What is a business model?
A.) An entity posing for a picture-perfect business
B.) A kit that comes with of plastic parts and airplane glue
C.) The mix of revenue streams, customer segments, product or service offerings, supply chain, supporting resources and financing sources
If you answered, “C”, you are correct!
As you create and grow your business, you might be asked…
“What is your business model?” The inquisitor seeks to understand if you have a sustainable and scalable business. She wants to understand if you have considered all of the factors associated with setting up a successful business: target customer, customer acquisition at a reasonable cost, ability to fulfill the promise (value proposition) and whether a profit can be realized.
Consider these factors as you analyze your business model:
1) Value proposition aka The Promise – the problem you are solving, for whom and how.
2) Revenue – where are your customers and how will you reach them? Are they ready and willing to buy what you have to offer? If not, how do you convince them to engage with you?
3) Cost – how will you fulfill the promise you make to customers and ensure that their expectations are met? What does the supply chain entail and who are your key partners? Can you deliver over and over again and at the same level of reliability and quality each time?
And remember, as you learn more about your market and as your business evolves, the business model will change. It is dynamic!
If you have questions about your market and how to reach your target audience and what to say when you get there, email Ruckus Partners at firstname.lastname@example.org today! We are happy to help you realize your goals!