Could a stranger walk into your office and run your business? They could if you have a business model that defines every step of your business process. Create one using a simple business template that provides real business processes.
Start with a summary of what you do each business season.
Sell products or services
Define your product or services within a pictorial scale, including price, value, and description of what each entails. Give your products names that identify, define and value the individual product or service, and then put them in your product or service journal.
Define niche market
Identify your buyers. Who are they? How much will they spend? How often will they buy? Will they come back for more product? Are you going to meet them in person or online? Will your buyers come to you or will you take your sales to them?
Select payment options
How will you be paid for the products and services? What financial plans will be available? Decide how you will accept payment and whether your accounting program will be cash or accrual. Will you send invoices, statements, and other billing options? How will you communicate the collections?
How the product is delivered
One of my favorite sections of the business model is the products section. We can define our product, decide how it is produced and how to deliver our products. Some products are easy to understand, others require a bit of finesse.
I specifically recall a product that included ordering a mass production from an auto supply company, ordering boxes, and then spending hours inserting products into boxes and then shipping them through the USPS at the end of each day. Tagged because my hardest problem. With each order I downloaded labels for shipment. After a particularly tiring week of shipping hundreds of boxes, my daughter found a “shipper” who handled all the shipping.
We simplified our business model, increased our profits, and cut a lot of work out of the shipping process.
The business model offers you a selection of methods to deliver not just one product, but multiple products. You can send some, while you personally send others, and some can even be transferred digitally. The key is to have a plan and to know what happens to each product bundle.
Service delivery options
Another key component of your business is the overall development and delivery of services relevant to the end game of business transactions. Every business has a certain number of services, but determining how they are performed, delivered, and completed is part of the overall business model.
Functional business models It can be as comprehensive or circumspect as you like, but for more automated systems, or for systems that are operated by non-proprietary entities, the more comprehensive the Business Model, the easier it will be to hire assistants to complete the job. .
Creatively put as much effort into your business model as you hope to get out of it. The better it is written, the more effective it will be.
Scorecards and a how-to book can be important to your business model. These offer simplified business methods and distinctive directions and procedures for each business segment.
If your business model needs attention, you may want to contact a consultant.
