Business Model & Key Activity Canvas — Why Every SME Needs One

“If you can’t describe how your business makes money in one page, you don’t really understand it.”

Over the years, I’ve asked hundreds of business owners a simple question:

“Can you clearly explain how your business makes money?”

Surprisingly few can.

They know their products, customers, and people — but struggle to connect the dots between revenue, cost, and profit in a way that’s visual, simple, and actionable.

That’s why I created a more practical tool for small and medium-sized businesses:
the Business Model & Key Activity Canvas.

It’s a one-page map that helps leaders see how their business works — where value is created, where waste occurs, and how to drive profitability and cash flow sustainably.

What Is a Business Model & Key Activity Canvas?

A business model describes how a company creates, delivers, and captures value. It’s the blueprint for how money flows through your business.

The Business Model & Key Activity Canvas takes that blueprint and makes it visual, dynamic, and measurable — specifically designed for SMEs who want both clarity and control.

It’s an evolution of the popular Business Model Canvas by Alexander Osterwalder — an excellent innovation framework for startups and corporates.

But for established small to mid-market companies, a different question matters more:

“How do we make money — and how do we ensure we keep doing it profitably?”

That’s where this version adds value.

Why the Original Business Model Canvas Falls Short for SMEs

Osterwalder’s canvas is brilliant for ideation and innovation, but in practice, many smaller businesses never revisit it after the startup phase.

SMEs need something more hands-on — a tool that not only maps the business model but connects it to:

• Day-to-day operations
• Key financial drivers
• Team accountability
• Ongoing performance improvement

The Business Model & Key Activity Canvas bridges that gap.

Why Every SME Needs This Canvas

Here’s why this tool has become essential in my work with Scaling Up clients:

1. Clarity and Communication
   A visual map makes your business easier to understand. It simplifies complex systems so leaders, teams, and stakeholders can see the full picture — not just their piece of it.
2. Alignment
   When everyone understands how the business makes money, they make better decisions. The canvas creates alignment around priorities, metrics, and strategy.
3. Performance Monitoring
   Each section of the canvas can have KPIs attached — letting you track Actual vs Target for your key drivers.
4. Continuous Improvement
   Mapping out your activities reveals inefficiencies, gaps, and opportunities. This makes it easier to streamline workflows and improve productivity.
5. Business Planning and Decision-Making
   The canvas becomes your go-to reference tool in quarterly planning and strategy sessions — helping teams test ideas and evaluate impact before taking action.
6. Risk Management
   Visualising dependencies between activities highlights vulnerabilities, so you can plan contingencies before issues become crises.

The Practitioner’s Insight

When I first developed this canvas, I used it in client sessions to unpack how their businesses truly worked.

Within 30 minutes, lightbulbs would go on.

Leaders could suddenly see the relationships between sales, operations, cash flow, and profitability — and identify what was working (and what wasn’t).

It became a shared language.

Teams gained alignment on:

• How the business creates value
• Where the key drivers of success lie
• What needs to improve for scale and sustainability

And most importantly, the canvas made performance management a living process, not a one-time workshop.

The Canvas in Action

At its best, the Business Model & Key Activity Canvas becomes a leadership tool that evolves with your business.

It’s used in strategy meetings, reviewed quarterly, and continuously updated as priorities shift.

Leaders can:

• Compare performance (Actual vs Target).
• Document actions for improvement.
• Keep every department connected to the company’s financial engine.

It’s not static — it’s a management rhythm that drives focus, efficiency, and accountability.

The Hard Truth — Why So Many Businesses Struggle

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

In my experience, that’s not due to lack of effort. It’s due to lack of clarity.

Most leaders can’t see how their business operates as a system — so they can’t optimise it.

Once they understand their model and track key drivers consistently, results change fast:

• Profitability increases.
• Cash flow stabilises.
• Leaders regain control (and sanity).

Final Thought — Clarity Creates Control

Your business model isn’t just a document — it’s a mirror.

When you map your key activities, align your team, and measure what matters, you move from reactive firefighting to proactive leadership.

Clarity is what turns complexity into growth.

Want to map your business model for better control, profitability, and focus?
Contact tedb@strategyandexecution.com.au for a free 30-minute discovery meeting.

Or take our Scaling Up / Four Decisions Needs Assessment to benchmark your company against high-growth businesses.

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.

Want help building your One-Page Personal Plan?

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