Model for success

Vivek Bindra

Business entrepreneurs mostly aspire on structuring a new innovative product or service and are least bothered about the fact that a refined model does not automatically transform into a successful business,  but it is required to have a proper set of planning with concrete strategy. 

A great business model is that which can identify the consumer pain and utilise that pain as their strategy of a start-up business and penetrates in a market to provide an ample solution with a dynamic product or service. Additionally, it allows an entrepreneur to have a good insight over various stratagems which helps in ascertaining how to compete with rivals and how big segment of customers has to be covered with the intent of their willingness to pay.

Components of a business model

A business model defines how a business firm creates, captures and delivers  value to the customers, get them ready to pay for that value, which leads to ultimate conversion of business profits. There are five essential components

Analyse: Identify your audience first by choosing a particular segment who truly have a need for your product or service. Avoid targeting a wide audience which may hamper your business productivity. By recognising the interest areas of your customers and creating a compatibility with the nature of product or service being offered to them will ultimately give  momentum to the business. If market research is done properly by knowing who the market is, to whom your product is going to be present, it will be much easier to lead a known crowd of people when the product or service actually will enter in the market.

Brainstorm: You need to co-create the values which you alone can’t do. You need to co-create your products and services jointly with your customer and your business team by going back and forth with a lot of business orientation. Understand and assess the needs of the customer and carry out a market survey, ask questions and analyse the responses. Based on the evaluation the beginning of a strong value proposition could be developed.

Create/Develop the product: Once you have sufficient data about various market trends and the customers’ interest areas, the next step is to develop a product in order to best serve the needs of prospective as well as potential customers. Keep faith on your expert team in various disciplines like production and designing team for technical assistance, marketing executives for pitching right customers, finance and managerial departments for fulfilling fund related provisions. Proper coordination with teammates leads to ultimate success for a business enterprise.

Deliver the product: After designing and developing a final product or service, the next step is to land the product in front of the customer with the help of strategic positioning. A good positioning strategy not only helps in penetrating a market but also helps in getting a competitive advantage over the rival products in terms of sustainability. Furthermore, proper advertising and marketing campaigning plays a vital role in raising the customer awareness about the product or service that is being offered to.

Evaluate the performance: Once a product reaches the market, it is the right time to determine the product performance which facilitates a business firm in categorising the loopholes if may arise throughout the process of delivering a particular product or service. An evaluation process is essential as if you do not measure the performance the improvement cycle will fail.

Defining, sprouting and revolutionising a business strategy are the keys lying within the heart of aspiring entrepreneurs strategically. Business model embraces on creating an ambiance for an organisation which delivers value in a consistent way. 

Note: Niche identification makes product introduction easier for a particular business.

Tip: Golden rule of this stage is to comply with customers’ demand, stand out with the rival positioning strategy and pitch the right node towards revenue generation.

Tip: It is important to examine your own business to check as if you meet the set criteria for success or need some adaptation for any flaws if you might have.

— The writer is an international motivational speaker & leadership trainer