Interviewing Your Ideas— Create a Business Model in 10 Simple steps
“During the 1990s, when the business world was buzzing with talk about a new economy and new business rules, people — even business gurus — seemed to forget the part about making money, and business people sidelined the use of business models. But when the dot-com boom began to bust, suddenly everybody started asking about business models again.
A business model isn’t something you build from the ground up. When management-types ask about a business model — as in, “So what’s your business model?” — they really want an answer to a much more direct and basic question: “How do you plan to make money?”
Behind that question is a lineup of other questions”
See bellow the 10 questions you should ask yourself to write a killer business model:
1. What problem am I solving?
This is the main reason why startups exist in the first place. It is, always was and should forever be about bringing better solutions to a problem. The problem must be well defined for example “I want to get updates about my hobbies and interests without wasting time surfing on the internet.” Define it shortly and accuratly. Remember always that you are solving a problem, not saving the world.
2. Who needs my product/service?
This is where you turn on your researcher instinct to the fullest. Discover your targeted audience, who are they, what are they concerned about, how old are they, what gender are they, what’s their life style, the list goes on. Go as deep as possible, and never forget to find out how are they dealing with those problems at present. Ask if they are willing to order the product.
3. Why will people buy from me?
This is all about adding value. After doing your research you’ll know: what’s missing in the market, what competitors are good at and what they forgot to do. Describe the ultimate benefits you’ll bring to your customers in an inspiring way, make a slogan. For instance: Steve Job’s “1000 Songs in your pocket” is way more clear than “X number of Gigagabites and a microprocessor capable of…” Are you serious?
4. How is my solution going look like?
Describe shortly and clearly your products features. Watch out! Making a complex description can repulse clients even if you have a great product.
5. How will I reach customers?
Based on your research test and choose the best way to effectively reach to your audience, wether digitally (blogs, ebooks, advertising) or conventionally (workshops, shows, free give aways). At this point your job is to pick the appropriate platform to build relations with your audience, engage, influence, educate and invoke reciprocity.
6. What are the costs of running this business?
Plan very well your organizational structure, your activities and processes to make a good estimation of costs like: marketing campaigns, production, wages, materials, and so on.
7. What key activities should I carry out to develop my business?
It depends on what your business is about. If you’re running a clothing company you will surely need to design new models and consequently develop a design department. Discovered the cure of a disease that only affects children? Partner up with a company that also works with children. This tool is very powerfull and ignoring it dropping a basket filled with opportunity.
8. What’s my revenue model?
Are you running an affiliate program? Are you rewarding referrers? Are you selling bundles? Charging a subscribtion fee? Provision? Determine what works best and feel free to combine them wisely.
9. What metrics am I going to use?
Again based on your research as well as what’s most effective to your business decide what metrics you’ll use. Number of newsletter subscribtions, number of orders per moth, and so on.
10. What gives me the unfair advantage?
What’s so unique about your business that check-mates your competitors? Are you well connected? Is your staff very well qualified? Perhaps your brand supports a cause? Find the spark in you and position your brand as different.
Sources: http://www.dummies.com/how-to/content/defining-your-business-model.html- Copyright © 2015 & Trademark by John Wiley & Sons, Inc. All rights reserved photo credit: <a href=”http://www.flickr.com/photos/78011127@N00/2866699310″></a> via <a href=”http://photopin.com”>photopin</a> <a href=”https://creativecommons.org/licenses/by-sa/2.0/”>(license)</a>