Startup Business Modelling

by Basi M. Consultant

Business Models help determine desirability, feasibility and viability of the startup by determining revenue sources, profitability, costs, systems, etc.

Recommended Features

Business Model Mapping Matrix
Avoiding Business Model mistakes
Financials for Business Models
The process for designing effective Business Models
Designing a Business Model

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Review on Startup Business Modelling

Understanding the problem you are solving for your customers is a critical step in ensuring potential growth of your business. Customers need to want what you are selling and your product needs to solve a real problem (important and urgent). This is the role played by Value Propositions. But, ensuring that your product fits the needs of the market (Value Proposition) is only one part of starting or growing a successful business. The other key ingredient is figuring out how your business is going to make money. This is where your business model comes into play.
A Business Model is a plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products, and details of financing. A business model is a blueprint for small business and start-up success your business roadmap for success.

Before you start your small business which has the potential to be a start-up and grow to be a giant enterprise, you need to create a business model. A Business Model is not a business plan. However, there can never be an effective business planning without a great Business Model and there can never be an effective Business Model without a great Value Proposition.
Properly crafted, designed and modelled businesses warrant desirability, feasibility and viability of the business project resulting in business success. Great Business Models are crucial for the profitability, success and sustainability of any business organization. Business Models impact three areas of the business:
1. Everything it takes to make something - design, raw materials, stock, labour, and so on (planning).
2. Everything it takes to sell that thing marketing and promotions, distribution (channels), delivering a service, and processing the sale (systems and processes).
3. How and what the customer pays - pricing strategy, payment methods, payment timing, and so on (revenue streams).
Business Models force entrepreneurs to be objective about their business ideas

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