Before you develop your company's business plan, a better first step to take is to make a business model. A business model basically just describes how your company plans to make money. A better definition is that a business model takes the technical inputs such as your services and products and turns them into economic outputs such as what you sell or can earn income from.
Some similarly related ideas to the business model are value proposition, value network, and value chain. A value proposition is a specific, clear, and succinct statement about how your product and service will beneficial to others, as well as how it is different from other products on the marketplace.
For a campus music selling business whose idea was to sell compact discs to students, the value proposition was: Unlike most retailers we will sell compact discs that are affordable and can conveniently be purchased on campus. A value chain the sequence of activities you will need to produce a product or fully deliver your service. For the CD selling company again, that would be to order at wholesale prices compact discs, then figure out a inventory system, then market and sell the CD's as well as to provide great customer service for delivery, returns, and sales. In the overall value chain for each CD, the CD selling company is towards the end while the people who write the songs and produce the music are at the top.
The value network is the overall system of competitors, complimentary entities and partners that you could utilize to deliver extra value to a customer. Back to the example of the CD store. The value network would include other local stores and student groups that you can set up booths at their events and to advertise in the student newspaper. In exchange, the CD store agrees to donate some of the proceeds to the student groups.
Looking to buy an existing manpower agency? Check out the recruitment companies for sale listing at www.dougleschan.comSome similarly related ideas to the business model are value proposition, value network, and value chain. A value proposition is a specific, clear, and succinct statement about how your product and service will beneficial to others, as well as how it is different from other products on the marketplace.
For a campus music selling business whose idea was to sell compact discs to students, the value proposition was: Unlike most retailers we will sell compact discs that are affordable and can conveniently be purchased on campus. A value chain the sequence of activities you will need to produce a product or fully deliver your service. For the CD selling company again, that would be to order at wholesale prices compact discs, then figure out a inventory system, then market and sell the CD's as well as to provide great customer service for delivery, returns, and sales. In the overall value chain for each CD, the CD selling company is towards the end while the people who write the songs and produce the music are at the top.
The value network is the overall system of competitors, complimentary entities and partners that you could utilize to deliver extra value to a customer. Back to the example of the CD store. The value network would include other local stores and student groups that you can set up booths at their events and to advertise in the student newspaper. In exchange, the CD store agrees to donate some of the proceeds to the student groups.
No comments:
Post a Comment