Defining your business model

Contents

Join our newsletter

Intro 

It is now 2024, with a new decade beginning and over hundreds of new small businesses starting, here at Clear Bounce, we give you the tools necessary to get your digital market ready for action. Nowadays, there are various ways of advertising your business, whether it be conventionally with print (newspaper ads, billboards, magazines) or digitally with more analytics and statistics to show that you are going in the right direction. Within our blog, we will show you how to build the framework of creating a successful e-business, but also educate you on the subtle nuances of digital marketing, its costs, and it’s returns. 

Your Business Model

We know starting a new business is a very arduous endeavor. However, there are many ways as a business owner that you can map out every exact detail in what it takes to start your burgeoning business. For example, this business model (hyperlink here) is the structure of what you should be thinking about, and what you should implement to get potential customers/clients.

The model is self-explanatory, but we would like to break down each section with more detail.

  • Key Partners are the relationships that you have with other businesses, governmental resources, or non-consumer entities that help your business. These can be the relationships that your company has with your suppliers, your manufacturers and or business partners, etc.
  • Key Activities describe the most important things a company must do to create and offer value, reach markets, maintain Customer Relationships, and earn revenue. Other key activities include hiring the right talent, business development, skill training and customer service.
  • Key Resources are the building blocks described as the most important assets needed to make your business model work. Every business model requires them, and it is only through these resources that companies generate value and revenue. Key resources can be physical, financial, intellectual, or human.
  • A Value Proposition is a statement that answers the ‘why’ someone should do business with you. It should convince a potential customer why your service or product will be of more value to them than similar offerings from your competition.
  • Customer relationships are the relationships that a business has with its customers and the way in which it treats them.
  • Customer segmentation is the process of dividing customers into groups based on common characteristics so companies can market to each group effectively and appropriately.
  • Channels: How or in which way will your customers be reached? Channels can be thought of as “streams” in which your customers can be contacted through.
  • Cost structure refers to the types and relative proportions of fixed and variable costs that a business incurs. The concept can be defined in smaller units, such as by product, service, product line, customer, division, or geographic region.
  • A company’s Revenue Stream is the amount of money that it receives from selling a particular product or service.

The model also comes pre-loaded with questions within the boxes for you to fill out. The more detailed and clear your answers are, the simpler it will be to navigate your road into creating a successful business. These questions can help you build the foundation of your business, whether it be a brick and mortar shop or within the digital marketspace. Take some time to speak with your key partners and make detailed answers to each of these questions.