Skip to main content

Business Model

 

BUSINESS MODEL: 

Business model refers to as a company mechanism for generating profit. It identifies the products or services the business wants to sell, it identifies target market and any anticipated expenses.


In Business model, one plans the appropriate mechanism to generate profit. Picture this scenario; A Business wants to sell  products and services for older people, then a business decides to use Instagram platform simply because it mostly used now days. But according to statistics, Instagram platform is mostly used by young generations. Instead of using Instagram platform, then a business should use TV shows to sell its products and services because older people love TV shows.

When you have a business model, mistakes like this is noticed at a very starting moment.

Also Business model is company’s or business core strategy for profitably doing business. Business models have the major levels which are pricing and costs. As Business model states itself, it shows the target market, customers and channels. Therefore, it will be easy for a company to design price and costs in a business which will be fair and profitably for both a company and customers.

Business model has different components, but the primary component of business model is Value proposition which means that, a description of the products or services that a company offers and why they are desirable to customers or clients. This ideally means; differentiating the products or services a company or business offers from its competitors.

Business model will help a company to get investors simply because investors always wants to see how business makes money. And from the Business model, investors can make a better sense of financial data.

Things to consider in Business model

When prepare a business model, do not underestimate the costs of funding the business until it becomes profitably. Many companies believe in counting cost to the introduction of the products, but it is not enough; instead of; costs plan has to keep the business running until its revenue exceed its expenses.

The best way to understand Business Model is by using a Business Model Canvas.

Note: Good business model needs the help of Business analyst.

 

 

Comments

Post a Comment

Popular posts from this blog

Customer Service Analysis

  Customer Service Analysis:   Customer Service Analysis (CSA) is a process of splitting apart and understanding each part of services provided to a customer. Not only that but also Customer Service Analysis is a major mean of good customer service report. This means that, a business or company study careful all the services providing to the clients or customers and see if they can take a business from one level to another. Customer service is currently defined as a set of care which a customer should be given. But in business analysis level, Customer service refers to as everything which can make a customer to come back again and again. So, there are some key parts to follow in Customer Service Analysis. Understand type of customers you are serving Customers are segmented in many groups such age, gender, public status, quality and quantity. All these groups depending on the type of products you are selling. So, make sure that you understand most of your customers ...
Post a Comment
Read more

KPIs IN BUSINESS

  KPIs IN BUSINESS:   KPI stands for Key Performance Indicator which means a quantifiable measure of performance over time for a specific objective. KPIs are not Business metrics. KPIs are the key target you should track to make the most to make the impact on your strategic business outcomes. Therefore, KPIs support your business strategies to reach   your business goals outcomes and help your team to focus on what is important. Picture this; A business is aiming at acquiring new customers of older age for their new products. Therefore, a business conducts a promotion discount to each product purchased by customer of older age. There, KPI is customer of older age. Are the KPIs important ? Yes. You need KPIs in your business to support team on achieving the core business goals within time and budget. Some of benefits KPIs can offer your business; Keep your team aligned When measuring any project success in your business; KPIs keep team moving in one direction...
Post a Comment
Read more

Business Requirements Vs Functional Requirements

  Business Requirements Vs Functional Requirements:   Everything done in business is aiming at making the business more profitable. But the issue is not having many projects and activities in a business, and instead of; a business has to conduct only the projects and activities that it actually needs.   In a science of business management known as Business Intelligence (BI); everything is under control. However, there are some concepts are still confusing in this scope. Business Requirements and Functional Requirements are still confusing simply because they are very closely related to each other but they are not actually the same. “Our customers will get a free delivery for each purchase” and “We need to offer our customers a free delivery”. These two statements look alike but also different. The first statement shows the implementation or action while second statement shows the suggestion or opinion. What is Business requirements ? It is what define or describ...
Post a Comment
Read more