A business model is simply the answer to four general questions about your business project:
- What do we offer?
- How do we make it?
- How do we sell it?
- How do we make money?
Elements of a business model
Of course it is a bit more complicated than that, and each of the four main questions has a number of subquestions:
Product – What do we sell?
- Customer value – Why do customers buy?
- Positioning – How do we want our customers to percieve out offer compared to alternatives?
- Price level – How should we price it compared to alternatives?
- Experience Cycle – When in the purchasing and consumption process to we offer unique experiences?
Sales – How do we sell it?
- Customers – Who are our customers?
- Channels – How do we reach our customers?
- Customer Relation – How do we GET, SERVE, KEEP and GROW our customer relationships?
Organisation – How do we make it?
- Activities – What do we do in our business?
- Resources – What to we have – or need to acquire – to do it?
- Partnerships – How to we cooperate with partners?