Best 10 Key Activities in Business Model Canvas for Startups in 2025
In 2025, the Business Model Canvas (BMC) remains an essential strategic management tool for startups and entrepreneurs. By defining key activities, businesses can effectively devote their resources to create value, reach their customer segments, and achieve sustainable growth. This article dives into the best 10 key activities in the Business Model Canvas, providing deep insights, examples, and tips for startups and entrepreneurs.
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Understanding Key Activities in Business Model Canvas
Key activities represent the most critical actions that a company must perform to operate successfully. These activities are essential for delivering the company's value proposition, reaching markets, maintaining customer relationships, and earning revenues. Here are some common key activities that businesses focus on:
- Production: This involves designing, making, and delivering products in substantial quantities and/or of superior quality.
- Problem Solving: Businesses in consulting, healthcare, and tech industries focus on providing specific problem-solving services.
- Platform/Network: Companies managing platforms and networks perform activities related to maintaining and developing the platform (e.g., Airbnb, Uber).
Why Key Activities Are Crucial
Key activities help businesses to:
- Deliver value propositions to customers
- Reach target market segments effectively
- Maintain strong customer relationships
- Generate revenue and sustainable growth
Let's explore each of these key activities in detail.
Top 10 Key Activities in Business Model Canvas
1. Production Activities
The Business Model Analyst defines production activities as designing, making, and delivering products in substantial quantities. These activities are common in manufacturing businesses and require significant investments in production resources.
2. Problem-Solving Activities
Such activities focus on providing new solutions to customer problems, often seen in consulting services. They require developing new knowledge and may involve significant research and innovation. The Impact Business Model Canvas offers great insights into problem-solving activities.
3. Platform/Network Management
Key for businesses managing platforms or networks like Uber or Airbnb, these activities involve maintaining and developing the platform. A detailed exploration can be found in the Ca.Indeed.
4. Marketing and Sales
Core activities here include market research, advertising, sales strategies, and managing customer relationships. These activities help in attracting and retaining customers.
5. Supply Chain Management
Efficient management of the supply chain is essential for businesses that rely on resources and products from numerous vendors. This ensures timely and cost-effective delivery of products and services.
6. Customer Relationship Management
This covers activities involving interaction and communication with customers to maintain their satisfaction and loyalty. Good CRM can lead to repeat business and word-of-mouth promotion.
7. Human Resources Management
Managing recruitment, training, employee engagement, and welfare are crucial activities to ensure that the workforce is motivated and productive.
8. Product Design and Development
This involves creating new features and enhancements to meet changing customer needs. It requires continuous innovation and a feedback loop with customers.
9. Financial Management
Includes activities related to budgeting, financial planning, and managing revenue streams and costs, ensuring the organisation remains financially healthy.
10. Legal and Compliance
Focusing on understanding and adhering to the laws and regulations relevant to the business, this activity is crucial for risk management.
How to Identify Key Activities for Your Business
Step-by-Step Guide
- Determine Your Value Proposition
- Identify what makes your business unique and what value you are offering to your customers.
- Identify Customer Segments
- Determine who your customers are and their specific needs.
- Map Your Key Resources
- List available resources that you will use to deliver your value proposition.
- Define Key Activities
- Based on your resources and customer segments, outline the essential activities to deliver value.
A practical approach to identifying and defining key activities can be explored with the detailed examples provided by upGrad and Smartsheet.
Common Mistakes to Avoid
- Overcomplicating Activities: Keep the activities clear and focused on what drives your business forward.
- Neglecting Collaboration: Ensure all departments are aligned and collaborate efficiently.
- Ignoring Market Trends: Regularly update your activities to reflect current market trends and conditions.
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Conclusion
By focusing on the best key activities for your Business Model Canvas, startups and entrepreneurs can strategically align their resources to achieve sustainable growth and competitive advantage. Utilize tools like the F/MS Business Model Canvas Tool to expedite your planning and ensure that your approach is structured and data-driven. This will help you stand out in the dynamic market landscape of 2025.
FAQ
1. What are key activities in the Business Model Canvas?
Key activities are critical actions necessary for a company to operate successfully, deliver value proposition, reach markets, maintain customer relationships, and earn revenues. Learn more about key activities
2. Why are key activities essential in the Business Model Canvas?
They enable businesses to deliver value propositions to customers, reach market segments effectively, maintain strong customer relationships, and generate revenue for sustainable growth. Explore the importance of key activities
3. What is involved in production activities within the Business Model Canvas?
Production activities entail designing, making, and delivering products in significant quantities and/or superior quality, commonly seen in manufacturing businesses. Understand production activities
4. How do problem-solving activities fit into a Business Model Canvas?
Problem-solving activities focus on developing new solutions to customer problems, often necessitating research and innovation, typical in consulting and tech services. Learn about problem-solving activities
5. What roles do platform/network management activities play in business models?
These activities involve developing and maintaining platforms crucial for businesses like Uber and Airbnb, ensuring their continuous operation and improvement. Discover platform/network management
6. What are key activities involved in marketing and sales?
Core activities in marketing and sales include market research, advertising, sales strategies, and managing customer relationships to attract and retain customers.
7. What is the significance of supply chain management in the Business Model Canvas?
Efficient supply chain management ensures timely and cost-effective delivery of products and services, necessary for businesses relying on numerous vendors.
8. How is customer relationship management reflected in key activities?
Maintaining interactions and communications with customers to ensure their satisfaction and loyalty, leading to repeat business and word-of-mouth promotion.
9. Why is financial management important in key activities?
Activities related to budgeting, financial planning, and managing revenue streams ensure the organization remains financially healthy.
10. What does legal and compliance activity entail in the Business Model Canvas?
Understanding and adhering to laws and regulations relevant to the business is crucial for risk management.
