Understanding the problem you are solving for your customers is undoubtedly the biggest challenge you will face when you are starting a business or seeking to grow your small business or start-up. Customers need to want what you are selling and your product needs to solve a real problem (important and urgent). This is the role played by Value Propositions.
But, ensuring that your product fits the needs of the market (Value Proposition) is only one part of starting or growing a successful business. The other key ingredient is figuring out how your business is going to make money. This is where your business model comes into play.
A Business Model is a plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products, and details of financing. A business model is a blueprint for small business and start-up success – your business’ roadmap for success.
Properly crafted, designed and modelled businesses warrant desirability, feasibility and viability of the business project resulting in business success. Great Business Models are crucial for the profitability, success and sustainability of any business organization.
Before you start your small business which has the potential to be a start-up and grow to be a giant enterprise, you need to create a business model. A Business Model is not a business plan. However, there can never be an effective business planning without a great Business Model and there can never be an effective Business Model without a great Value Proposition.
Business Models impact three areas of the business:
1. Everything it takes to make something – design, raw materials, stock, labour, and so on (planning).
2. Everything it takes to sell that thing – marketing and promotions, distribution (channels), delivering a service, and processing the sale (systems and processes).
3. How and what the customer pays – pricing strategy, payment methods, payment timing, and so on (revenue streams).
Business Models force entrepreneurs to put aside the excitement of business ideas and make a realistic evaluation of their potential success and growth prospects of their businesses. A proper business model helps entrepreneurs, start-ups and small businesses to figure the following core ingredients out:
1) Business concept – what problem the business is solving and for whom;
2) Customer value creation – how the business plans to create customer value;
3) Value distribution – how the business plans to deliver the products or services to customers;
4) Competitiveness – how the business plans to stay competitive; and
5) Revenue and costs – all revenue and costs you can anticipate.
Business Models help entrepreneurs, small business owners and start-ups to consider all possible areas of concern for establishing and growing their businesses.
Once you have proven the feasibility of your new business or your start-up expansion plan with a business model, you will then be ready to engage a more comprehensive business plan. There are no shortcuts to a profitable, sustainable and successful business. This is an investment worth making with huge returns for success. So, every business should have a Business Model.
Our “Start-up Business Modelling” online course is a practical approach to business model design. It highlights the critical role Business Models play in the success of start-ups and small businesses and offers the shortest possible time frame to achieve the course outcome.
After completing this course “Start-up Business Modelling”, you will be able to successfully build your own Business Model so that you can be able to properly manage your business activities resulting in efficient minimization of costs and sustainable increase in business revenue and profit.
There can never be an effective Business Model without a great Value Proposition and there can never be an effective business planning without a great Business Model.
ENROL Now to take advantage of the 70% ($350 instead of $595) promotional discount and bonuses.