What is a business model? What are the current requirements for business orientation and how to build an effective business model? Knowing these issues in hand, your business strategy will certainly be extremely favorable and revenue efficiency will increase. Let’s discover useful knowledge below!
What is a business model?
Model business aka Business Model, a specialized term in the field of economics. The model is a necessary and important factor for the success of startups because it leads the business to achieve long-term and sustainable values. Simultaneously, the development of the model helps to increase profits and reduce costs, but also helps businesses develop more and more perfect.
Simply put, a business model is a plan that a certain company devises to make as much profit as possible.
The basic structure of this model includes clearly defining the business products or services of the business, the market that the business is targeting and predicting. all expenses in business.
Concept of business orientation
Business Orientation means business orientation, it is a process of identifying top concerns, long-term goals that combine the most effective methods to achieve help perfect the business model more perfect, quickly complete the mission of the business.
What is the main business orientation and its importance
The main business orientation – Business Concept is the top priority business direction, which describes the main business directions in general, including information details about products (services), potential customers, special sales orientation, …
Actual research shows that, if a business does not clearly define the Business Concept, it will face complicated problems such as what customers are, the main methods In the competitive process, what are the main products in the business? From there, the risk of high loss, inefficient business easily leads to failure!
So, the main business orientation plays a very important role in the business model of the enterprise. Through that, the founders and investors can make the right decisions and directions, create a strong and effective marketing strategy.
2 current preferred business-oriented formats
So you already know what a business model is, right? Next we will learn about the best business trends in 2020 today.
Business in the direction of “money”
This business direction is clearly demonstrated through the following expressions:
- The price of a certain product or service is quite low: it’s not because their business can’t sell the product that they don’t. reduce costs, but because they can find good sources of raw materials and goods, save maximum costs, so even though the product prices are low, they still make a profit.
- Variety and rich in product designs offered to the consumer market: they are based on customer needs products, providing a very large number of products with diverse designs, making it easy for consumers to choose. Although the profit per product is not high, the total profit on all products is very large.
- Prioritize building Marketing strategies, especially Online Marketing for the purpose of bringing product images to the surface. widely and repeatedly in the market, similar to customer demand.
<3 but want an average price to be able to meet all the purchasing needs of the majority of customers.
Different product-oriented business
Compared with the business orientation for money, the new product orientation actually brings better value to the community as well as the profit of the business. Because:
- We will create more new, better products, maybe never on the market, user has not been used over.
- Products are made from premium materials and the quality is worthy of consumers’ spending money to own them.
- Contrary to the product variety of designs in the “coin” orientation, the goods will be very few but The design is very unique and rare.
- Branding high-class products
What is working capital?
One of the important steps in building an effective business model is finding long-term business capital. So what is working capital? To put it simply, working capital is the monetary value spent to invest in business operations of an enterprise. It is also considered a prerequisite for business decisions directly related to the operation, production, and business processes.
What types of capital are included?
To answer this question, we must consider many specific aspects as follows:
- Based on the circulation characteristics of capital in stages of the production and business cycle: including capital fixed and working capital
- Based on ownership relationship including equity and liabilities
Each business will have a different business model, depending on the purpose and basis on which they choose the most appropriate capital source.
Standard business system building process
In order to be able to find a scientific business solution with long-term value, creating a sustainable foundation for businesses in the future, the problem of building business model system is very urgent.
9 key business model elements
The business model could not be clearly defined, but it is also known as the Canvas business model.
- Key partner
- Main activities
- Recommended value
- Customer Relationships
- Customer segment
- Core Resources
- Distribution Channel
- Cost structure
- Income source
The name lean startup canvas is created on the basis of canvas – less expensive for startups.
The steps to build this new business model are:
- Define target market
- Main message
- Which channels to reach customers?
- Create a lead list
- Build customer trust with your product
- Sales
- Create great customer experiences
- Build a real success story
- After-sale care,or after-service
- Build a customer referral system, increase the number of returning customers
Conclusion
Through the article what is a business model? will surely provide you with the formulas for success, in your market doing business in 2020 with many fluctuations of the business market. economic.
In particular, a modern business model with many outstanding advantages brings new prospects to small businesses as well as helps affirm their position for large enterprises . That’s why innovative business ideas are constantly being released. Please refer to the following articles for the latest type of business.
Viocompany specializes in providing HCM seo service, fast keyword seo to the top of Google, device High-class professional web design package to help affirm the brand, run effective ADS and facebook ads
Contact info:
VIO CO., LTD
Address: No. 41 Street 12 KDC CityLand Park Hills, Ward 10, Go Vap District, HCMC
Phone: 0962337790
Email: info@vioagency.vn
