Some Necessary Steps in Building a Company Business Model
Teknoto.Net - In a business, an entrepreneur is not only required to understand what products are needed by customers. But also must determine what kind of business model will be used in his business.
The business model or Business model is different from the business plan. In a business plan, someone is more concerned with the product to be created, analyzing whether the product is needed by the customer or not.
While in the business model, someone will focus on how to generate profits from the products created. Which is not only in the short term but also in the long term.
In simple terms, a business model can be defined as a process by which a company can create value from a product and benefit from that value on an ongoing basis.
Creating a business model, of course, is not as simple as imagined. It takes thinking, in-depth analysis, and also making the right decisions so that the company can earn profits regularly. The following are the steps needed to build a company business, including:
1. Determine the Target Market
In business, a broad target market does not guarantee that the business will sell well in the market. On the other hand, businesses that have a specific target market often have higher sales and loyal customers.
At this point, you should be able to determine, for example, to whom the product will be sold, whether it is female/male or both. What is the target buyer's age, demographics, activities, hobbies, personas, or other characteristics?
Then, analyze what problems they face, their complaints, their desires for the products they are currently using. And create a solution for each of these problems in your new product.
2. Define Business Process
Know what business activities will be carried out in your business, and what processes will be carried out? Are you also going to provide delivery services or not. All of the courses must be determined based on special considerations.
3. Knowing Key Resources
Next, you have to make a list of what resources are needed to run a business? Such as websites, social media, warehouses, customer databases, capital to naming copyrights.
4. Determine Business Partners
No business can run alone, all require synergy with other parties as supporters. When running a business, you also have to determine, for example, who is the supplier of the goods you are going to sell, which agency will you use for advertising media.
5. Develop a Strong Value Proposition
This value proposition is closely related to the strength of your product. What is the difference between your product and similar products, so that it looks superior? Whether from the properties, ingredients, packaging, taste variations. In this case, you must have a team that has innovation and adapts to the times.
6. Create a Demand Generation Strategy
At this point, you have to make a strategy like what can make the product sell well at launch. Whether using digital advertising, newspaper ads, or for example placing billboards on the main streets of the city.
7. Create Space To Innovate
Sometimes, what we plan is not what we expected. No product is perfect when it first hits the market. All of them certainly have weaknesses that the team must immediately fix.
In addition, create a climate for innovation. How the team responds to any feedback and trends.
So, those were some of the steps needed to create a company business model, and I hope this article is useful.