BUSINESS MODEL Flashcards
(44 cards)
A strategic plan on how the company will make money. It contains information about services, products, markets and expenses
Business Model
What are the components of Business Model?
- Vision and Mission
- Objectives
- Customer Targets and Challenges
- Solution
- Differentiators
- Pricing
- Positioning and Messaging
- Go-To-Market
- Investment
- Growth Opportunity
Describes the overall purpose
and direction of the company,
as well as its long-term goals
and aspirations.
Vision and Mission
Outlines the specific,
measurable goals that the
company aims to achieve in
order to fulfill its mission
and vision.
Objectives
Identifies the specific pain points
and challenges faced by the
company’s target customers, and
how the company’s solution
addresses these issues.
Customer Target and Challenge
Describes the product or service
that the company offers to solve
the problems faced by its target
customers, and how it provides
unique value compared to other
solutions on the market.
Solution
Highlights the factors that set
the company’s solution apart
from competitors, such as
technology, features, pricing, or
customer service.
Differentiators
Outlines the pricing strategy
for the company’s product or
service, including any discounts
or promotions that may be
offered.
Pricing
Describes how the company
positions its product or service in
the market, and how it
communicates its unique value to
customers through messaging and
branding.
Positioning and Messaging
Outlines the specific tactics and
strategies that the company will
use to bring its product or service
to market, such as through
advertising, social media, or
partnerships.
Go-To-Market
Describes the funding sources
and capital structure for the
company, including any
investments or loans that are
required to launch or grow the
business.
Investment
Identifies potential opportunities
for the company to expand its
customer base, develop new
products or services, or enter
new markets in the future.
Growth Opportunity
A __________ captures your
hypothesis for how your business will
generate revenue and reach
profitability — charging a price for
an offering you create at a
sustainable cost.
Business Model
A _________ drops down one
level to show how you will implement
the business model. It includes specifics such as
operational practices, experience
and structure of the management
team, milestones to be reached on a
set timeline, and comprehensive
financial projections.
Business Plan
is a framework that helps a
business/company to generate revenue and make profit from its operations.
Business Model
A business model eases the process of
revenue generation. It is rendered
possible for a well-crafted business
model can map out exactly how the
company will operate; how much will
your product cost, who will be your
target market and all activities that
your product involves.
Profitability
A company will have the capability to
anticipate, shape, seize opportunities
and avoid threats while maintaining
competitiveness by improving,
combining, protecting company’s
intangible and tangible assets in
comprising its business model.
Competitive Advantage
As business models are ideally
subjected to continuous feasibility
testing, a company would be able to
explore new revenue stream and
distribution channels - allowing itself to
encounter patterns to evolve and
eventually bring about innovations.
Innovation
An important component of a
company’s long-term sustainability is its
business model. A company can better
withstand market fluctuations,
economic downturns, and other
difficulties with a solid business model.
Sustainability
A business model can aid in the
efficient resource allocation of a
company. A business can decide where
to allocate its resources by analyzing its
revenue sources and expense
structure.
Resource Allocation
A solid business model demonstrates to
investors that you’re serious about your
business and that you’ve given thought
to your plans to make money. While
your business model alone won’t be
enough to convince investors to back
you, no investor will offer you funding
without one.
Lenders and Investors
TYPE OF BUSINESS MODEL:
Purchase and sells products manufactured by
others and distributed to them — the last step of
a supply chain.
Retailer Model
TYPE OF BUSINESS MODEL:
Converts raw materials into products that are sold
to distributors, retailers, or directly to consumers.
Manufacturer Model
TYPE OF BUSINESS MODEL:
Sells labor (intellectual or physical) for a set fee (hourly or by project).
Fee-For-Services Model
