Entrepreneurship
has been one of the avenues for liberating global economy. Most youths have
embraced the concept of entrepreneurship but its benefit is less felt as a
result of inability to realize the motive of profit maximization.
Without
proper business modeling, most start-ups will not stand longer even if the
owners push chunk of capital into them. Business model explains how company
generate revenue and retain its loyal customers. It is a concept that looks at
how the forces within your business setup can drive money to you.
The
following are basic elements in business model that determines how a start-up
or full company can generate revenue.
Ø Customer Segments: every start-up needs to be able to
list and define the niches it serves
Ø Value Preposition: this look at the uniqueness of your
product or service. It talks about additional value you create to solve a
specific problem, and why customers have to make payment for your product other
than that of your competitors.
Ø Channel: every start-up needs to look out
for ways to reach their customer through proper communication, distribution,
and sale channels.
Ø Customer Relationship: describes the things to do in other
to maintain an ongoing relationship with each of market segment you serve.
Ø Key Resources: you must identify the appropriate
resources to run the business.
Ø Key Partners: You can include the vendors and
partners needed to run the business.
Ø Cost Structure: start-ups need to include all
moneys (expenditure) spent or needed to run this business.
I believe
these information has been helpful to you. Stay connected with us for more
updates on business development and entrepreneurship.
0 Comments