The best pointers to create a perfect business model

The best pointers to create a perfect business model

For many entrepreneurs and organizations; be it social, cultural or business, the term business model is yet to be assimilated, and because of that; it has become a herculean task for many to design. But, given the fact that every entrepreneur knows what their business is all about, makes this task less hard than what it appears to be. To create a business model that works, the entrepreneur or the organization must first understand the concept of it.

Business model focuses on the plan mapped out by an organization to succeed in their field of endeavor. For short, a business model is a plan that outlines a clear pathway of how an organization intends to create and capture value. This should reflect how your business intends to start, market data, how it will create value, how it will make sales, and strategies to implement your goals. It is worthy of note that business model precedes business development.

The agenda of business model is to provide a breakdown of an organizations direction; what it intends to achieve and how to go about it. To create a successful business model, there are key elements that must be taken into consideration and that are what this article discusses.

Find out your audience

Before you begin to create a business model, you must identify who your audiences are. Identifying your audience entails a clear knowledge of how they think, what they need, and how they wish to be served. This process used to be one of the most difficult tasks before the advent of e-commerce and digital marketing but with the emergence of e-commerce the process has been simplified. Because e-commerce makes it possible for products to be sold online and customers able to review products; indicating what they want to be improved upon, this process has been made very much easier than before.

Though questionnaire and other means of researching target customers to understand what they need is still valuable, the former which can be done by reading online reviews on products and services by target customers is more efficient and less difficult. If you still need further guidance on this, you can reach out to us.

Research your competitors

I do not joke with this particular step because of the opportunities it brings to the table. Most times it’s hard for new businesses to understand and create a business process that works. In fact it takes most businesses many years of operation before they can establish an effective strategy, and so may have to incur losses within their few years of operation.

But just by researching your competitors, you’ll understand their strategy and how they are generating sales. Hence you’ll have no need to reinvent the wheel but make a few inputs to their own strategies taking into consideration customer reviews to improve on products to stand a chance to perform optimally without having to run losses or trying many strategies for a long period of time.

For example, if your business deals on beauty products, all you need to do is to perform a research on the products that you intend to sell by running a search on it on Google. The authorities in this space will appear on Google first page and then you can read through their page to understand their sales strategy and how they are generating revenue. Are they doing content marketing; selling e-courses, podcasting, doing affiliate marketing, harnessing emails for the purpose of email marketing? Are they running any kind of campaigns? etc. This understanding helps you to formulate an effective strategy.

Build a business process

The best way to build an efficient business process is by learning the market and re-engineering the existing strategies and offering some improvements and creating more value. By finding out what your competitors or the major players in your business space are doing and re-engineering it, you can establish a better business process. The reason is because with their approach and customers’ feedback, you will be able to form the best ideas to create a business model that fills the basic vacuum, and provide an updated version of their system and operations while exploring the already existing sources of value creation they are employing. This process should also align with your business goals.

Implement your business process

Building or establishing a business process does not get the job done, but implementation does. Having taken into account what works and developing a process, the next thing to do is to execute the process. This could include, daily product reviews, daily writing of blogs that will address customer’s questions and increase product marketing. It could also mean reaching out daily to your potential customers whose emails you have acquired through email subscription. Anything at all that implements your designed business process, and all you have learnt from your competitors.

Identify your resources

Implementation of goals requires money therefore identifying your resources and capitalizing on them to scale your ideas is needful. You must fashion out to acquire these resources, harness it and use it for your advantage. Creating a business website to help in the marketing, sales and growth of your business is a resource that must be explored. Also assembling the right team is also a huge resource. Spotting out your key strength and developing a good plan to assemble the capital to harness is very necessary.

Your resources are your strength and once you identify and harness them you will be on your path to a successful business model.

Design value system

In as much as learning from your competition is a wonderful ingredient; your business must as well have its own value system, this is the mark that differentiates it from other organizations. Formulating your own culture and policies are what defines you as a company. Your value system goes a long way to impact on the quality of your products and how you render your service to your customers. Your value system forms a greater part of business reputation, and for this reason, it must be embedded in every business model.

Strategic partnership

Strategic partnership is important to the success of every business. Building healthy symbiotic relationship with other businesses that provides or enables the optimal performance of organization’s purpose and value creation is very relevant.

Develop a strong organization structure

An organizational structure is the pointer to how activities such as resource and task allocation, coordination, and supervision are directed toward the achievement of organizational aims. Organizational structure impacts organizational action and provides the foundation on which standard operating procedures and routines rest. It determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organization’s actions.

With an efficient organizational structure, a company will have a perfect synergy which is essential to the success of every organization.

Every organization needs to be efficient, flexible, innovative and caring in order to achieve a sustainable competitive advantage.

If you pay attention to these pointers and painstakingly apply them to your business model, the results should be positive.

Modest Nwawudu

Mr. Modest is a serial entrepreneur with deep understanding in the business landscape. His experience spans through Commodity Trade, Real Estate, Hospitality, Project Management, Internet of Things (IoT), Business development, Digital marketing, and Ecommerce. Mr. Modest is the founder and Chairman of zimbooz.com a subsidiary of Icorp Global Partners limited. His love for identifying and creating businesses of great value and impact stands him out as an entrepreneur per excellence. He possesses the rolodex of entrepreneurship with the know-how, capacity and drive for results.

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