Finally,the last element of the business model.
At this point , you are expected to understand how your key activities relate to your value proposition and generate revenue. You should know how you will conduct essential business activities to deliver on what your are offering customers to bring income to your business.
It is now important to allocate costs within your business, these costs should align appropriately with your value propositions.
You need to identify the fixed and variable costs
(definition -https://biznessvirgins.blogspot.com.ng/2016/06/understand-basic-business-terms-3.html ) ;see how they will affect the overall health of the business. You also need to analyze how these costs will be affected as you scale up the business.
On your business model canvas, link your key activities to your costs.
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At the end of this exercise, you should have a cost structure that is driven by your key activities, you should also have an understanding of the relationship between your key activities and cost structure.
If the major costs in your business are not directly linked to key activities,you should analyze them again ,critically.
With this done ,you should have a working business model for you business.
I recommend a business model canvas to businesses that have been in operation for atleast 6 months to a year.
A lean canvas is more appropriate for fresh businesses.
However, a business model should be reviewed regularly, I’d say once in 6 months, depending on outcomes, you might want to tweak it here and there to improve on it.
Catch up on build up posts of the “define your business” workshop here
-Define your business 1 – https://biznessvirgins.blogspot.com.ng/2016/04/business-workshop-mondaysfridays.html
– Define your business 2 – https://biznessvirgins.blogspot.com.ng/2016/05/business-workshop-define-your-business.html
– Define your business 3 – https://biznessvirgins.blogspot.com.ng/2016/05/business-workshop-define-your-business_16.html
– Define your business 4 – https://biznessvirgins.blogspot.com.ng/2016/05/define-your-business-4-channels.html
– Define your business 5 – https://biznessvirgins.blogspot.com.ng/2016/06/define-your-business-5-customer.html
-Define your business 6 – https://biznessvirgins.blogspot.com.ng/2016/06/define-your-business-6-revenue-streams.html
– Define your business 7 – https://biznessvirgins.blogspot.com.ng/2016/07/define-your-business7-key-activities.html
– Define your business 8 – https://biznessvirgins.blogspot.com.ng/2016/07/define-your-brand-8-key-resources.html
-Define your business 9 – https://biznessvirgins.blogspot.com.ng/2016/07/define-your-business-9-key-partnerships.html
Developing a business model really helped my business,i will like to know how it helps yours.
I look forward to hearing from you, you can send me an email – firstname.lastname@example.org.