Business model: 8 points on the way to success

Many people want to start their own business, but few know how to competently take it. Looking for an investment? Write a business plan? Establish contacts with partners or win the hearts of customers? Why grab in the first place? The business model will help to answer this question. At first glance, everything seems simple. We provide services or we deliver goods - and for this we get money. However, in fact, the mechanisms and relationships are more complex. The business model describes the concept of how an organization creates tangible or intangible values, how it distributes them, and how it derives its revenues from the results of its activities.

In order to present the idea comprehensively and multifaceted, it will be necessary to answer several questions, to decide on a number of parameters. Here's one of the main ways how you can develop a business model.

First, decide on the customers. Who will be the main customers? Analyze the target audience - gender, age, financial position of customers, as well as what will be a product or service for them - luxury or first necessity.

Secondly, find out the significance - what customer needs are satisfied with your products, what are their problems solve? Will it be what you offer, effective, efficient and, perhaps, the cheapest? Each of these values will influence the business model in its own way, the concept of advertising, and pricing policy will depend on them. In addition, otherwise the development of the case will take place.

Third, think through the sales channels. How do you want to get in touch with your customers? Will it be a boutique, maybe an online store or a network of recommendations? Will the communication go face to face or only through the network or by phone?

Fourth, think about the relationship, that is, the psychological component. What is your opinion about you from customers and what 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, mailing lists, forms) or will you actively participate in the life of the local community? Do you want to organize events, seminars, conferences, shows?

Fifthly, study the cash flow. How much do your customers pay now and how much will they be willing to pay? What percentage are the various streams of income in business? Some take into account time-based payment, others offer a package of services, others - subscriptions, the fourth - direct sales.

Sixth, analyze the resources on which your business model will be based. Example? Author's restaurants, publishers, agencies, that is, cases where the reputation of the case is based on the image and fame of the owner. Or they are intellectual resources, such as name, knowledge, skills, established relationships and connections in society. The physical sources of profit are equipment, vehicles, systems, software. For example, as a client, you will not care who owns the taxi network and what his reputation is. For you the tariff, speed of execution of the order and serviceability of the car is important. Financial resources can consist of investments, cash, credit lines - who are 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 it take to sell, find new customers and maintain relations 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 journal.

The eighth item that the business model should include is partners. Who are they? How can you help them, what kinds of activities will they perform for you? You can not take everything for yourself, because others have the skills and knowledge. They will do business more quickly, and you will be busy at this time with your creative activity. Accounting, marketing, fan-paging, writing texts - everything can be transferred to partners.

After analyzing all these points, you will be able to comprehensively present the business model of your case, outline the direction of development and begin to take the first steps towards success.