Perfecting Your Business Model

Your business model is your lifeline to a successful and profitable business. Consider the following to create, or fine tune your enterprise:

Value proposition

A description of your customer’s problem, the solution that addresses the problem, and the value of the product from the customer’s perspective.

Market segment

This is your group of customers to target, recognizing that different market segments have different needs. Sometimes the potential of an innovation is unlocked only when a different market segment is targeted.

Value chain structure

Your position and activities in the value chain and how you will capture part of the value that it creates in the chain.

Revenue generation and margins

How your revenue is generated (sales, leasing, subscription, support, etc.), the cost structure, and target profit margins.

Position in value network

Identify your competitors, complementary partners, and any network effects that can be utilized to deliver more value to the customer.

Competitive Strategy

How your company will attempt to develop a sustainable competitive advantage, for example, by means of a cost differentiation, or niche strategy.

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