How not knowing Business model makes you a Rookie
What is a Business model? What is it for? How will it improve my goals? To avoid being a Rookie, you must know the answers to these questions. You must plan ahead of time to prevent too much risky decisions.
A business model is the conceptual structure supporting the viability of a business, including its purpose, its goals and its ongoing plans for achieving them.
At its simplest, a business model is a specification describing how an organization fulfills its purpose. All business processes and policies are part of that model. According to management expert Peter Drucker, a business model answers the following questions: Who is your customer, what does the customer value, and how do you deliver value at an appropriate cost?
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One Way of Formulating your Business Model
The Business Model Canvas is a one page overview that lays out both what you do (or want to do), and how you go about doing it; enabling structured conversations around management and strategy by laying out the crucial activities and challenges involved with your initiative and how they relate to each other. This visual format, first introduced by Osterwalder and Pigneur, is useful for both existing and new organisations and businesses. Existing programmes can develop new initiatives and identify opportunities while becoming more efficient by illustrating potential trade-offs and aligning activities. New programmes can use it to plan and work out how to make their offering real.
The individual elements prompt thoughts within the separate activities or resources, while the capability to have the complete overview encourages fresh perspectives and ideas about how those pieces fit together. This structure also helps to keep group discussions more focused and bring everyone onto the same page.
This is an example of a Business Model Canvas. How do you use it? Please visit this link to know more http://diytoolkit.org/tools/business-model-canvas/.