Scale With a Fundable Business Model
ACCORDING TO MANAGEMENT GURU PETER DRUCKER:
A business model is supposed to answer who your customer is, what value you can create/add for the customer and how you can do that at reasonable costs.
A BUSINESS MODEL ANSWERS THE FOLLOWING KEY QUESTIONS –
- Who is the customer?
- What value does the business deliver to the customers?
- How does the business operate?
- How does the business make money?
WHY IS IT IMPORTANT TO DEVELOP A BUSINESS MODEL?
The business model acts as the blueprint of the business and a roadmap for its success (or failure). This tool helps the founders decide how their business will work and make money.
It is the only documentation that makes clear –
- The business concept – the market opportunity the business capitalizes on.
- The target market the business caters to.
- The problems the business intends to solve.
- The solution the business offers and how it creates customer value.
- How the business gets its customers.
- The operating model the business follows.
- How the business makes money and what are the costs incurred to get the same?
Moreover, the business model gives a reason for the customers to choose the offering over others in the market.
Here are a few examples of business models to operate and scale your business.
- Online Marketplace
- Data Licensing / Data Selling
- Affiliate Marketing
- Network Marketing
- Peer 2 Peer Catalyst/Platform