Business model as a starting point for all businesses, presents a first thing after an initial idea that you must to make. It is one of the most important business elements, because many other things as a business strategy, business plan or action steps will be based on your model.
It can be a simple picture with the diagram that will connect different business elements as your value, distribution of that value, communication and distribution channels, customers, competitors, stakeholders…
It also can be on a piece of paper with several words or sentences that narrative describe the same connection from above.
I found that many businesses suffer because of the lack of a clearly defined business model, because without it, they cannot produce proper strategy or business plan that will support that strategy.
In the video bellow is Guy Kawasaki that explains three recommendations about business model:
- Be specific!
- Keep it simple!
- Ask women!