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.