Rajat Negi

Introduction : Business Model

Business challenge bro pjl92614mk7kzm42bftxrvs4hxzpza3onzjbox6pfa - Introduction : Business Model

Well, In developing countries like India, There is N number of opportunities for business or startups to grow business. I believe it purely depends on a business model that How it will perform in the future.

Whenever I met an entrepreneur, I always ask him what is your business plan?

Can you Draw your business canvas model on a piece of a sheet? 

I believe that Sales are an integral part of any business. Yes, Marketing Plan for any business comes into the picture. Look around yourself and try to figure out some business model examples. Everyone has their own business structure. and they also have a planned format for it.

It is very important to figure out the business model, as the revenue model depends on it.

Sometimes, It is very difficult to go through the process of business model generation. I promise to you after reading this post you won’t find any difficulty in writing a business plan and you can easily create a simple business plan. You can also create a business plan presentation for your business or startup.

Time Travel to Understand History of Business Model

Six decades ago, there are more than 20 frameworks to define any business but the latest definition of Business Model Canvas is invented by Alexander Osterwalder.

Alex assembled a team of 400 business professionals in 2005 to develop a universal foundation for all businesses.

A definition of a business model that applies to both start-ups and established companies.

Business Canvas Model image - Introduction : Business Model

Don’t be confused I will try to explain each and every section of this business plan or you can say this as a business map. 

Explanation of Business Model

Easy things first, Let’s categorize people into two categories from the lens of business. So customers will act like OUTSIDERS and people who are running the business will act like INSIDERS.

Now Customers are always the first priority of any business so I will discuss the Right Part of the Canvas.

customer  - Introduction : Business Model

Remember you are to going to focus only on one word “DESIRABILITY”

  • Customer Segment

People who are paying your business. It is the source of income for your business. You can write which segment of the audience you are targeting for your business. For which group you are creating value?

Example:- Chocolate makers will try to target children.

  • Customer Relationship

How do you interact with your customer? In this section, you can share the mode of communication with your customer.

Example:- It can be done on anything. eMail, Phone, etc.

  • Customer Channel

From which channel you are going to deliver the value to your customer. 

Now let’s discuss the left part of the business canvas model.

key partners  - Introduction : Business Model

Remember you are to going to focus only on one word “FEASIBILITY”

  • Key Partners

In this section, you can write outsourced which developed the company. A manufacturer can write about his/her suppliers of raw material.

  • Key Activities

For this, you have to think What activities are the most important for your customer relationship, revenue streams, channels? Special activities that help in creating and delivering value.

  • Key Resources

In this you can write what are the unique strategic assets should your business have to compete? You can also write about your people who are creating and delivering value.

Now let’s discuss the last not least the “T” Part of the Business Canvas Model.

T part - Introduction : Business Model

Remember you are to going to focus only on VIABILITY, VALUE, and SUSTAINABILITY of the business. 

  • Value Proposition

Why do customers buy? Which needs are you satisfying? Why do our customers like us and stick with us?

  • Cost Structure

What is the business’ major cost?
Which key activities/resources are most expensive?

Try to write about money spent on all elements which are related to business.

  • Revenue Streams

How does the business earn revenue from the value propositions?  Think of all sources of revenue from all segments of your business.

After writing this post I felt motivated and then I tweeted. 

I hope, I have thoroughly explained the business canvas model to you. If you still have queries related to the business canvas model you can leave a comment. I will surely respond to it. DO SHARE THIS ARTICLE with your friends or family who are engaged in any startup or business. 

To your Success

-Rajat Negi, Logging Out 🤗

IMG 1433 1 225x300 - Introduction : Business Model

Rajat Negi

Compound Investor (Who loves to talk to stock)
Digital Marketer (Who loves to make brands)

5 thoughts on “Introduction : Business Model”

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