Imagine that you are planning a week long vacation at a destination about which you have just sort of heard about. You have never been to that location, you don’t know what kind of people are there, or what is the current situation of that place. All you know is that you are excited about the vacation and you have a tad bit of information about the cuisine which is served. What do you do? You start planning weeks before the vacation. You pack your bag, take the essentials, and get on the road. Now replace the idea of an adventure with a startup. Instead of a fun-filled week, its a five year long mission to turn your idea into a sustainable business.
A startup is a struggle filled with hard-work, long hours, relentless pursuit of your dreams instead of hot meals and exotic locations. What do you do then? How do you fathom to cope up with all the responsibilities, challenges, downfalls and yet, survive? The answer is, you make a robust plan. The first and perhaps the hardest step you will take as an entrepreneur! So what is a business model?
Its a strategy that sums up your future actions and contains a road map to where you want to go; a set of assumptions you have about what are the most critical aspects for your model. Its a two-fold approach towards a business which can be roughly broken down into two parts. Part one dictates all the activities related to ‘Making’ something, i.e. designing, manufacturing, purchasing, etc. Part two comprises of other side of making, viz. selling the product or service, reaching to customers and setting up your brand. A business plan’s structure needs to align with your idea, as the entire trajectory of the startup depends on the effectiveness of the business model. Lets take a look at the two most important aspects of the structure of a business plan:
A business, whether it provides services or product needs to portray what value it is creating by addressing the customers. The approach can be attitudinal, demographic or psycho-graphic. It is absolutely important that the consumers need to understand what value your business is proposing. Value proposition is the backbone of a business plan.
The success of the business depends on the consumers and who associates themselves with it. Understanding your customer target and creating a pricing model to build a consumer facing business model is very important.
There are several things that you need to consider while making a plan. The crucial thing to keep in mind while doing so is to understand & plan the trajectory of your startup.
business model We will be here with more tips on how to make and execute an effective plan which will strengthen your startup. Stay tuned!
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