Will Your Business Model Make Or Break Your Business Venture?

Are you planning to launch your very own fashion brand or display your passion to the world? If yes, then you are on the path of converting your dream into a reality. However, steering the wheels of reality is not as easy swaying a magic wand in the dreamland. You probably have a fantastic innovative business idea, but the success or failure of your business will depend on one thing – the Business Model.

Read here about Crypto Code

What is a Business Model?

It is a thorough fully-fledged plan for the smooth running and successful operation of any business. A business model should identify three important things, in addition to few relevant others.

  1. The product, its source & its specifications

  2. The sources of income & financing

  3. The target audience or customer base

What should a business not do post its launch?

  1. Never be carried away by the profit & loss statements and start diverting your initial business model to vaguer areas. Always stick to the innovation and expertise.

  2. Do not think of redesigning or remodeling your business model, rather focus on fixing the issues.

  3. Do not think of hiring for cheap, as the most important ingredient for the success of a start-up is its staff.

  4. Do not ignore criteria for location and space because these hidden factors will eventually contribute to the success of the business in the long-term.

  5. Never compromise on the relationships that your business maintains with the customers.

What can create a successful business model?

  1. Launch your product at the right time to the right target audience. For example, introducing waterproof watches during monsoon is a good idea.

  2. Price your products right. Never price them high, as you will find it difficult to win the market. Similarly, never price is too low, as you will eventually be out-run.

  3. Always carry out a short-term planning for the next 5 years and a long-term planning for the next ten years to identify areas of improvement and evolvement. In addition, plan for product differentiation, minor or major, from time to time to engage new customers and retain existing customer base.

  4. Take feedbacks to ensure whether your product meets customer expectations and is in line with the business model as it was originally proposed for.

  5. It is wise to do a test run or a pilot phase launch to determine success or make modifications.

Thus, it is now clear why something as basic as a Business Model could either break or make your start-up dream. You may choose from the several different business models and frameworks that strategists have discovered. However, whatever you decide you need to ensure that your business model has all the workings of a successful business venture.

Comments are closed.

Proudly powered by WordPress
Theme: Esquire by Matthew Buchanan.