We believe a business model without considering cost and benefit for people and culture is not done. This is a factor you should ALWAYS consider and when you do, your business will have an impact because you’re actually solving real problems.
If you’ve ever wondered how to transform your business model to not only thrive financially but also create a positive impact on society and the environment, you’re in the right place. Our approach using the Business Model Canvas might help you.
To innovate business models for impact using the Business Model Canvas, you start by redefining the traditional focus on financial viability to include social and environmental costs and benefits. This approach goes beyond just optimizing to succeed financially but also creates significant positive impacts for both people and the planet, and ultimately, purpose.
To put the BMC into action: follow these steps:
- Redefine Viability:
- Expand the definition of viability to include not only financial aspects but also the costs and benefits for people and the planet. This involves considering the environmental and social impact of your business activities.
- Evaluate Your Cost Structure:
- Assess all costs involved in your business operations. This includes traditional financial costs and also the environmental and social costs. For instance, evaluate the impact of using virgin materials versus recycled materials in bike production.
- Optimize Revenue Streams:
- Look at how your business makes money. Consider if there are ways to integrate social or environmental benefits into your revenue model, such as adding a tree-planting initiative for each bike sold.
- Incorporate Impact in Key Activities:
- Modify your business activities to reduce negative impacts and enhance positive effects on people and the planet. This might involve changing manufacturing processes or the type of materials used.
- Adjust Resources and Partnerships:
- Reevaluate the resources you use and the partners you work with. Aim for partnerships and resources that align with your impact goals, like sourcing from sustainable suppliers.