Business Model Canvas — A Practical Tool for SMEs to Drive Profit and Clarity

“What you don’t measure, you don’t understand — and what you don’t understand, you can’t manage.”

Over the past two decades, I’ve asked hundreds of CEOs and business owners a simple question:

“How does your business actually make money?”

You’d be surprised how many struggle to answer it clearly.

That’s why I created a visual, practical way to help leaders see their business model in action — the Business Model & Key Activity Canvas.

It’s one of the most powerful one-page tools you can use to gain control over performance, profitability, and cash flow.

Why Understanding Your Business Model Matters

Most business owners are so focused on daily operations that they rarely step back to look at how all the moving parts fit together.

Without this clarity, decisions are reactive, not strategic — and opportunities to improve efficiency, pricing, or profitability slip through the cracks.

A business model defines how your company creates, delivers, and captures value.

When you truly understand it, you can:

• Identify your key revenue and profit drivers.
• See where bottlenecks and waste are hiding.
• Focus resources on what matters most.
• Improve communication and alignment across your leadership team.

The Origin — The “Needs Analysis” Conversation

When I first meet with clients, I start by conducting what I call a Needs Analysis — a guided conversation that uncovers how their business really works.

We sketch the answers to questions like:

• What products or services do you offer?
• Who are your target customers?
• What’s your value proposition?
• How do you sell and convert leads?
• What’s your average sale price, margin, and conversion rate?
• How do you deliver your product or service?
• What are your key costs, overheads, and profit margins?
• What are your productivity levels and cash conversion cycles?

As the conversation unfolds, we map everything visually — showing the flow of cause and effect between activities.

For many leaders, this is an eye-opener. They often say:

“I’ve never seen my business laid out this clearly before.”

Introducing the Business Model & Key Activity Canvas

To make this process easier and more collaborative, I developed a Business Model & Key Activity Canvas — a one-page visual that captures the essential elements of your business.

Unlike traditional models, this version is designed specifically for small and mid-sized companies.

It’s laid out in blocks instead of circles, allowing space to describe key elements in more detail.

It includes:

• Products & Services
• Target Markets
• Value Proposition
• Sales Process & Conversion Metrics
• Delivery & Operations
• Key Costs & Margins
• People & Productivity Drivers
• Profitability, Cash Flow & KPIs

By visualising your business this way, your leadership team can “connect the dots” and see how their department impacts the whole organisation.

Why This Canvas Works for SMEs

The canvas simplifies complex business mechanics into a single page that’s easy to understand, share, and discuss.

It becomes a living document — one you can revisit regularly to:

• Identify strengths and weaknesses.
• Track key metrics (Actual vs Target).
• Set quarterly improvement actions.
• Review progress in strategy sessions.

It’s a management tool that keeps your business model alive, not a one-time exercise that collects dust.

The Scary Truth — Many Businesses Don’t Know Their Model

An article in The Australian recently reported that nearly half of all small businesses are not making a profit.

In my experience, that’s no accident.
Most of these businesses don’t truly understand their own financial engine — how value flows from customers to cash to profit.

And it’s not just small businesses — many mid-sized companies struggle too.

Understanding your business model and its key activities is the first step to working ON your business, not just IN it.

Final Thought — Clarity Creates Control

A business model isn’t just a strategic concept — it’s your reality on one page.

When your leadership team sees the full picture — from strategy to cash — they make smarter decisions, take ownership, and drive better results.

If you can’t clearly explain how your business makes money, start there.
Clarity is the foundation of control.

Need help mapping your business model for better performance and profit?
Contact tedb@strategyandexecution.com.au for a free 30-minute discovery meeting.

Or take our Scaling Up / Four Decisions Needs Assessment to see how your business stacks up against other high-performing companies.

TED BONEL, SCALING UP PRACTITIONER – STRATEGY & EXECUTION BUSINESS ADVISORS

Are you looking to scale your business and execute strategy with clarity and impact? I help CEOs and founders turn big ideas into real-world results, guiding small to mid-market companies through tailored strategic insights that drive growth.

My expertise lies in simplifying complexity – bridging high-level strategic frameworks with the practical realities of running a business. Unlike many consultants who focus solely on theory or execution, I specialise in both—translating strategy into actionable, transformative steps that deliver lasting results.

Need help mapping your business model for better performance and profit?

Contact me at tedb@strategyandexecution.com.au to schedule a free 30-minute discovery meeting.

ABOUT STRATEGY & EXECUTION

For over 20 years, Strategy & Execution has supported leaders and organisations in developing and executing winning strategies. We provide expert facilitation, executive education, and hands-on consulting to help businesses refine their strategic direction and implement it effectively.

Using proven methodologies like Scaling Up, E-Myth Mastery, Outthinker, and more, we challenge conventional thinking and equip organisations with the tools to accelerate growth. Our approach is dynamic—combining deep business experience with practical execution. We don’t just advise; we roll up our sleeves and work alongside you to make strategy happen.

If you’re preparing for a strategy development or execution challenge and are committed to creating real value, we’d love to hear from you. Learn more about our work or upcoming workshops