Business Model Planner Simple Means to Define Characteristics for All the Criteria of the Plan
Business Model Planner: Here is a tool to help you create an effective business model (the way in which revenue will be produced), covering all the critical bases.
Be hard on yourself. Do not gloss over the characteristics of the criteria I have set in the table below. Design convincing arguments for each characteristic. When you have done this, it will be abundantly clear where the ‘rubber meets the road’. This tool is designed to help you, but if you want more guidance, then do not hesitate to contact me, and make a point of checking out the Business Model Canvas Tool.
You’re going to need to offer your customers more in use value than in cash value. Think about it. Of course, there will be payment, but the transaction needs to be a pleasure, not a pain. If not, your business will fail to delight you or the customer. Its long term health will also be in question.
At the same time, realize that your business startup needs to be effective as well as delighting. The process of acquiring your customers must be efficient. If it costs you too much in time or money, you will end up firefighting.
You will need to make a good gross margin on sales. Not to profit at the expense of your customers, but to allow for your own mistakes—you won’t win every time. You need to think about how new customers will become long term ones. Getting new customers is always more costly than serving old ones.
Satisfied customers will come back for more and tell their friends. Make sure your actions live up to what is spelled out in the marketing plan.
Horses for Courses
All the above is good advice, BUT remember that there is no ‘one size fits all’ in developing a business plan. Whether it’s done on the back of an envelope or involves all the bells and whistles with spreadsheets galore, the document must have be aimed at a specific audience. You may do a core plan, but it will need focus and adaptation if you are going to use it to support a standard application for a bank loan, to seek venture funding, if the tool you are going to use to bench mark progress once you’re in business, to persuade someone to become you co-founder, or to join the venture in a senior role. These are just examples, you will have your own reasons for writing a business plan; that’s why just taking a template off the Internet can only be a guide, not something to be slavishly followed.