Answer these 9 questions to create your business model
“I have a cool product/ business idea but I don’t know how to bring it to the market.”
A clear business model is the first thing you need to work on before launching your product. It doesn’t have to be a fancy document, but at the very least, to determine whether your product is viable, you need to have the answers to the following nine fundamental questions.
1. What are the selling points of your product or what values do your product provide?
Business
2. Who is your target?
Every successful product is wanted by a group of consumers.
Simple Case Study: Whatsapp is used by the people who want to send messages on their smartphone for free. Innovative product creators use Luna2 to find collaboration opportunities with retailers.
3. How are you going to attract and retain customers? And how much will they cost?
Daniel Wellington uses social influencers. This should not be limited to marketing, but also sales activities and customer service.
4. How are you going to distribute your product to the customer?
The common ways are the distributor, sales force, online stores, and retail stores. Asos uses an online store to sell products to their customers.
5. What is the pricing of your product and how are you going to charge your customers?
Sales of physical items, rental, subscription fees, licensing agreements, and advertising and brokerage fees are some of the common revenue streams. Apple makes the profit from sales of goods while Luna2 charges customers subscription fees.
6. What key resources are needed to get your business started?
Take anything you can think of that your business needs to function into account, including human, financial, intellectual and physical resources
7. What key activities must your business perform to create and deliver the product?
For Skype, it’d be software development and maintenance.
8. What key partners does your business need?
To create and deliver the product, many different business relationships and collaboration might be involved. Luna2 is a great place for you to seek the right partners.
9. What are your business’s fixed and variable costs?
These refer to all costs that are incurred when operating the business.
After answering these questions, your business is one step closer to be ready for the market. You now need to test it, get feedbacks, and make adjustments to ensure it will work in the fierce business world with your budget.
