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What is a Business Model?

What is a Business Model?

What is a Business Model?

A business model is something you create for yourself in the primary phase of starting a business – in other words the “blue print” of your business. It helps clarify that you have a product or idea that people are interested in and are willing to buy. A business model also helps identify who your potential customers are and how your business will operate.

Why Use a Business Model? Too often business owners start a business without taking the time to map out each area that will allow them to run and operate a successful business. By working out a business model you are forced to focus on creating a product that meets your customers’ needs, revenue strategies, costs, margins, distribution strategies etc. If done properly, it will reduce your chance of failure.

what is a business modelThe Business Model Canvas

This is a strategic management and entrepreneurial tool created by Osterwalder & Pigneur. Here are the nine different segments of the Business Model Canvas to help you design yours:

1)      Value Proposition: What needs are you trying to meet?

2)      Customer Segments: What type of customer relationships do you need to build? Will they be low touch or high touch or in between? 3)      Channels: Which channels are available to create awareness around your product or service?

4)      Customer Relationships: How will you create demand?

5)      Key Activities: What things need to happen to get the wheels of the business turning? Think of everything here, from office to website. 6)      Resources: This includes looking at suppliers, commodities and funding.what is a business model

7)      Partners / Stakeholders: Accounting, bookkeeping and legal as well as platforms that can work symbiotically with your business. 8)      Cost Structure: Where will your business operate? Will you need a laptop? What kind? Your Business Model needs to include all these potential overheads.

9)      Revenue Streams: Consider your different revenue streams. Don’t focus on price, but rather look at how people will buy and how to monetise.

Online Resources https://strategyzer.com/canvas/business-model-canvas

Recommended Business Model Tool to Use The Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers is detailed and provides you with a template, as well as questions to guide and assist you to develop and map out your business model.

For a secondary analysis on creating a disruptive Business Model read this great article on A New Approach to Business Model Innovation and feel free to contact us if you need any encouragement or advice.

Contact: Nokwazi Mzobe, Founder at Matoyana

Email: nokwazi@matoyana.co.za

Matoyana Business Solutions is a boutique business consulting company located in Johannesburg, South Africa. It is targeted at start-ups, small and medium enterprises across Africa.

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“Graphic design will save the world right after rock and roll does.” –David Carson https://t.co/UOdQ5BVsMW #InsideDesign via @InVisionApp
We need US$40B from donors & 15-20% of domestic budgets per yr to give every child the freedom+chance to learn.… https://t.co/8OfzFwiLac
Hi @larsloekke @EmmanuelMacron @alexanderdecroo @MinPres 214 million+ women & girls who want to avoid or delay preg… https://t.co/BaYs7VTrsq
@RedbullAmaphiko 2019 intake _ Applications are open & will close 30th of Nov 2018. https://t.co/pUrFByCbl8
@StandardBankZA can you live up to your service promise? Winning marketing awards but your service & delivery is qu… https://t.co/oVtEpMRaba
Thank you for reminding us to recycle and support fair trade coffee farmers, @LaughingManCo! ☕🌱https://t.co/nJJO24tyjy
.@CyrilRamaphosa @tito_mboweni Thanks for supporting menstrual health & sanitation. Pls join us at @GlblCtzn Festiv… https://t.co/tuOH2W6gNG
.@narendramodi @JPNadda @arunjaitley @umasribharti thank you for your commitment to #UHC & #WASH! Will you pledge t… https://t.co/6BKsj3bAiv
We can never know it all when it comes to conservation and saving more water!! Thank you for teaching us how to sav… https://t.co/6Ud1BJc9Qd
Access to adequate hygiene and sanitation shouldn’t have to be an impediment for any school kid! Other corporates s… https://t.co/7a3K3sRLOY
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