Developing an Effective Business Model

To develop an effective business model for your company, draw a picture that establishes a structure so your employees can produce products or services for customers in a profitable way. A business model typically includes a description of your customers, how customers use your product, how you distribute your product and details about how you promote your business. The model also describes key operational tasks, staffing and other resource requirements as well as details about how business is conducted.

A business model describes your business using visual images, typically on a single page, while a business plan describes your business in a lengthier document

Understanding the problem you are solving for your customers is undoubtedly the biggest challenge you’ll face when you’re starting a business. Customers need to want what you are selling and your product needs to solve a real problem. But, ensuring that your product fits the needs of the market is only one part of starting a successful business. The other key ingredient is figuring out how you’re going to make money. This is where your business model comes into play.

Upon completion of this course, you should be able to understand

1. Value propositions in business
2. Business models
3. Business plans
4. Transaction Cost Economics
5. And many more