Before starting any business, we must bear in mind that our idea or action plan must be previously studied so that it gives the best result, this is cause, due to different factors, a greater range of success may result and, little by little, the evolution of the business model that we elaborate will be of greater benefit.
Here are 5 ideal tips for turning our idea into the business model that our company will represent
- Analyze your competition’s business models. A good exercise that you can do is to take the Business Model Generation Canvas and try to identify each of the elements of the business models of the competition or of companies that you admire, so you can better understand their approach and learn from them.
- Be flexible in the process. Explore all the possible options in your business model. Ask yourself things like: What happens if we bring this value proposition to a new customer segment? How else could we generate income with this same product? What other value propositions can we offer to our customer segment? Etc. Remember that, in this phase of the process, you´re looking for an approach that allows you to compete in the market, so you must be open to analyzing all the possibilities to create value. In addition, every business must be constantly reinventing itself, so make sure that flexibility is one of the pillars on which you build your company.
- Focus on creating value. All the strategic decisions of your business model must be oriented towards creating value for the customer. Differentiation alone is not a competitive advantage, make sure your differentials add value to the customer’s life.
- Stay away from «Cheap at twice the price» business models. Unless you have developed a revolutionary technology or process that allows you to significantly reduce the costs of a product or service in an industry (which is perfectly possible), wanting to offer «more for less» represents a tremendous drain on creating new companies, in addition to being unsustainable models over time.
- Build scalable business models. Many businesses «die of success» because they didn´t prepare for the consolidation and expansion process. From the beginning, you must design models that are capable of growing sustainably, allowing you to offer products and services that guarantee a pleasant experience for each of your customers.