your business in your mind, and execute fast to prevent running the business on too many untested assumptions, especially about what customers really want. Any framework that helps us test fast, it’s welcomed in our business strategy .

FourWeekMBA VTDF Framework For Tech Business Models

This framework is well suited for all these cases where technology plays a key role in enhancing the value proposition for the users and customers. In short, when the company you’re building, analyzing, or looking at is a tech or platform business model , the template below is perfect for the job.

Download The VTDF Framework Template Here

FourWeekMBA VBDE Framework For Blockchain Business Models

This framework is well suited to analyze and understand blockchain-based business models. Here, the underlying blockchain protocol , and the token economics behind it play a key role in aligning incentives and also in creating disincentives for the community of developers, individual contributors, entrepreneurs, and investors that enable the whole business model . The blockchain-based model is similar to a platform-based business model , but with an important twist, decentralization should be the key element enabling both decision-making and how incentives are distributed across the network.

Download The VBDE Framework Template Here

Key Highlights

• Key Partners: In the Business Model Canvas, key partners refer to external companies, suppliers, or parties that a business relies on to deliver its value proposition and perform key activities.
• Types of Relationships: Key partnerships can take the form of strategic alliances, joint ventures, co-opetition, buyer-supplier relationships, and more.
• Reasons for Key Partnerships: Companies enter into key partnerships to optimize costs, reduce risk and uncertainty, acquire resources or activities, and improve their value proposition .
• Developing Sustainable Partnerships: To ensure sustainable partnerships, organizations should clarify expectations, consider customer impact, select and suspend partnerships as needed, and create clear and mutually beneficial partnership agreements.
• Alternatives to the Business Model Canvas: There are other frameworks available, such as the FourWeekMBA Squared Triangle Business Model and the FourWeekMBA VTDF Framework for Tech Business Models, which can help businesses analyze and develop their business models effectively.

Main Free Guides:

• Business Models
• Business Strategy
• Business Development
• Digital Business Models
• Distribution Channels
• Marketing Strategy
• Platform Business Models
• Revenue Models
• Tech Business Models
• Blockchain Business Models Framework

FourWeekMBA Business Toolbox

Business Engineering

Tech Business Model Template

Web3 Business Model Template

Asymmetric Business Models

Business Competition

Technological Modeling

Transitional Business Models

Minimum Viable Audience

Business Scaling

Market Expansion Theory

Speed-Reversibility

Asymmetric Betting

Growth Matrix

Revenue Streams Matrix

Revenue Modeling

Pricing Strategies

• Business Strategy Examples
• What Is a Value Proposition?
• Business Model Innovation

More Resources

About The Author

Gennaro Cuofano

Discover more from fourweekmba.

Subscribe now to keep reading and get access to the full archive.

Type your email…

Continue reading

Description

What are the Key Partners in a Business Model Canvas(BMC)?

In a business model canvas (bmc), key partners refer to the strategic alliances or relationships that a business forms in order to create and deliver value to its customers., explanation of key partners in a business model canvas.

Key Partners in a Business Model Canvas (BMC) are external entities that collaborate with a business to help it thrive. These partners can be individuals, organizations, suppliers, or other businesses that contribute key resources, expertise, or capabilities to enhance the value proposition and operations of the business. The selection of key partners is crucial as they play a vital role in the success of a business model.

• Key Partners are essential for businesses to leverage external resources and expertise.
• They help businesses access new markets, technologies, and distribution channels.
• Key Partners can help reduce costs, improve efficiency, and mitigate risks for a business.
• Examples of Key Partners include suppliers, strategic alliances, joint ventures, and outsourcing companies.

More backgrounds

Learn about the advantages of implementing the Business Model Canvas in your company to enhance strategic planning and improve business outcomes.

This article explores the integration of Lean Startup principles with the Business Model Canvas, providing a comprehensive understanding of how these two methodologies can work together to optimize bu...

This article explores the differences between the Business Model Canvas and traditional business plans. It provides an overview of each approach, discussing their values and how they work. The article...

This article provides a concise definition and detailed explanation of the Business Model Canvas (BMC). It explores the values of using the BMC, describes how it works, and offers relevant background ...

The Key Resources in a Business Model Canvas (BMC) refer to the essential assets and capabilities that a business needs to operate and deliver value to its customers.

Learn how to effectively use a SWOT analysis and a Business Model Canvas to analyze and strategize your business.

The Business Model Canvas (BMC) and a traditional business plan serve different purposes. While a business plan outlines the overall strategy and detailed aspects of a business, the BMC focuses on visualization and summarizing key components of business operations...

This article provides a comprehensive explanation of the Business Model Canvas, including its definition, values, and how it works. It also includes detailed background information to help beginners understand.

Try yourself

Cookies & Privacy

This website uses cookies to ensure you get the best experience on our website.

What is the Business Model Canvas?

Download the free business model canvas template, history of the business model canvas, structure of the business model canvas template, example of a business model canvas, additional resources, business model canvas template.

The executive summary of a business

The business model canvas is a strategic planning  tool used by managers to illustrate and develop their business model. The business model canvas template clearly identifies the key elements that make up a business. Additionally, it simplifies a business plan into a condensed form. In this way, the business model canvas template acts like an executive summary for the business plan.

Corporate Finance Institute®’s Corporate & Business Strategy Course has more tools that you can use to manage and improve your business!

Enter your name and email in the form below and download the free template now!

The business model canvas template was originally introduced by Alexander Osterwalder in his 2004 thesis, “The Business Model Ontology – A Proposition in a Design Science Approach”. Since then, the business model canvas template has been taught at business schools and iterated upon to fit more niche businesses.

There are nine main building blocks in the business model canvas template:

• Key Partners
• Key Activities
• Key Resources
• Value Propositions
• Customer Relationships
• Customer Segments
• Cost Structure
• Revenue Streams

The following is a breakdown of each of these nine elements. These elements all link and work with each other to ensure the success of the business.

#1. Key Partners

Key partners are the companies or people your business works with to create a strategic relationship. A few examples of key partners are suppliers or distribution partners in the supply chain .

Here are a few things to consider about key partners:

• What key resources does your company receive from these partners?
• What key activities are performed by these partners?
• What is your company’s motivation for working with these key partners? Is there something specific that only they can provide? Do they help lower costs?

#2. Key Activities

Key activities are specific activities or tasks that are fundamental to the operation of your business. An example of a key activity would be the procurement of fresh produce in bulk for a restaurant.

Here are a few things to consider about key activities:

• What key activities are necessary to deliver your value proposition ?
• What activities set your company apart from others?
• How do your revenue streams , distribution channels , and customer relationships differ from competitors? How do your key activities affect these?
• Do you need to procure specific niche resources?
• Do you need to streamline to keep costs and prices low?

#3. Key Resources

Key resources are the assets necessary to operate and deliver your value proposition. For example, a diamond mining company cannot operate without mining equipment . Alternatively, an automotive company cannot operate without the human capital and expertise that goes into designing cars.

Here are a few things to consider about key resources:

• What specific assets are necessary to operate your business and deliver your value proposition ?
• What resources do your distribution channels and revenue streams need to function?
• What resources are needed to maintain customer relationships and customer satisfaction ?
• Does your company require significant capital or human resources?

#4. Value Propositions

Value propositions are arguably the most important element of the business model canvas template. The value proposition determines the fundamental offering the company is trying to give its customers. It is the primary driver of business operations. For example, Spotify’s value proposition,  “Music for everyone.” , eloquently states its mission and offering. Spotify wants to be a music streaming platform that has music selections for everyone.

Here are a few things to consider about value propositions:

• What exactly is your company trying to give to customers?
• What problem is your company trying to solve and what needs are your company satisfying?
• How do you offer something different that satisfies the demands of your  customer segments (e.g. price, quality, design, status, etc.)?

#5. Customer Relationships

Customer relationships are the different types of interactions a company has with its customers. For example, a designer suit company will provide significant help for the customer, tailoring to their needs and working directly with them to create the suit they want. Conversely, telecommunications companies often have poor reputations and customer relationships as many practice aggressive and predatory sales practices through their call centers. Compared to telecommunications companies, the designer suit company has significantly richer and more fulfilling customer relationships.

Here are a few things to consider about customer relationships:

• What type of relationship does your company have with its customers? For example, do you provide dedicated assistance or are they expected to self-serve their needs through provided support channels?
• How does the business interact with customers and how does this differ between customer segments ?
• Does your company frequently communicate with customers?
• How much support is provided by your company?

#6. Channels

Channels are the different structures and methods that are used to deliver your company’s product and value proposition to its customers. Channels encompass all of a company’s supply, distribution, and marketing channels. It is important to consider all channels of a company and make sure they are functioning cohesively. For example, a company like Amazon needs to consider how its fulfillment centers and shipping services are integrated to send out timely shipments.

Here are a few things to consider about channels:

• How do you deliver your  value proposition ?
• How do you reach your  customer segments ? What channels are used?
• Are your supply, distribution, marketing, and communication channels well-integrated and cost-efficient? Are they being utilized effectively?

#7. Customer Segments

Customer Segments are the different types of customers that a company manages. A company that produces different products will need to interact with different types of customers.

An example of this would be airline companies. Airlines offer tickets for economy, business, and first-class customers. First-class passengers have access to exclusive benefits and luxury travel arrangements. Conversely, economy passengers are provided much less support, thus costing less, but also coming in significantly larger amounts.

Here are a few things to consider about customer segments:

• Who is the main focus of your value proposition? Who are you creating value for?
• Who are your most important customers? What are they like? What do they need? What do they enjoy?
• What are your different types of customers ?
• What is the customer market like? Is your company targeting a small niche community or a mass market?

#8. Cost Structure

The cost structure refers to how a company spends money on operations. It consists of the company’s key costs and the company’s level of focus on costs. If a company is cost-driven, it focuses on minimizing costs and, thus, prices for customers. Alternatively, if a company is value-driven, it focuses on creating value for its customers, with less focus on cost.

An example of this would be a comparison between fashion retailers, Forever 21 and Gucci. Forever 21 is a fast-fashion company focused on delivering the newest styles at low costs – a cost-driven company. Alternatively, Gucci is a luxury brand focused on delivering high-quality clothes and accessories designed with the latest trends in the fashion industry – a value-driven company.

Here are a few things to consider about cost structure:

• What are the key costs in your company’s business model
• What are the major drivers of cost ?
• How do your  key activities and  key resources  contribute to the cost structure?
• How do your costs relate to your  revenue streams?
• Is your company properly utilizing economies of scale ?
• What proportion of costs are fixed and variable ?
• Is your company focused on cost-optimization or value?

Check out CFI’s course on Budgeting and Forecasting to learn more about estimating future cash flows, revenues, and expenses!

#9. Revenue Streams

Revenue streams are a company’s source of cash flows . They are the final element of the business model canvas template. Revenue streams are the different ways your company’s value proposition generates money. A company might have multiple revenue streams. For example, Apple has multiple revenue streams between its variety of products and its services, such as Apple Music.

Here are a few things to consider about revenue streams:

• Does your company have multiple methods of generating revenue ?
• What is the pricing strategy for the products offered by your company?
• Through what  channels do your customers pay?
• Does your company offer multiple forms of payment (up-front, payment plans, financing, etc.)?

Here is a simple example built for an automotive company using our business model canvas template!

Proper financial management is the backbone of any business. Corporate Finance Institute has resources that will help you expand your knowledge, advance your career, and manage the financials of your company! Check out the helpful CFI resources below:

Financial Modeling & Valuation Analyst (FMVA)® Certification Program

Corporate & Business Strategy

Budgeting and Forecasting

Three Financial Statements Summary

See all management & strategy resources

• Share this article

Create a free account to unlock this Template

Access and download collection of free Templates to help power your productivity and performance.

Already have an account? Log in

Supercharge your skills with Premium Templates

Take your learning and productivity to the next level with our Premium Templates.

Upgrading to a paid membership gives you access to our extensive collection of plug-and-play Templates designed to power your performance—as well as CFI's full course catalog and accredited Certification Programs.

Already have a Self-Study or Full-Immersion membership? Log in

Access Exclusive Templates

Gain unlimited access to more than 250 productivity Templates, CFI's full course catalog and accredited Certification Programs, hundreds of resources, expert reviews and support, the chance to work with real-world finance and research tools, and more.

Already have a Full-Immersion membership? Log in

9 | Key Partners

Key Partners  highlighted on the canvas

What network of suppliers and partners make your business model work?  

The commercial dimension.

Companies forge partnerships for many reasons, and partnerships are becoming a cornerstone of many business models.  Companies create alliances to optimize their business models (e.g., reduce costs), reduce risk (e.g., jointly develop a technology),or acquire resources (e.g., license IP).  We can distinguish between four different types of partnerships: strategic alliances between non-competitors, strategic alliances between competitors (coopetition), joint ventures to develop new businesses, and buyer-supplier relationships to assure reliable supplies.

The Impact Dimension

Partnerships can support and enhance both the commercial and the impact objectives of a social enterprise.  There may be different motivations for engaging in partnerships according to whether the partnership is centered on commerce, impact, or both.  Potential motivations for impact partnerships in a social enterprise include: scaling/maximizing impact, ensuring and measuring delivery of impact, and optimising economies of scale and scope in relation to impact.

For-Profit Example

Key partners:

• Suppliers [c]

d.light sells solar energy solutions to populations without electricity in 60+ nations.  See project description and its Impact BMC

Nonprofit Example

Equal opportunity schools.

• District and state superintendents [b]
• College Board [c]
• International Baccalaureate [c]
• My Brother’s Keeper, U.S. Department of Education [i]
• Jack Kent Cooke Foundation [i]
• Google.org [i]
• Tableau Foundation [i]

Equal Opportunity Schools helps minority and low-income high school students succeed in AP and IB courses.  See project description and its Impact BMC

• Deutschland
• Español EE.UU
• Magyarország
• Cryptocurrency with Business2Community
• Best Crypto to Invest in
• How to Buy Bitcoin – Beginner’s Guide
• 12 Best Altcoins to Invest in 2023 – Which New Altcoins to Buy? Crypto
• Business News

Key Partners and Your Business Model

Alejandro is a seasoned financial analyst and adept business expert with over seven years of…

Steve has built and sold several successful multi-million dollar business.  Since 2002 he has mentored…

Key partners are the secret sauce to skyrocketing your business success, but who are they and why do they matter so much?

In this no-fluff guide, we’ll dive into the who, what, and how of nailing the perfect partnerships.

Get ready to learn how to identify key partners that’ll transform your game!

What are Key Partners?

In entrepreneurship, your key partners are the relationships that you build and maintain with other businesses to ensure your business model will be successful.

The most obvious key partnerships are related to your supply chain, but it’s important to remember that most companies can be considered as supply partners , and often are only a small link in a much larger value chain.

We often think of our customers as end-users of our products and services, but in reality, our customers are most often simply the next link in the chain.

To our customers, we are their key partners – meaning without the products or services rendered, they could not produce their output.

Let’s consider buying a new car – there are literally thousands of key partnership relationships that made the car happen.

If you are the car manufacturer, your key partners are the companies that make the tires, rims, and brakes – or even components that come together to build these parts.

Moreover, if you are the tire company, you have key partnerships with rubber suppliers and the steel company that supplies you with the steel cords used to manufacture tires.

Each link in the supply chain has key partners that help the company do what it does, and each link in the supply chain is on the active lookout for new partnerships .

How to Identify Key Partners for Your Business: Types of Partnerships

Key partners are not restricted to just supply chain partners, in fact across a broad spectrum most key partnerships can fall into one of four wider categories:

1. Strategic Alliances between Non-Competitors

As the name implies, this is a strategic partnership between non-competitors.

For example, your business may choose to partner with a manufacturing company to produce a sub-assembly – indeed, the tire company and the car manufacturer are not competitors.

While the car company could choose to be vertically integrated and manufacture its own tires, it is far more efficient to contract with a tire manufacturer to source its tires.

Another great non-competitor strategic alliance was when Edger Thompson, president of the Pennsylvania Railroad, partnered with Andrew Carnegie of Carnegie Steel to create its railroad tracks.

2. Coopetition

This is the strategic partnership between direct competitors.

For example, consider the energy sector – it is not very efficient for every oil and gas company to try to sway public opinion about fracking.

Instead, many oil and gas producers pooled their money to create a series of public service announcements (PSA) to debunk many of the claims that fracking technology is bad for the environment and is responsible for polluting water supplies.

While the oil and gas companies are in direct competition with each other, that does not mean that they may not have a key partnership with other oil and gas companies to cooperate on some things.

3. Joint Ventures to Develop New Businesses

This is where two companies combine their technology to create a new business.

For example, Google had a robust internet delivery mechanism, while NASA had a defense mapping database with images of the planet – through a joint venture, they created Google Earth.

In another instance, there has been extensive collaboration between Virgin’s Galaxy Space programme and manufacturers of satellites, by providing a solution to the launch needs of satellite operators – they have been able to tap into an extensive source of funding for research and development.

4. Buyer-supplier Relationships

Last but not least is the buyer-supplier relationship.

Key partners in a buyer-supplier relationship can build mutually beneficial and reliable relationships with Porter’s five forces .

There is a bit of a distinction that can be made between a simple supplier and a true partner:

A “ supplier ” is a company that you choose to provide a needed product or service and is more of a commodity-based provider. Communications with suppliers are primarily one way and can be easily replaced with another supplier if needed.

A “ partner ” can be a key upstream supplier or downstream customer that has a greater interest in your success. Partners are more engaged in your process and help you provide a better product or service.

Unpacking Key Partnerships: Motivations for Building Partnerships

While the above framework illuminates the plethora of different partnership arrangements a business might engage in, it fails to adequately explain the rationale and motivations that underpin these partnership decisions.

To explore this further, here are three common reasons that motivate building partnerships with other businesses:

1. Optimize expenses

For the small business owner, your key partners are often chosen to optimize expensive capital resources through their economies of scale – enabling you to reduce costs.

For instance, imagine the case of a residential home builder, they’re better served by outsourcing the work of digging the building’s foundation to a dirt-work contractor.

This is because owning their own excavator is not as efficient, based on a lower duty cycle of the asset.

2. Mitigate risk

Other times, key partners are chosen to mitigate risk and uncertainty by transferring it to a partner who is in a better position to handle them.

Such was the case with banks that sold their mortgages to Fannie Mae and Freddie Mac, which then sorted them by risk and sold them as mortgage-backed securities.

3. Unique Resources

Finally, key partners may be chosen based on their unique set of resources or activities – or competitive advantage in the production of such resources or activies.

Take for example when Dodge embarked on a process of building partnerships with diesel manufacturers, finally culminating in production manufacture of Ram’s first diesel trucks with the Cummins engine.

10 Key Partners Examples to Consider

Key partners can vary greatly depending on the nature of the business or project.

Here are a few examples:

• Suppliers and Vendors : For a manufacturing company, key partners might include raw material suppliers and parts vendors. For instance, a smartphone manufacturer relies on suppliers for components like chips, screens, and batteries.
• Distribution Partners : For a company that produces goods, distribution partners such as logistics companies, wholesalers, or retail chains can be key. For example, a small organic food producer might partner with local supermarket chains to distribute its products.
• Technology Partners : For a tech company, this could include software developers, cloud service providers, or hardware manufacturers. A startup developing a new app might partner with cloud computing services like AWS or Azure for their infrastructure needs.
• Strategic Business Alliances : Companies often form strategic alliances with other businesses to expand their market reach or complement their offerings. For instance, an automobile manufacturer might partner with a tech company to develop advanced navigation systems for its vehicles.
• Research and Development Partners : In industries like pharmaceuticals or biotechnology, partnerships with research institutions or universities are vital for innovation. A biotech firm might collaborate with a university lab for cutting-edge research in gene therapy.
• Marketing Partners : For many businesses, marketing agencies or consultants play a key role in developing and executing marketing strategies. A fashion brand might partner with a well-known advertising agency to enhance its brand presence.
• Financial Partners : Banks, venture capitalists, or angel investors are key for businesses needing financial support. A startup might have a venture capital firm as a key partner, providing not just funding but also business expertise and networking opportunities.
• Government and Regulatory Bodies : In certain industries, partnerships with government entities or adherence to regulatory standards are crucial. A renewable energy company, for example, might work closely with government agencies for compliance and to benefit from green energy incentives.
• NGOs and Community Organizations : For businesses focused on social impact or sustainability, partnerships with NGOs or community groups can be key. A company focusing on sustainable agriculture might partner with NGOs that work in environmental conservation.
• Franchise Partners : In a franchise business model, the franchisees are key partners. For example, in the fast-food industry, individual franchise owners operate their outlets but adhere to the company’s standards and practices.

Understanding and nurturing these partnerships is often a critical aspect of a business’s strategy and operational success.

Conclusions and Key Takeaways

Overall, in this deep-dive there has been a comprehensive explanation of the four types of partnerships available to your business and we have explored the various pull-factor motivations that form the basis for these partnerships in the commercial world.

When it comes to analysing the key partners for your business, or even building partnerships for your business, it is imperative to ask yourself the following questions for success:

• Who are your key partners and who are your suppliers?
• Which key resources are you acquiring from key partners and suppliers?
• What key activities do your key partners and suppliers perform?
• Do you know who your key partners are?

References:

Business2Community – 10 Ways to Accessorize Your Brand!

Business2Community – Key Activities and Your Business Model

Business2Community – Partnerships in Digital Business: Finding Your Perfect Match

Federal Housing Finance Agency – Fannie Mae and Freddie Mac

Motor Trend – Cummins Engines

Proactive Investor – Virgin Galaxy Space Partnerships

SteveBiz – Lessons from the Steel Baron

SteveBiz – Porter’s Five Forces

Tech Terms – End Users

Steve has built and sold several successful multi-million dollar business.  Since 2002 he has mentored and counseled thousands of clients on their entrepreneurial journey.  Steve has authored 10 books related to entrepreneurship and is the content creator for his blog site. 

Stay Informed, Sign Up for Our Exclusive Newsletter!

Trending news, say goodbye to temu and shein’s low prices as us set to kill tax loophole, is agi already here asi claims its ai is “self-aware”, firefox’s ppa mode isn’t as private as it seems: slammed with massive lawsuit, 3 youngsters stole $243 million in bitcoin: here’s how they did it, did apple deploy misleading marketing for iphone 16, latest news.

Several companies are working to develop Artificial General Intelligence (AGI),…

New California Law Combats “Disappearing” Digital Purchases: Here’s How

California just passed a new law that combats an unethical…

The Biden administration wants to eliminate a loophole in tax…

OpenAI Set to Pivot to “Maximum Profit” Firm & Give Sam Altman 7% Equity

Analysts explain what the 50 bp rate cut means for crypto, kansas city teachers union opposes sports betting amendment for better salaries, doj goes against visa in latest chapter of biden’s antitrust crusade.

WashU Libraries

• Business Model Canvas
• Value proposition
• Customer relationships
• Customer segment
• Customer channels
• Viability in the BMC
• Key activities and resources

Key partners

• Best Bet Entrepreneurial Books

Key partners are the external relationships engaged to create customer value.  They can take a number of forms such as supplier or broker relationships, joint ventures, franchises or strategic alliances.  

The scholarly business literature addresses the optimal conditions and challenges presented by these different forms of partnerships.

Directories are tools that can be used to identify potential partners.  Often trade associations or trade show exhibit halls offer supplier and service directories that can be used to find key partners.  If word of mouth is used to identify partners, do due diligence on them by checking credit ratings and mentions in the news.

Full text articles from scholarly business journals and other sources, including financial data, books, monographs, major reference works, conference proceedings, case studies, investment research reports, industry reports, market research reports, country reports, company profiles, SWOT analyses and more. Updated daily. Learn more about this database

Created by the Center for International Business Education and Research at Michigan State University, MSU-CIBER GlobalEDGE™ is a knowledge web-portal that connects international business professionals worldwide to a wealth of information on global business activities. The site offers country insights, industry profiles, a blog, resources for teachers, diagnostic tools, and more.

This site contains in-depth company information including profiles, financials, officers, products, competitors and more. The database features the ability to build company and contact lists, browse news, research industries, and obtain market research and analyst reports. NOTE: Limited to Business School students/faculty/staff on proxy. Available to all students on-site at Kopolow Business Library.

Up-to-date news, business, and legal information.  

The world’s largest abstract and citation database of peer-reviewed literature. Contains over 46 million records, 70% with abstracts, and also includes over 4.6 million conference papers. NOTE: Click "Institutions" icon in right corner. Change organization to Washington University in St Louis John M Olin Library, Danforth Campus.

Science, social science, arts, and humanities citations for scholarly literature.

• << Previous: Key activities and resources
• Next: Best Bet Entrepreneurial Books >>
• Last Updated: Sep 17, 2024 9:04 AM
• URL: https://libguides.wustl.edu/BusinessModelCanvas

• Crafting an Effective Partner Business Plan: Essential Elements for Success

Share this article

Print/Download PDF

By  Harrison Barnes

Rate this article

929 Reviews Average: 5 out of 5

Discuss Partners on Top Law Schools

• ideas on how to network with judge's son who is partner?
• Networking/taking a partner at a firm out to lunch?
• NYC Study Partners- for those truly motivated
• 165+/Retake Study Partner?
• Arizona Study Partner

Partner Business Plans: Key Elements

• The Crucial Role of Business Plans in Law Firm Partner Success
• Maximize Portables in Your Business Plan in Order to Maximize Interest in You

The Importance of a Great Business Plan

Professional Goals For Partner Status

Making an evaluation of your existing practice, describing your vision as a partner, creating a strategy for growth.

• A partner's fit culturally
• The viability of a partner's practice for the long-term
• A partner's record of excellent client service to long-term clients and producing business
• A partner's history of consistently increasing collections
• A partner's practice fit in connection with the firm's strategic plan for expansion
• Whether a partner's practice area is one that is targeted for growth
• Whether the partner brings portable business and/or specific expertise needed in a particular practice area
• The opportunities the partner would bring for business development and significant cross-selling were the partner to join the firm
• Whether the partner's historical information is reflective of consistent productivity
• Whether the partner's client base fits within the firm's client structure
• Any potential conflicts that would preclude the firm from hiring the partner
• A partner's current compensation and compensation expectation
• A partner's potential contribution to the firm's bottom line/profitability
• A partner's fit within the firm's current attorney roster
• A partner's reason for leaving his or her current firm (voluntary/mutual arrangement) and whether the partner would be a problem
• Creative: Serve as a marketing piece on the partner and enable the firm to assess the partner's business potential. It should also provide an outlet to the partner to step out of the resume format and chart his or her previous performance and future prospects for business in a creative format.  
• Illustrative: Illustrate to a firm that the partner is thinking about his or her practice as a business and set forth his or her plan for the future.  
• Persuasive: Persuade the firm to hire the partner.  
• Historical: Chart a historical record of the partner's history of creating business opportunities and his or her ability to develop and foster client relationships over an extended period of time.  
• Demonstrative: Demonstrate a partner's business-development skills, initiative, and ability to contribute not only to his or her own success but also to the success of his or her colleagues through cross-selling efforts. It should also demonstrate ways a partner can contribute to a firm's financial bottom line, enhance its practice-group development, and ultimately bring added value to the team.  
• Prophetic: Prophesy what the partner believes he or she will be able to accomplish in his or her practice and for the firm in the short and long term.  
• Preparatory: Prepare the partner for the interviewing process.

Introduction

• Provide a narrative including professional history, practice overview, and a description of areas of expertise. This section may highlight briefly particular areas of expertise that the firm does not currently have.
• Describe the partner's role historically as a business developer.
• Briefly touch upon why the partner believes he or she would be a good fit for a particular firm.

Market Research/Analysis

• Give analysis of local need for services in partner's practice area.
• Describe local competition/other law firms with similar practices.
• Give overview of need in local market for partners with his or her expertise.
• Describe why partner believes firm provides the best platform in the marketplace for his or her particular practice area.

Current Client Base

• Describe current portable clients (use generic or specific).
• Describe key industries serviced.
• Discuss other partners' clients partner is servicing.

Additional Contacts to Develop

• Discuss contacts not yet tapped.
• Given market analysis, project possible targets in local, regional, national, or international markets.
• Discuss possible expansion of business from current client base.

Cross-Selling Opportunities

• Describe cross-selling opportunities with current clients.
• Describe cross-selling opportunities with known key clients of prospective firm.
• Discuss other practice areas at current firm to which partner is delegating work.
• Discuss services your clients are requesting that you cannot currently service at your firm and could otherwise capture at the new firm .

Other Business-Development Sources

• Describe additional business contacts you are pursuing or plan to pursue
• Speeches, publications
• Community organizations
• Bar associations
• Internal marketing initiatives
• Client seminars/newsletters

Long-Term Strategy Goals and Targets

• Set targets for expansion of practice in terms of collections, attorneys, and clients/industries.
• Consider possibility of local to regional to national growth patterns.
• Consider growth in other key competencies which may be affected by partner's long-term success.
• Discuss long-term strategies in connection with firm's overall strategic plan and practice-group development plans.

Historical Collections, Billing Rates, and Billable Hours

• If a partner with a lower billing rate structure, chart the anticipated rate increases by portable client or anticipated timeline for rate increases to current clients. Discuss any alternative billing arrangements you currently have in place with clients.
• Include three-year client collections history by client (as originating attorney and as billing attorney on other attorneys' matters). Include projection for current fiscal year.
• Include three-year billing rate history.
• Include three-year historical compensation history (including bonus information).
• Include three-year billable hour history.
• Note pending projects contributing to future collections.
• Include a summary of anticipated collection projections for the next three to five years.
• Business-development budget
• Time commitments from partners in other practice areas for cross-selling purposes
• Key staff needed (secretary, paralegals, etc.)
• Foreign-language skill requirements
• Travel expenses
• Marketing materials, presentations, etc.

Creative Conclusion

• Recap key points in plan, added value partner brings, and reasons he or she would be a good fit.
• Emphasize flexibility of plan and eagerness and willingness to discuss and modify in accordance with firm's plans and objectives.
• See 30 Ways to Generate Business as an Attorney for more information.

Want to continue reading?

Become a free bcg attorney search subscriber..

Once you become a subscriber you will have unlimited access to all of BCG’s articles.

There is absolutely no cost!

Harrison Barnes does a weekly free webinar with live Q&A for attorneys and law students each Wednesday at 10:00 am PST. You can attend anonymously and ask questions about your career, this article, or any other legal career-related topics. You can sign up for the weekly webinar here: Register on Zoom

Harrison also does a weekly free webinar with live Q&A for law firms, companies, and others who hire attorneys each Wednesday at 10:00 am PST. You can sign up for the weekly webinar here: Register on Zoom

You can browse a list of past webinars here: Webinar Replays

You can also listen to Harrison Barnes Podcasts here: Attorney Career Advice Podcasts

You can also read Harrison Barnes' articles and books here: Harrison's Perspectives

Harrison Barnes is the legal profession's mentor and may be the only person in your legal career who will tell you why you are not reaching your full potential and what you really need to do to grow as an attorney--regardless of how much it hurts. If you prefer truth to stagnation, growth to comfort, and actionable ideas instead of fluffy concepts, you and Harrison will get along just fine. If, however, you want to stay where you are, talk about your past successes, and feel comfortable, Harrison is not for you.

Truly great mentors are like parents, doctors, therapists, spiritual figures, and others because in order to help you they need to expose you to pain and expose your weaknesses. But suppose you act on the advice and pain created by a mentor. In that case, you will become better: a better attorney, better employees, a better boss, know where you are going, and appreciate where you have been--you will hopefully also become a happier and better person. As you learn from Harrison, he hopes he will become your mentor.

To read more career and life advice articles visit Harrison's personal blog.

Article Categories

• Legal Recruiter ➝
• Attorney Career Advice ➝
• Advice for Partners ➝
• Business Plans

Do you want a better legal career?

Hi, I'm Harrison Barnes. I'm serious about improving Lawyers' legal careers. My only question is, will it be yours?

About Harrison Barnes

Harrison is the founder of BCG Attorney Search and several companies in the legal employment space that collectively gets thousands of attorneys jobs each year. Harrison is widely considered the most successful recruiter in the United States and personally places multiple attorneys most weeks. His articles on legal search and placement are read by attorneys, law students and others millions of times per year.

Find Similar Articles:

• strategic Partnerships
• risk Analysis
• regulatory Compliance
• professional Development
• Partner Business Plans
• legal Advice
• law Firm Planning
• governance Strategies
• goal Setting
• financial Management
• crisis Management
• corporate Structure
• contract Negotiation
• conflict Resolution
• business Law

Active Interview Jobs

Featured jobs.

Location: California - Santa Ana

Location: California - Los Angeles

Location: Pennsylvania - Johnstown

Most Viewed Jobs

Location: New York - New York City

Location: Pennsylvania - Blue Bell

Upload Your Resume

Upload your resume to receive matching jobs at top law firms in your inbox.

Additional Resources

• Harrison's Perspectives
• Specific Practice Areas
• The Winning Mindset

BCG Reviews

The good thing about working with BCG in general is all of the resources and articles. The job search showed that the fi.... Read more >

Sergio Marin

University of Connecticut School of Law, Class Of 2018

I don't have experience working with any other search firms, but my legal placement professional was just really availab.... Read more >

Nicholas Contento

University of Notre Dame, Class Of 2017

My recruiter in New York has been great in facilitating my job search process and already identified several potential o.... Read more >

Stephen Cheng

I loved attention that I received from BCG. I really felt valuable and that they were working really hard for me trying .... Read more >

David Hawkins

New York Law School, Class Of 2021

One of my favorite things about working with BCG was the personalized attention. It may sound cliche, but I have worked .... Read more >

Joshua Anderson

Loyola Law School, Class Of 2011

My favorite thing was working with my legal placement professional at BCG. She was very responsive with questions that I.... Read more >

Christopher C.

UC Berkeley School of Law, Class Of 2013

Popular Articles by Harrison Barnes

• What is Bar Reciprocity and Which States Allow You to Waive Into the Bar?
• What Do Law Firm Titles Mean: Of Counsel, Non-Equity Partner, Equity Partner Explained
• Top 6 Things Attorneys and Law Students Need to Remove from Their Resumes ASAP
• Why Going In-house Is Often the Worst Decision a Good Attorney Can Ever Make
• Top 9 Ways For Any Attorney To Generate a Huge Book of Business

Helpful Links

• The BCG Attorney Search Guide to Basic Law Firm Economics and the Billable Hour: What Every Attorney Needs to Understand to Get Ahead
• Quick Reference Guide to Practice Areas
• Refer BCG Attorney Search to a Friend
• BCG Attorney Search Core Values
• Recent BCG Attorney Search Placements
• What Makes a World Class Legal Recruiter
• What Makes BCG Attorney Search The Greatest Recruiting Firm in the World
• Top 10 Characteristics of Superstar Associates Who Make Partner
• Off-the-Record Interview Tips From Law Firm Interviewers
• Relocating Overseas
• Writing Samples: Top-12 Frequently Asked Questions
• The 'Dark Side' of Going In-house
• "Waive" Goodbye To Taking Another Bar Exam: Typical Requirements and Tips to Effectively Manage the Waive-in Process
• Changing Your Practice Area
• Moving Your Career to Another City
• A Comprehensive Guide to Working with a Legal Recruiter
• A Comprehensive Guide to Bar Reciprocity: What States Have Reciprocity for Lawyers and Allow You to Waive into The Bar

Related Articles

A Career Guide for Law Firm Partners

Practice Management

Marketing Your Law Firm Through Practice Groups

Related Video

• What is a Counsel and How does it Compare to a Partner�

Related Podcast

• How Any Attorney Can Get a $100+ Million Book of Business, Become a Partner in a Major Law Firm, or Start a Successful Business and Retire Whenever They Want�

When you use BCG Attorney Search you will get an unfair advantage because you will use the best legal placement company in the world for finding permanent law firm positions.

Don't miss out!

Submit Your Resume for Review

Register for Unlimited Access to BCG

Sign-up to receive the latest articles and alerts

Already a subscriber? Sign in here.

• Business Ideas
• Super Guides
• Innovation Report
• Canvas Examples
• Presentations
• Spreadsheets
• Discounted Bundles
• Search for:

No products in the cart.

Return to shop

Key Activities

If the immediately preceding component of the Business Model Canvas is the Key Resources , which provide the most important inputs to bring your business to life, the Key Activities include the actions that are imperative for a business to work.

Basically, these are the essential tasks that the company must carry out in order to achieve its business purpose, in other words, to meet the Value Proposition , achieve its Customer Segments , sustain a Customer Relationship , and finally create Revenue Streams .

Key Activities vary according to the organization’s Business Model . A product-oriented company, for example, includes research among main activities. A company whose income is based on third-party contracts must prioritize the management of channels.

But how to define the Key Activities of your Business Model Canvas in a functional and successful way?

Categories of Key Activities

• Production : covers all actions related to product development, manufacturing , and delivery. It usually involves significant quantities of a product. This is the preponderant activity in the Business Models focused on manufacturing.
• Problem Solving : it is the core activity of organizations seeking unique solutions to specific problems. Hospitals, consultancies, and most service providers are good examples. These are enterprises that involve a lot of knowledge management, as well as a focus on continuous learning and training.
• Platform/network: Networks, combination platforms, software, and brands can function as platforms. The company develops the platform and works continuously to keep it running, through platform management and promotion, in addition to providing services accordingly.

Typical activities

The focus of the Key Activities block is, in the end, to bridge the Value Propositions with the needs of the Customer Segments.

Note some of the typical key activities practiced by most organizations:

Research and Development

Collaborates with all other areas of the company, from production to sales, through marketing. Among its typical functions are:

• New product research: Before a product enters the production line, it goes through the research and development department, which will evaluate design, costs, and production time.
• New product development : the first phase of research leads to the development of the new product, according to the results achieved in the initial evaluation.
• Updates of existing products: In addition to new products, it is also important to take a look at existing products and how they are aligned with the needs of the market. New demands from the public or changes in the industrial scope may necessitate updating current products. In addition, faults may also appear that need to be resolved.
• Quality checks: The R & D department is also responsible for auditing and quality checking to make sure the product meets the standards set by the company.
• Innovation : Finally, the department is also responsible for observing and understanding innovations and trends in the marketplace, to ensure that the company and the products comply with the scenarios.

It is one of the most comprehensive areas and therefore involves a number of typical activities that may become Key Activities. Such as:

• Product selection and design: to start, you need to choose a product to be marketed, as well as its design. This combination is part of the company’s Value Proposition and may be responsible for the success or failure of the venture.
• Production process selection: Once the product has been decided, it is necessary to choose the production process that the organization will use, including suitable technology, machinery, and systems.
• Correct production capacity : the organization needs to be aware of the expected demand for the product in order to determine the production capacity accordingly. Both the shortage and surplus of the product can cause problems. Break-even analysis is the most popular tool among production managers to predict capacity.
• Production planning : the goal here is to create a healthy, sustainable, and economical flow. Includes a schedule, with a specific calendar of activities, within pre-established hours.
• Production control: it is the responsibility to monitor and control all production processes, correcting eventual deviations to ensure planned production.
• Quality and cost control: involves continually improving the product while trying to reduce costs, to achieve a competitive price in the market.
• Inventory control: inventory control is critical in a production-driven business. The focus is to avoid both overstocking, an excess of materials that will eventually be wasted, as well as understocking, which can delay production and result in late deliveries.
• Machine maintenance and replacement: it includes everything that concerns maintaining equipment and machinery running in perfect conditions so that there are no interruptions in the production chain.

It is the department responsible for the growth and value propositions of the company. Among its functions, which can become Key Activities, are:

• Strategy : includes the design and implementation of marketing strategies based on the goals and missions of the organization.
• Market research : aims to be fully aware of the market as well as strengths and weaknesses of the product, observing target audiences, and potential competitors.
• Product development: here marketing works alongside the development team. In this case, there is the identification of gaps in the market that can be fulfilled with the creation of a new product that meets this need.
• Communications : encompasses all communication about the product on the market, including press releases, advertisements, e-mails, etc.
• Sales support: this is when marketing works closely with the sales team, providing customer leads and promotional materials.
• Events : involves the organization and execution of events, such as seminars, product launches, exhibitions, among others, to which key and/or potential customers are invited.

Sales and Customer Service

Sales and service play a key role in customer experience. They are the main responsible for customer loyalty, who will become a defender and divulger of your brand.

In addition to being the “front” team of the company, they are also the ones who respond to customer complaints and have the power and tools to circumvent the situation and seek client satisfaction.

Also, they can perform some administrative tasks such as registering and controlling client accounts, including new and old ones.

In order to establish the Key Activities of your business, it is important that you take a look at the related components, being able to point out which activities are fundamental to deliver value propositions, to maintain a good relationship with the customer, to take advantage of the distribution and to generate revenue streams.

And, of course, this is a block that needs to be constantly revised, because as the business evolves, there may be a need to include other actions among Key Activities.

TAKE ME TO THE NEXT BLOCK -> KEY PARTNERS

Who is Daniel Pereira ?

I love understanding strategy and innovation using the business model canvas tool so much that I decided to share my analysis by creating a website focused on this topic.

More About Me

Notable Places in the Area

Travel palace.

Botanical Garden of Tver State University

Resurrection Cathedral in Tver

Locales in the Area

Morozovsky gorodok in tver.

Yuzhny Micro District, Tver

• Categories: city or town , big city , urban okrug in Russia and locality
• Location: Tver Oblast , Central Russia , Russia , Eastern Europe , Europe
• View on Open­Street­Map

Tver Satellite Map

Popular Destinations in Central Russia

Explore these curated destinations.