Business Model Write for us
A company’s economic model (or the business model) represents the plan to generate income, whether in sales, advertising, marketing, etc. The business model is still translated in French as “business model” or “corporate model.” These expressions designate the economic model of a company: positioning, objectives, means, and resources to achieve them and overall description.
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What is a Business Model?
The business model is a document that describes how your business will generate revenue and be/become profitable. In other words, a business model must analyze the mechanism of value creation, and if you can send us the ideas, you submit the article at contact@businessian.com.
In practice, this amounts to:
Describe what you will sell and to which customers;
Define the value provided: What is the competitive advantage of your product (price, quality, use, personalization, time-saving, etc.) and its “use value”?;
Analyze market data: Existing offers and demand;
to determine how and at what price you will sell your product.
Why is a Business Model Important?
Unique to each business, the business model identifies a company’s strengths and weaknesses. Profitability being at the heart of the economy, this planning brings together the particularities and variables of a brand.
It allows:
to optimize the economy, financing, and human resources;
understand the market;
to propose an adequate offer;
to adapt to the different actors (partners, consumers, suppliers, etc.).
Types of Business Models
Two economic models are mainly used in the current economy:
- produce to resell with a margin
- buy to resell with a margin.
Each business model is unique and assimilated into the company’s DNA; it can be inspired but not copied.
Example of a Business Model
Take a simple model for determining the wage level of workers in the software programming market. This model assumes that the interaction between supply and demand for labor in this sector will determine the wage. We then take that there is a free market.
How to Identify the Right Business Model?
Finding a good business model consists of identifying a balance between the different constraints and opportunities that characterize the company:
- the offer that it is possible to build, taking into account customer expectations, organizational rules, and financial imperatives,
- the external partners and resources that can be mobilized,
- the communication and distribution channels that can be used given internal or external constraints,
- the inner resources that can be mobilized: cash, productive capacities, people (skills, know-how, life skills, creativity, etc.),
- The margins can be achieved given the structure of variable and fixed costs.
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