Developing a new creative business model is something fascinating; since it takes a lot of times to give a shape in all those ideas that have been crouching in your mind. Creating a business model on a whiteboard will not make that reality until you go for implementing it. Now, here is the most important part, you have to decide your own whether your model is on the right track or not.
For my business work, I am fortunate enough to get a chance to educated myself and experiment with all those creative business ideas for over the year and I have discovered something very interesting, there is a series of factors that we must have to consider before developing a good business model to survive in the market.
Is your business model solving a real need?
It may seem like crazy but in my opinion, a real need is a key to developing a productive business model. For example “you need to travel long distance quickly, so you need a car to solve your problem”. Here you can clearly see how a definite need that influences a consumer to look for the immediate solution.
Unfortunately, we often try to create a creative business model in our intuition based on virtual market demand without understanding the customer’s real need. Before developing a perfect business model, you have to get a proper survey in which you will perfectly realize the consumer actual needs and obviously that will help you developing your best business ideas.
What makes your business model different than others?
We always try to do something different than others. Well, that’s our natural habituate and often we forget that we have to deliver better instead just different. One thing you have to keep in mind that your products and services are your whole business model because at the end they will generate the revenue to you. So it will be wise to have a clear idea about the potential customers and their needs and most importantly how your competitors dealing with them. It’s good to be different than your competitors but at the same time, it has to meet the customers need as well. As I said before, if there is not competition, there will be a compromise with quality and ultimately customer will have to pay the price.
How do you attract your customers?
It is the most important aspect of a perfect business model since we only concentrate on making the great products instead how to attract the customers by introducing them to the products. we used to hear a lot if you make the great products, the products itself will bring its customer. But despite the fact with my experience, I don’t agree with that for the following two reasons:
- Your product may be great for you but your customers might think of other ways.
- Today it’s very hard to get a positive attraction from customers, so to attract them you have to apply some other technique besides your products.
So you have to be very serious in this matter and I will tell you to adopt today’s technologies to promote your business. Social networking media is a key path that can take you toward the consumers by putting some unique advertising on your products. Remember promoting your products will cost you some money and you have to consider it as a part of your business model.
Do you have a specific income time line for your business model?
It is another very important point that takes our little attention when we developing the business model is its income time line. You have to consider dozens of ways that will generate money to your business model; you cannot deny that strategy because it’s very important in any business plan. Your business model will not effectively complete if you don’t line up the money making ways.
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A business model that starts with many income streams is indicated that you don’t have any clear idea on how to make money. So you must have to put the money making target for your business model to achieve with a certain period of time.
In addition, we always like to consider the money that we are going to earn, but always forget how much money it will take to earn them. If you recall, I said that on my previous point and always keep in mind, if you have to pay more money to attract your customer than the return you get from them, your business is in trouble and not going to survive.
How will you deal with growth push?
Finally, although the design phase may be in far away but from now on, you have to clearly understand how the growth engine of your business model will work out. It will mostly depend on something that has profound implications in the decisions making period that you have to take anyway regarding the product strategy (For example, it has nothing to do with a business model that aims its growth on viral strategies than the one with a sticky growth engine).
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And it is very important because if you are focusing on the wrong factor (for example, if you try to develop a “sticky” model you have to pay attention to retention and activation, and perhaps you will not focus so much on the acquisition) that takes a lot of money from you In something Irrelevant to your model ultimately damage your business plan.
The worst things that a beginner can commit when developing his business model that has squandered him all resources on making something that no one will buy.
End up with influential tips:
In my opinion, the key part of your business model is not only to focus on the previous points that I have discussed (keep researching the strategies), are obviously the key to designing a good business model but I will recommend you to leave the blackboard aside and get into the market as soon as possible to validating them with the way it work in the real world. Finally, if you have a creative business model that mostly focus on today’s need; your business model will definitely survive in long run battle.