Business Model

How do you write a business model?

A business model is a company’s roadmap to success. Lets take a look at the important points included in a business model.

• Executive summary: Give a short brief about your company and its business goals and objectives.
• Market analysis: Describe your customer, your competitors, your strengths, weaknesses, etc.
• Products: Give a brief description of your product/ services and what benefits they can provide your customers.
• Sales forecast; Mention the game plan of how you will acquire the necessary sales.
• Financial Projections: Showcase your funding request with your company's financial projections.
• Team Capability: Showcase your team, which can help you accomplish your business plan.

How to create a business model canvas template?

To create a business model template,

Step 1: Define the purpose of your business.

Step 2: Understand your customers and their value propositions.

Step 3: Document your strategy to establish relationships with customers.

Step 4: Describe the key resources, key partners, and key activities.

Step 5: Define your cost structure and revenue streams.

Step 6: Keep the canvas legible and maintain clarity.

Step 7: Narrate your business plan as a story through your canvas.

Step 8: Verify your business model canvas through a small pilot.

Step 9: Design new versions once your verification leads you to incorporate different ideas.

What are the nine parts of business model?

There are 9 parts in a business model:

• Key partners: Mention the relationships you have with other businesses or your company's relationships with your suppliers, manufacturers, etc.
• Key activities: Define the activities that your business engages in to earn a profit.
• Key resources: Describe the most critical resources required to make a business model work.
• Value Propositions: Highlight the benefits that your products offer its customers.
• Customer relationships: Define the nature of relationship with customers.
• Cost structure: Showcase the structure of the costs that the business requires through its operations.
• Revenue stream: Mention the sources of revenue of a company or organization.
• Customer segments: Define the groups of people or organizations you aim to reach or serve. Every company needs profitable customers to sustain.
• Channels: Mention the touchpoints through which an organization communicates with its customers and, as such, plays a massive role in defining the customer experience.

Check out our business model canvas template for a completely editable layout of the framework.

What are the types of business model?

There are 4 types of traditional E-commerce business models.

• B2C- Business to consumer. B2C type of business model sells directly to the end-user. i.e., The customer.
• B2B- Business to business. B2B type of business model sells it’s products or services to another business.
• C2B- Consumer to Business. C2B type of business model lets individuals sell their products and services to the company.
• C2C- Consumer to consumer. C2C type of business model allows customers to trade with each other, mostly in an online environment.