What is a business model?
A business model describes how your company makes money. It is dynamic, fast, designed to be rapidly changed, and useful for idea evaluation, identification of gaps and key questions.
What is a business plan?
it is static, slow, often treated as a final collection of facts and is useful for fund raising, thinking through all aspects of your business.
8 key elements of a business model
-Value proposition
-revenue model
-market opportunity
-competitive environment
-competitive advantage
-market strategy
-organizational development
-management team
What is the value proposition: (key question)
Why the customer should buy from you?
What is a revenue model?
how will the firm earn revenue, generate profits, and produce a superior return on invested capital
What is market opportunigy?
What marketspace do you intend to serve and what is its size? (a market space is the area of actual or potential commercial value in which company intends to operate.
What is a competitive environment?
Who else occupies your intended marketspace?
What is competitive advantage?
what special advantages does your firm bring to the marketspace?
What is market strategy?
How do you plant to promote your products or services to attract your target audience?
What is organizational development?
What types of organizational structures within the firm are necessary to carry out the business plan? it describes how the firm will organize work.
What is a management team?
what kind of backgrounds should the company's leaders have? A strong management team can make the business model work, can give credibility to outside investors, has market specific knowledge, and has experience in implementing business plans.
What is a portal business model?
search plus an integrated package of content and services (ex: yahoo.com)
Revenue model: advertising, referral fees, transaction fees, subscriptions.
B2C
What is an e-tailer business model?
an online version of traditional retailer
(ex: amazon.com)
Revenue model: sales
b2c
What is a content provide business model?
Digital content on the web, such as news, video, music,
revenue models: Subscription, pay per download, advertising, affiliate referral fees.
What is a transaction broker business model?
Process online transaction for customers
revenue model: transaction fees
Industries: financial services, travel services, job placement services
ex: monster
What is market creator business model?
create digital environment where buyers and sellers can meet and transact.
examples: priceline, ebay, amazon merchant services
revenue model: transaction fees
What is the service provider model?
online services.
what is a community provider business model?
social network