Design your business model with detail
Business model design is a means of describing and explaining your business concept. This design model will contain the key considerations for making your business idea doable and successful. It is basically a blueprint for how your proposed company will make money. Your business model should reflect a carefully thought through product or service delivery. Be careful to include every detail necessary to carry out such a product/service to your available market.
Instructions
Design a Business Model
1. Select a product or service. Base your selection on need or desire. Answer the basic question of whether your business idea delivers something the public actually must have as a basic life need, or whether the public will have a strong desire for it out of pleasure and/or recreation. Consider profit potential first and foremost. Ask yourself what product/service has the strongest/highest net return. Avoid cumbersome production and delayed or long income cycles. Seek the most immediate ROI.
2. Know your direct competition
Scout thoroughly your competition in the same business sector (if your product is not a totally new invention). Measure specifically what you consider to be your portion of available market share. Use conservative figures when predicting sales volume and market penetration. Do not enter any flooded market unless you have truly invented a better mousetrap. Flooded markets already have negative customer issues you will be identified with.
3. Determine your product's uniqueness factor. Explain how your product will present a new or better experience for your targeted customer. Tell why your product will attract customers. Establish the novelty of your product and the increase of life quality your product will give.
4. Establish cashflow potential
Assess how often your product idea will be needed or used. Anticipate sales flow through this frequency of need. Ask yourself whether you will be making regular, daily income, or whether your sales will be cyclical, seasonal, or random. Plan and build your company's financial structure around this central, core component of your business. Understand that income source and stream is the lifeblood of your company. Without an income anticipation or schedule, you have a business in name only.
5. Determine whether your company will actually make the product or simply buy a product and market it. Include within your business design your facility location and whether or not it is a manufacturer of your product. Tout the advantages of being in complete control as the maker of your own product from actual production to store shelf delivery. Stress other existing advantages if you are not the maker.
6. Choose your delivery system
Settle upon your method(s) of product delivery to your customer base. Make your method of delivery multi-stream, multi-access if it is a commonly needed and used product. Restrict customer accessibility only if the rarity of your product will increase strong demand for it.
Tags: your product, your business, product service, product will, your product will, whether your