What is a business model? It is the tactics within your business plan that generate revenue and profits. It should cover your short-term and long-term strategies including a way in which you can measure the ROI of the tactics you implement.
I recently came across an article in TechCrunch titled, 'What Exactly is a Business Model' that highlights seven points to consider, that I have referenced at a high level below.
7 Components you should consider:
1. Reaching Customers - Know your target market and how you are going to reach them. There are numerous channels including, social, mobile and email marketing campaigns, but which ones work for your business?
2. Differentiating Your Product - What makes your product or service stand out and makes your audience take action that impacts your bottom line?
3. Pricing - Have you recently evaluated the price for your product and or service in comparison to your competition? Is your price fair and in support of your business model while allowing you to truly compete against your competition?
4. Selling - How would you rank your sales process? Does it promote your product or services and in fact highlight the need your product or service fulfills for your customers?
5. Deliver/Distribution - Your products need to be designed and packaged for the channel through which they will be distributed to customers.
6. Supporting Customers - What happens after the sale? This could be your follow up in the way of consulting, teaching or supporting the customer which continues with efficiency.
7. Exceeding Customer Expectations - Customers are evaluating more stringently how they spend their dollars. Give them a reason to purchase from you that is different and provides a memorable customer experience. Happy customers refer business your way and is another marketing channel not to be overlooked.
Best of Success in 2011!
Monday, January 10, 2011
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