What is a business model for you?
You may not have an academic definition, but you are very likely to say it is the way (actions and strategies) that will lead to more money for you.
But it will be incomplete to say so. The notion is so multisided that it also includes the measures marketers take to make users come back to the brand again, what are the benefits from any your decision and how suppliers make their business with the brand’s help.
Is it all about money?
Definitely, not, as it is not monetization only. It is a deep thing that covers understanding of your aims, setting goals, communication with clients and supplies.
According to the model you have once chosen there will always be a key element that will play major part in your strategies and that will determine this or that action from you side.
Business model aims to reveal your potential and value to the clients. Covering all the town at once will be easy and hardly useful – it is better to think what niche you can take and what you can offer people there. Finishing in your area you can start conquering neighbour ones.
Traditional components of business model
While it is a vague issue of definition, but the structure of this notion is quite clear. The key components are as follows:
- Business partners;
- Main types of activities;
- Your valuable offer;
- Ways of keeping terms with clients;
- Clients’ area;
- Key resources;
- Channels of distribution;
The scheme above looks quite slender, it is still in use. But there’s something changed. We have a new particle coming – it is flexibility. Our world is so rapidly changing and it is very important to stay solid, but be ready to adapt to various changes and challenges.
You may see start-ups trying on various experiments and new features. Their business models in this case is just a part of the plan we have described above. Young and ambitious people start them and the problem is that there thousands of them appearing and disappearing… Our advice here is to be patient and have a very deep study of your business even at the stage of planning.
Business model is a result of work of two parties
Marketing is a science about people and their interaction with brands and their goods and services. And the end users they also participate in any company’s mission by sharing their feedbacks, buying or not buying this or that product – thus, they change the model.
Have you already found your business model?