We have heard multiple time that this business model it is good or that one is good but we don’t know that which one is exactly good for us? Does the same thing happens to you? If yes! Then don’t worry, in this article we will help you to develop a fabulous business model.
What is a Business Model?
Business model is a strategy which helps the organizations in creating, acquiring and delivering value to the customers for their products or services in which they deal. In other words we can say that the process of creating, capturing and conveying value to customers is termed as Business Model.
How to create a Business Model?
You can create an effective and efficient Business Model for your business in following ways:
Business needs Analysis:
The very first step of creating a business model is that analyzing your business in which you are going to enter. Analyze your target audience, their taste and preferences, who’s your competitor and their core competences, what are the substitutes of your product or services available in the market, etc.
Answering these questions is must before moving to the next step:
- Who’s your target audience?
- Demand of your product or service?
- Who is your competitor?
- What are the substitutes of your product or services?
- What’s your core competence?
- Cost structure of your product or service?
Now the second point after market analysis is of creating goods or products. Here creating means manufacture or production of the goods or products, providing services that you are willing to deliver to the customers according to the market analysis.
Now after the production of goods or the services, the time comes for its delivery. Delivery plays a major role in the success of any business. Delivering right product or service to the right person at right time is can be a competitive advantage for any business. In today’s fast-paced world we want that whatever we need, we get it immediately. So we should focus on the process of delivering the product to the customers and we should also monitor that how can we reduce our delivering time which can give us a competitive advantage against other competitor.
Now the last and the most important point is the evaluation, in this phase you should evaluate the customer’s feedbacks and their needs, what they actually want? Modify your products or services as per their needs and requirements. Doing this may help you in acquiring larger market share, escalating your business and increasing your revenues, which ultimately helps in the growth of the organization.
Types of Business Models:
Try to classify your business model among the given choices and study different businesses into similar business model even if they are not from your domain.
- Affiliate Model
- Customization Model
- Franchise Model
- Freemium Model
- Leasing Model
- Low-cost Model
- Pay as you use Model
- Subscription Model
- Direct Sales Model
- Loyalty Model
Types of E-Commerce Business Models:
- Business to Business (B2B)
- Business to Consumer (B2C)
- Consumer to Business (C2B)
- Consumer to Consumer (C2C)
- Business to Government (B2G)
- Government to Business (G2B)
- Business to Employee B2E)
These are some examples of business models which may help you in creating and adopting a best Business Model suitable for your business or startup.
Wish you a happy and a successful journey!!