Today, we will continue with the twelfth day in our challenge to improve your business in 77 days. We are in the business planning improvements part in this challenge, and we already work on improvement of previous business planning experience, forecasting and knowledge.
Now it is time to continue with the business model because your business planning process in large will be based on it, or оn the basic relationship between the different parts of your business model.
It is the fundamental part where you can find possible places for improvements.
Your business model is something that can easily in one picture explain how your company creates, distributes and communicates a value with your customers. The value is the basic premise of each business. It is something that your company offer on the market. You can create and have the values, but, without proper distribution and communication of that values, you cannot expect the success of the business. If you not communicate values, your potential buyers will not know about their existence.
It can be a simple picture with the diagram that will connect different business elements as your values, 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. Without it, they cannot produce proper strategy or business plan that will support that strategy. Because of that this is important part of your improvements process. Better business model means better business plan and better future for your company.
- Is your business model simple, something that can clearly communicate each of your business activity?
- Is your business model specific, something that answers all questions connected with your company?
- Does your business model describe the value that you offer?
- Does your value is still something that your customers want, need or desire?
- What is the perception of your buyers for your value? Can you improve something for better perception?
- Can you improve something, or add something into the value to improve your overall offering?
- What is your target market?
- What are your ideal customers?
- Do you know their needs, problems, desires?
- Are their needs the same or there are some changes in the place?
- What will be in the future? Do the same customers segment will be adequate for your company?
- Are there on the market different segments that can expand your current customer segments?
- Can your company satisfy some other segments on the market that was not satisfied yet?
- How your business makes money? Think about prices, pricing models, pricing strategies… Can you improve something?
- What are the biggest revenue streams for your company? Can you improve them?
- Can you add some additional revenue streams for your business?
- How you communicate and distribute your value to the customers?
- What think your customers about your communication and distribution channels?
- Can you improve your communications and distribution channels?
- What are your key resources?
- What about efficiency and effectiveness of your resources?
- Can you improve the efficiency and effectiveness of your resources?
- Do you really need all of that resources?
- How your resources are used in adding value to your customers?
- What about the relationship with your customers? Can you improve something about that?
- What about the costs? Can you improve something about your cost structures?