The term “business model” entered the popular vocabulary back in the days of the Internet boom, when hardly a day went by without a dotcom announcing a novel money-making scheme. The phase of change in the global business environment Is unusual and unprecedented, which forces organizations to challenge many of the assumptions about how they operate.
In this era of further advanced consumers and the increasingly global and market-oriented economy, strong supervisory requirements and technological advancements, there is a critical need to create adaptable, sustainable, reliable and profitable business models. The current aspects of the business models of our generation should improve in accordance with the changing global trend and the emerging Global Businesses need to grasp what is forcing this change, what are some of the key concerns and opportunities for the growth and how to achieve success smarter and quicker.
The overwhelming need of a lucid and strategic vision from the administration, participation of staffs fully in the business and through this, the creation of a habitat that is comfortable with changing world is a matter of first priority. However, in this rapid change, Investors and Business Leaders also need to manage the accompanying risks as well.
An efficient and cost-effective operation is another matter of concern. Nowadays Cost structures have undergone radical changes in the past years. But it is not just a distraction with keeping costs down that is important for businesses over the upcoming years, it should be a low cost combined method with the more strategic and sustainable way in achieving competitive advantage.
A company’s Business Model should be the personal blueprint of that company and its operations. There is no other equation for success. After analyzing the necessary need of an effective Business Model and advanced strategies are popping out from the three questions of greater importance.
- How will organizations bring in revenue growth in an increasingly competitive and dynamic business environment?
- How will they upgrade their cost structures while offering more value to their customers?
- How must they position themselves in the Global Market to differentiate their organizations and create a sustainable competitive advantage?
A great Business which aims to accumulate maximum revenue by operating and engaging by touching all the aspects of a well-managed firm with its full potential must take the factors into account. If your firm lacks these three factors, then you should reconsider your future as an investor. An eagle-eyed Businessman should always cross-check these things given below.
Profitability: No Business is created to lose money; consequently, it must be profitable. If it’s a dead resource, then you are wasting your time and money.
Expandability: Being able to create one now, another tomorrow and so on and so forth until you have a model that takes over the market. Think to yourself whether you can restructure your firm when spontaneous changes and needs hit like a storm.
Restructurability: Being able to standardize them to be able to rebuild and replicate them anywhere, for example, franchise products. When you release a product or service, it must feature these three elements that should ensure its market success: Enticing, Reliable and Profitable.
Now take a look at some mandatory elements and major tools which would help to develop a well structured Business Model.
1. IDENTIFYING THE SPECIFIC/TARGET AUDIENCE
When creating a business model, you should always think of the people or the buyers who are supposed to buy the product or service which you are going to provide them. The very thought from the manufacturer’s angle to the consumer/buyers side is vital. Targeting a wide crowd won’t bring you any development unless you are able to find out the specific audience and their and their growing interest to buy your product. You should only spend your money on this guaranteed revenue-enhancing way.
2. ENSURE THAT YOUR PRODUCT IS CREDIBLE, DESIRABLE AND IT’S SATISFYING THE CONSUMERS
As we discussed earlier, we should always think from the customer’s angle. Try to ensure that if your product is satisfying the requirement of the consumer and meeting up to standards. If your product/service is able to relieve the pain of the consumer, then you can gain from that pain by transforming as a good service provider or as an efficient manufacturer.
3. TEST YOUR SUPPORTING CHANNELS AND MARKETING STRATEGIES
Just like production/manufacture, the right marketing and finding the most accurate and reliable channels are also essential to lift up your firm into the Global level and this will also help you to Develop at Global level by adopting the right Business Model. In this area, you need to concentrate more on your Business Model and target it towards the selected audience or a focus group. In this section, you must incorporate all components of your pricing, marketing, distribution and maintenance. Here again, you’ll get the chance to make shafts for nearly at no cost.
4. Focus on getting customer feedback and recommendations
You must give serious consideration to customer satisfaction and you should patch up the grey areas regarding your service/product and resolve the problems in the light of the feedback and suggestions you receive. If you don’t do so, your business will probably not scale at the rate you projected.
5. Always keep a great bond with other enterprise experts and investors
An advisory board of external experts with experience in your field can give you the honest feedback you need, as well as connections for building up distribution and sales channels. It’s also worthy to talk to potential investors for their opinions, even if you are bootstrapping the effort.
6. Maintain a market position
A better Business Model will incorporate ideas and plans to make the Business dynamic and improve its market position. So you have to consider all the growth possibilities and obvious threats you could be facing and combine a long-term product roadmap in order to create a better Business Model. Never try to depend on just a few consumers for most of your product. You also would not want almost the whole distribution to be regulated by your competition or your competitors to be better funded than you. Technology is swiftly emerging making new product development risky but you would not want to be left behind too. You have to consider all such factors and decide how you plan to maintain and continuously improve your growth sustainability.
7. Create A Futuristic Funding Strategy that will help your firm Last Longer and grow better
The long-term sustainability of your firm depends upon financing your enterprise. By proper funding, your company can be bootstrapped yet it will require a consistent and steady flow of funds to sustain itself. Personnel expenses, functioning capital and various other expenses are expected to be shouldered by any company, not just a start-up. Start-ups need even more funding as most of them have to pay significantly more on customer acquisition and maintenance than established enterprises. You would not want your wealth and revenue to be handled this way. Ideally, your initial funding can increase your trades manifold so that external funding is no longer required if you are able to do it on your own.