Anyone who has a business idea and wants to present it to someone, such as an investor or a fund interested in a startup, needs a business model to show. It is the tool used to give concrete form to an idea and a guide to achieve it in the most repeatable, scalable and profitable way possible.
What is a business model?
In the words of Swiss scholar Alexander Osterwalder, a business model is a conceptual tool used to describe how a company creates, distributes and captures value . It can be defined, then, as the set of organizational practices and strategic solutions through which competitive advantage is acquired in the market, and it must be flexible and dynamic. Although this is the most famous definition, to date there is no universally accepted and shared one.
What everyone agrees on, however, is that a company's business model should illustrate its value proposition, clearly identifying the target audience , the main suppliers, the characteristics of the production process it wants to carry out, its distribution, promotion and all the other primary aspects of the business. Understanding how and uruguay whatsapp data why to carry out a business model is one of the key points of academic courses aimed at business administration such as an Executive MBA or a Global MBA.
What is a business model for?
The business model helps to develop the initial idea and make it grow, to find staff, to study a business strategy to differentiate oneself, to optimize processes, to not lose clients and to reach new ones. But it mainly serves to clarify and give depth to an idea , precisely because it will be put in writing and analyzed in detail.
All this in a flexible and extremely dynamic perspective . It would be unthinkable, in fact, to believe that a business model, however successful it may be, can be so forever. That is why innovation and updating must take place when, for example, new competitors or new customer needs arise or when the profit margins of the product or service begin to shrink drastically.
How to make a business model?
Over time, different tools have emerged to help entrepreneurs and startups represent their value proposition and make a business model. Among the different options and methods, the most famous is undoubtedly the Osterwalder and Pigneur Canvas . It is a simplified graphic representation of the main activities on which a company's model is based and allows to highlight the logic through which it is intended to create, distribute and capture value.
The Canvas is a visual and organizational technique, widely used in planning, which is divided into nine aspects divided into two parts: on the left side the costs and on the right side the income. It consists of an empty board in which ideas can be inserted according to these criteria:
The time has come to decide. Your future, for the first time, is in your hands and you have the opportunity to train yourself to be who you want to be.