Breakthrough: Why business models matter
What is in a business model?
Do you have a business model, and, importantly, are you using it in the right way?
A business model is the blueprint of any business. In its simplest form it will describe how the business makes money.
Your business model should reflect on various aspects of a business to showcase its money-making potential, such as: how you plan to add customer value; how you will market to your customers; who your competitors are and what you have that they don’t; and associated the costs and revenue streams to deliver your business.
Debs Horner, Business Development Manager and lead on the Breakthrough workshop, explains:
We kick off our four-part Breakthrough Workshop by helping you create a Business Model for your business using a Business Model Canvas. This then becomes a working document throughout the series, and something you can take away and put into practice.
What are the benefits of a Business Model Canvas?
Understand how your business works
Take a step back and understand how your whole business operates centre stage – everything customers can see – to backstage – everything you need to do to deliver your product or service to the customer. Not forgetting the financials that are the safety net, holding it up from below. Always question, how could I do it better?
Find out who your customers are
Truly identify your customer segments, and using Breakthrough’s Business Model Canvas to walk in your customer’s shoes – what experience are they getting and how can you improve this?
How you reach your customers
If you know your customers, are you using the right channels to reach out to them? How do you then maintain that relationship with them that keeps them coming back and repeat purchasing, can you lock them in? Much easier to sell to an existing customer than constantly find new ones to sell to!
Plan the resources you need
Identify the key activities and resources your business needs to put your product or service in front of your customers. Without them, the business can fall down!
Understand how to set yourself apart from competitors
If you know your business model, map out your competitors: is there an edge you can develop that sets you apart? It doesn’t have to be a seismic change, often it’s the little differences that count.
Understand how your business makes money
What is your commercial revenue model? Is it direct sales, subscription based, franchise… there are many more, do you have multiple? A Business Model Canvas can help you develop these.