Many want to start their own business, but few know how to competently take up this. Looking for an investment? Write a business plan? Make contacts with partners or win the hearts of customers? What to grab in the first place? The business model will help answer this question. At first glance, everything seems simple.
We provide services or deliver goods - and for this we receive money. However, in reality, mechanisms and relationships are more complex. The business model describes the concept of how the organization creates tangible or intangible values, how it distributes them and how it receives income from the results of its activities.
In order to present the idea comprehensively and multifaceted, it will be necessary to answer several questions, decide on a number of parameters. Here is one of the main ways you can develop a business model.
First, decide on the customers. Who will be the main customers? Analyze the target audience - gender, age, financial situation of customers, as well as what the product or service will be for them - luxury or first necessity.
Secondly, find out the significance - what customer needs do your products satisfy, what problems do they solve?
Will what you offer be effective, efficient, and possibly the cheapest? Each of these values will affect the business model in its own way, and the concept of advertising and pricing will depend on them. In addition, things will go differently.
Thirdly, think over marketing channels. How do you want to get in touch with your customers? Will it be a boutique, or maybe an online store or a network of recommendations? Will the communication take place face-to-face or only through the network or by phone?
Fourth, think about relationships, that is, the psychological component. What kind of opinions about you can be expected from customers and how much did it cost you? Do you create the image of the most affordable or elite business for the elite? How will you build relationships with potential customers - by automating the process (for example, newsletters, forms) or will you actively participate in the life of the local community? Do you want to organize events, seminars, conferences, shows?
Fifth, study cash flow. How much do your customers pay now and how much will they be willing to pay? What percentage of the various revenue streams in the business? Some take into account time-based payments, others offer a package of services, still others offer a subscription, and others offer direct sales.
Sixth, analyze the resources on which your business model will be based. Example? Author's restaurants, publishing houses, agencies, that is, cases when the reputation of the case is based on the image and fame of the owner. Or are these intellectual resources, such as name, knowledge, skills, established relationships and connections in society. Physical sources of profit are equipment, vehicles, systems, software. For example, as a client, you don’t care who owns the taxi network and its reputation.
For you, the tariff, the speed of order execution and the serviceability of the car will be important.
Financial resources may consist of investments, cash, a credit line - who is ready to provide funds and on what terms.
Seventh, an important point, which should include a description of the business model, is activity. What to do, what measures will need to be taken to sell, find new customers and maintain relationships with existing ones? Perhaps you will regularly offer regular customers discounts, introduce new products or services. Or take an active part in an industry conference, write an article in a professional magazine.
The eighth point that the business model should include is partners. Who are they? How can you help them, what kinds of activities will they carry out for you? You can’t take it yourself, because others have skills and knowledge. They will do the job faster, and you will take up your creative activities at this time. Accounting, marketing, maintaining a fan page, writing texts - all can be transferred to partners.
After analyzing all these points, you will be able to comprehensively present the business model of your business, outline development directions and begin to take the first steps on the path to success.