When a company raises the question of how to satisfy its customers’ needs, we are faced with a business model . And if an entrepreneur intends to put into practice a business project, he must clarify what he wants to do, that is, what his business model will be.
Any business model is a general approach that seeks to answer a series of questions:
1) Who will be the customer of my business?
2) What benefits will the product or service I sell bring to the customer?
3) How do I differentiate myself from my competitors?
4) How will I sell my products?
5) What services will my customers receive before, during and after purchase?
6) Where will I get money to establish the business?
7) What resources do I need to make the business work?
The specific answers to these questions or their similar forms form a business model. Consequently, a business model serves to analyze a global strategy and to anticipate possible setbacks.
Tips for putting a good business model into practice
A viable business proposal is one that provides a useful response to a consumer’s need . For this to be feasible, it is important to design a business model that includes a number of key elements:
1) differentiate from competitors and create alternative solutions to traditional ones;
2) create marketing strategies to attract customers;
3) precisely define the market segment you want to conquer.
- – The internet auction pages bid for a product and the final buyer is the one who pays the highest value for the auctioned product;
- – Enrollment models where a user periodically pays a fee for a service (eg insurance companies are based on this system ).
- – Platforms that unite buyers and sellers and are known as marketplace;
- – The franchising system, from which a percentage of the benefits to the owner of a brand is paid;
- – Internet sales known as flash self, through an internet portal, propose sales in a short period of time and with great offers;
- – Internet comparators allow users to know the best prices on a particular sector (hotels, insurance, travel, etc.).