Three essential steps in building business model

Coinciding with the growth of interest in business model, companies are investing lot of money and time in sketching business models. There are three essential steps to go through while building effective and efficient business model:

Design: Typically, designing business model covers understanding the relevant components suitable for a particular business and arranging these to function in logical manner. After all a business model is concerned with the logic of practising a business. While arrangement of elements necessary for the smooth functioning of a business is primary focus in designing business model, logical flow and leading those who operate the business model to arrive at right decision are also aims that cannot be under-estimated.

Describe: You have got to describe your business model by giving an account of it in words and/or diagram elaborating structure, features, characteristics, qualities in a simple yet substantive manner. A business model canvas is boon to many who needs to get everything on one page. Having said that let me also emphasise the need to explain building blocks by way of accompanying notes. Moreover, such a description must be short and inviting as mini-skirt and impressive and elegant as a flowing dress. Description of business model could appear in annual reports, company profiles and in other areas of corporate communication.

Test-run: As the focus of any business model is to operate business in effective and efficient manner, a dry-run must be done before business model comes into effect. This assay must address the question whether business model is properly aligned with the plan and strategy of a business. It also must determine the efficacy of business model in terms of operations under testing circumstances. If amendments are necessary these should be incorporated and try-out once again before passing business model onto implementation.

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist