The short answer: The Business Model Canvas describes how a business creates, delivers and captures value, on one page. The Traction Canvas is the sales playbook for winning customers once you know the model. We recommend the Business Model Canvas for an existing company launching a new product.

Business Model CanvasTraction Canvas
Best forExisting companies launching a new product, mapping how it fits the business.Founder-led B2B sales, from first customer to $1M in ARR.
Not designed forShowing what to do first, or how to win the product’s first customers.Revenue models, cost planning, or life after $1M.

Where they overlap and where they differ

Business Model CanvasTraction CanvasRevenueand costsPartners andresourcesExistingbusinessesCustomersegmentsValuepropositionChannelsProblem andcompetitionOrder ofstepsHow to sell

Left: covered by Business Model Canvas only. Middle: covered by both. Right: covered by the Traction Canvas only.

Box by box

LearnEarnScale12345678910

How much the Business Model Canvas covers each Traction Canvas box. Full circle: a core focus. Empty: not covered. This is our own assessment; see all models compared.

What the Business Model Canvas does well

Alexander Osterwalder created the Business Model Canvas with Yves Pigneur, and their 2010 book Business Model Generation made it a standard. Its nine blocks cover customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships and cost structure. Later work from Strategyzer, including Testing Business Ideas by David Bland and Alexander Osterwalder, added ways to test the assumptions behind each block.

  • It gives the whole team a shared, one-page view of the business.
  • It works well for established companies exploring a new product or market.
  • It covers revenue, costs, partners and resources, the parts of a business the Traction Canvas does not.

How the Business Model Canvas maps to the Traction Canvas

The Traction Canvas has ten boxes in three zones, completed in order: Learn (Boxes 1 to 5), Earn (Boxes 6 to 9) and Scale (Box 10). Here is how the Business Model Canvas lines up with it.

1 Problems2 BifurcationSegments3 Competition4 SevenSecond SaleValue props5 EnrollingChannels6 TriggerEventsChannels7 Dis-qualifying8 EmotionalFavouriteRelationships9 Won SalesAnalysis10MoatLEARNEARNSCALERevenue, costs, partners and resources sit outside

Where the Business Model Canvas lands on the Traction Canvas. Faded boxes are not covered. The table below has the details.

Business Model CanvasTraction CanvasHow it connects
Customer segmentsBox 2: Bifurcation
Learn zone
Bifurcation narrows the segment to the buyers most likely to act now.
Value propositionsBox 4: Seven Second Sale
Learn zone
The Seven Second Sale turns the value proposition into almost instant interest.
ChannelsBox 5: Enrolling
Box 6: Trigger Events
Learn, Earn zone
Enrolling and Trigger Events are the first sales channels for a new product.
Customer relationshipsBox 8: Emotional Favourite
Earn zone
Emotional Favourite makes you the vendor buyers prefer and trust.
Revenue streams and cost structureOutside the canvasOutside the Traction Canvas. The Business Model Canvas covers these; the Traction Canvas does not.
Key resources, activities and partnershipsOutside the canvasOutside the Traction Canvas. These are the operating side of the business.

The gap the Business Model Canvas leaves

LEARN10xEARN100xSCALE1,000xCHASMBusinessModel CanvasTractionCanvasThe gapIdeaFirst customersRepeatable sales$1M ARRSeries A

How far each canvas takes a founder on the road to $1M in ARR and a Series A. Bar strength shows how much of each zone is covered, using the box-by-box ratings above.

The Business Model Canvas shows what the business is, but not what to do first or how to win the first customers. It has no block for the problem or the competition, and nothing on timing, qualifying buyers or repeatable wins, which are the Earn boxes (6 to 9).

When to use the Business Model Canvas, and when to use the Traction Canvas

Use the Business Model Canvas when you are an existing company launching a new product: it shows how the new product fits the business. Then use the Traction Canvas to win that product’s first customers, starting with Box 1. If you are starting a brand new company, especially as a first-time founder, we recommend the Lean Canvas instead.

Frequently asked questions

Should I use the Business Model Canvas or the Lean Canvas?

We recommend the Lean Canvas for a brand new company, especially if you are a first-time founder, and the Business Model Canvas for an existing company launching a new product. Either one pairs with the Traction Canvas.

Does the Traction Canvas replace the Business Model Canvas?

No. The Business Model Canvas covers revenue, costs, partners and resources. The Traction Canvas covers how to sell. They answer different questions.

Find out which box you’re stuck on

Every founder under $1M in revenue is stuck on one of the ten boxes. The free Traction Readiness Diagnostic shows you which one, and where to start.

Take the free Traction Readiness Diagnostic

See how the Traction Canvas compares with other startup models