It’s inevitable that every business will eventually face challenges associated with growth and decline. Most fail to maximize potential, sustain growth or turnaround a decline because their business model is either not understood, relevant or sustainable. Building a business or marketing plan without a solid business model is foolish. It’s like building a house without a solid foundation — it may be fine in the short term, but it can quickly crumble. This article will provide some tips and insight for effective business model development.
Better Business Model Development
A solid business model is built on critical foundational pillars that support the delivery of your IDeal Value Proposition and Offerings. Value propositions and offerings are the collection of products and services you need to deliver in order to meet the needs of your customers. They should distinguish you from your competitors. The four pillars are:
- Key Activities
- Key Resources
- Key Suppliers & Partners
- IDeal Value Proposition & Offerings
Understanding your IDeal customers
To build and sustain an effective business model, your company must identify its IDeal customers. Various segments of customers can be linked based on their different needs, personas and attributes. To learn more about finding IDeal customers, read this post. Once you know who your IDeal customers are, you can deliver your value propositions through different channels. When you have effective channels in place to distribute your company’s value propositions, you are able to grow faster, more efficiently and more cost-effectively. To ensure the survival and continued growth of the business, you must identify the type of relationship you want to create with your customer segments.
Cost structure & revenue streams
Analyze the consequences of eliminating, reducing, creating and maintaining the infrastructure you determine is best for your short-term and long-term goals. In addition, analyze your pricing models, terms and methods of payment.
Need Help Developing Your Business Model?
With something as important as your business model, you want to be sure the decisions you are making are the right ones. If you need assistance, reach out to an experienced marketing agency for help. At Adventure, our Crew of Experts possess relevant certifications and have experience with the following:
- Balance Scorecard Strategy Development & Implementation — Master Practitioner, Balanced Scorecard Institute
- Blue Ocean Strategy — Blue Ocean Strategy Simulation Expert, BOSS, StratX
- Multichannel Marketing Communications: Creating Direct, Interactive and Measurable Media Strategies — DePaul University and CADM Certification Program
- Business Model Generation; Business Model Canvassing
- The Value-Focused Organization Pyramid Training and Execution
- “Thrive” Facilitation
Our value-focused business model development methods include:
- IDeal™ Customer Discovery
- IDeal Value Proposition Development and Validation
- Infrastructure Analysis and Review
- Revenue Stream and Cost Structure Analysis & Review
- Business Model Generation Brainstorming for IDeal Customer Segments and IDeal Prospective Customer Segments
To learn more, contact us.