Business

Four steps to building a business model

The flow of building a business model differs from person to person, but there is no significant difference in the points to consider regardless of the flow. We will thoroughly research and analyze the industries and markets in which we are expanding and carefully assemble business models to compete within that industry. Now, let’s check the primary flow from the beginning of thinking about the business model to the final narrowing down to one candidate.

1st STEP: Analyze the business model of the industry in which you are expanding. Building a business model requires new ideas, but first, you need to be familiar with the industry you are expanding. As a first step, let’s analyze the business model in the industry in the following process. 〇Procedure to analyze the business model in the industry [1] Confirm the business model of the industry to enter [2] Analyze which “basic pattern” the business model corresponds to [3] “Why that business model” Is it used?

2nd STEP: Think a lot of new business models After understanding the industry’s characteristics, the next step is to consider a “new business model” that has not yet emerged within the industry, utilizing the basic patterns and frameworks explained above. If you want to increase your business’s success rate even a little, the point is to think about more business models.

3rd STEP: Leave a business model with high added value and brush it up. After coming up with many business models, the next step is to narrow down the candidate business models from the perspective of “a business that can provide high added value to customers.” Since business is based on “solving customer issues and worries,” business models that are innovative but have low added value must be excluded from candidates.

FINAL STEP: Select a business model to work on from the viewpoint of “feasibility” In SMEs with limited management resources, it is necessary to narrow down the business model to work. Therefore, the final criterion is the “feasibility” of each business model. Even with attractive business models, many are challenging to realize due to technical and financial problems.

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