2. Business Model
•Is an “abstract representation
of an organization, be it
conceptual, textual, and/or
graphical.
3. Business Model
•are used to describe and classify
businesses, especially in an
entrepreneurial setting, but they
are also used by managers inside
companies to explore possibilities
for future development.
4. Business Model
•In theory and practice, the term
business model is used for a broad
range of informal and formal
descriptions to represent core aspects
of a business.
5.
6. Characteristics of a Strong
Business Model
1. Identify the specific audience.
2. Establish business processes.
3. Record key business resources.
4. Develop a strong value proposition.
5. Determine key business partners.
6. Create a demand generation strategy.
7. Leave room for innovation.
7. 1. Identify the specific audience
- Targeting a wide audience won’t allow
your business to hone in on customers
who truly need and want your product or
service. Instead, when creating your
business model, narrow your audience
down to two or three detailed buyer
personas.
8. 2. Establish business process
- Before the business can go live, one
should have an understanding of the
activities required to make the business
model work. Determine key business
activities by first identifying the core
aspect of the business’s offering.
9. 3. Record key business
resources
-Document essential business
resources to ensure the business
model is adequately prepared to
sustain the needs of the
business.
10. 4. Develop a value proposition
-Establishing exactly what the business offers
and why it’s better than competitor’s is the
beginning of a strong value proposition. Once
you’ve got a few value propositions defined,
link each one to a service or product delivery
system to determine how you will remain
valuable to customers over time
11. 5. Determine key business
partners
When creating a business model,
select key partners, like
suppliers, strategic alliances or
advertising partners.
12. 6. Create a demand generation
strategy
-Developing a demand
generation strategy creates a
blue print of the customer’s
journey while documenting the
key motivators for taking action.
13. 7. Leave room for innovation
-Don’t make a critical mistake by
thinking your initial plan is a
static document. Instead, review
it often and implement changes
as needed. .
14. Benefits of Business Model
Documentation
1. It describes how an organization fulfils its
purpose.
2. It answers the following questions: Who is
your customer, what does the customer
value, and how do you deliver value at an
appropriate cost?
15. Benefits of Business Model
Documentation
3. Maintaining a focus on corporate goals,
reviewing operational practices and ensuring
that the two are congruent.
4. It can be incorporated into public relations
material and its useful to share with
customers and partners.
16. Benefits of Business Model
Documentation
5. The mission statement or vision statement
may be included in a business model.
6. Financial goals have been the main focus of
such models but business sustainability and
corporate culture have become increasingly
integral to business plans in recent years.
17. Sample of a Business Model
Sample of a Business Model
Editor's Notes
of all core interrelated architectural, co-operational, and financial arrangements designed and develop by an organization presently and in the future, as well as all core products and/or services the organization offers, or will offer, based on these arrangements that are needed to achieve its strategic goals and objectives.
Well-known business models can operate as “recipes’ for creative managers.
including purpose, business process, target customers, offerings, strategies, infrastructure, organizational structures, sourcing, trading practices, and operational processes and policies including culture.
Outline each persona’s demographics, common challenges and the solutions your company will offer.
Example: Home Depot might appeal to everyone or carry a product the average person needs, but the company’s primary target market is homeowners and builders.
Are you responsible for providing a service, shipping a product or offering consulting? In the case of Ticketbis, an online ticket exchange marketplace, key business processes include marketing and product delivery management.
What does the company need to carry out daily processes, find new customers and reach business goals? Document essential business resources to ensure the business goals?
Common resource examples may include a website, capital, warehouses, intellectual property and customer lists.
How will the company stand out among the competition? Do you provide an innovative service, revolutionary product or a new twisty on an old favorite?
No business can function properly (let alone reach established goals} without key partners that contribute to the business’s ability to serve customers.
Using the previous example of Home Depot, key business partners may lumber suppliers, parts wholesalers and logistics companies.
Unless you’re taking a radical approach to launching your company, you’ll need a strategy that builds interest in your business generates leads and is designed to close sales. How will customers find you? More importantly, what should they do once they become aware of your brand?
Don’t make a critical mistake by thinking your initial plan is a static document. Instead, review it often and implement changes as needed.
Explain how business model will the company to accomplish their objectives. Each frame must be inter-related from the other to connect its relevance. Give the usefulness of the frame used in the model. It must be related to the vision and mission of the proposed business. Entrepreneur can use this as a direction terms of decision making, strategic planning and long terms projections.
