Business Model : Ultimate Guide to Creating successful business models in 2020
This is the most comprehensive guide to building successful business model on the planet.
The best part ?
I am going to show you techniques for analyzing and generating successful business models that are working right now (in 2020)
In short, if you want to create a best business model, you’ll love this guide.
So, Let’s get started.
Introduction: Be Familiar in short, here
The B- Model of a company tells
- What value you create
- How you deliver it
- Where you deliver it
In short, it is the soul of your business. You will learn more in detail about these models in this guide.
How to create a successful business model for your company
You have an idea. You just felt a bingo moment for it. Or, May be you are already in business. The success factor largely depends on your business’ working method. Some entrepreneurs replicate someones else’s model. While some modify an existing one for themselves. It may work or may not. Because it depends on demography, price range and many other factors.
You can consider the existing models for inspiration. And then, you can refine one that suits your business best.
There are several steps of creating a successful business model. In simplest way you can break it into
- Understand the problem segment.
- Define and create solution for that problem
- Price at reasonable point
- Satisfy Users after sell/ service. (Retain)
While creating front end view of a model, have a view over internal operation. Means you can say that there are two parts of a business model
1. Front end ( Customer point of view )
2. Back End ( Your internal process and resource management )
For back end, or internal part of business model, consider the following steps
- An almost perfect process from creating to delivering
- Resource management
- Value proposition ( Balance in pricing and costs )
- Converting feed backs into feed forwards ( Improvement Cycles)
Myth : Your business model should be perfect from get go. Nope, Actually, It will drag you back for a perfect plan. And remember,
” Perfection is the enemy of profitability”Mark Cuban
So, you will have to keep improving it time to time. This may add more processes. Which can create an efficient business model. You can innovate your own, on the way to success. Keep learning from faults. Improve by considering feed backs.
Let’s take a practical example : The Instagram
In this quick analysis, we will take a look over how the instagram became what it is today.
Initially the social app instagram was released as Burbon. It was for just check ins and earning points app while hanging out. It was much complicated and feature loaded.
Then at a point, data showed that people are not using check ins feature. They just loved sharing photos. Turning point ! As a result, they redesigned the model and converted into photo sharing app. It is today in your smartphone. And you might have shared a photo recently.
Moreover, you can read about the whole story about instagram here
Let’s take an another example : The Amazon
As we all know, amazon started initially as a book store. First it had only catalog of books, not stock piled books set. When someone ordered a book, they would purchase it from the vendor. And, at last, they deliver it to user.
Now, they tweaked from only books to an a to z store. Now amazon has its own warehouses and provides FBA facility to sellers to store at amazon’s warehouses. And, now they are dominating in almost every field. Like from book publishing to prime video and music.
What if they just would have stuck at only book store. And, Here, they would never have entered into ecosystem business model.
Amaon provides the sellers the space to sell, and user can get product at door step. This saves the time of buyer. And saves initial capital expenditure of a seller. Generally, seller has to have a shop to sell in traditional market place. Here he compromises with limited reach, but amazon operates virtually and globally. Means no initial capex, no limited reach to cutomers.
Fact : The arrow in amazon logo shows an a to z product store. At first amazon was not amazon, it was relentless.com. If you open the link “relentless.com”, it will redirect you to amazon.
We have discussed the business model creation process. We breaked into two different segments just to understand it effectively. Lastly we analysed amazon and instagram business model, how they tweaked and changed their models. Now it’s over to you, how to create a successful business model. However, this article asks more in depth analysis, so do our need. I will try to keep it updating.