Top 10 Frequently Asked Questions on Business Models
What is a business model canvas?
- A one page business plan.
- The logic of how a business is sustainable.
Why do I need a business model?
- To confirm you can be sustainable in the current environment.
- To confirm you can be sustainable to changing customers and changing industry sector.
- To share the business model with stakeholders to gain their support.
What can I use a business model for?
- Share the business model with your stakeholders to easily describe how it operates.
- Create a starting point for your business implementation.
- Create a team that can deliver the custom business model.
Why are business models useful for start ups?
- The new product or service can be confirmed to be desirable, viable and feasible.
- A business model can be refined and tested until it is sustainable.
- Once the business model is proven then the business can scale up in size.
Who are the stakeholders interested in the business model?
- Business partners
- Financial supporters
- Employees
How often should a business model be reviewed?
- Whenever the environment changes.
- Technology changes rapidly which may influence business model design.
- The introduction of the NBN (very fast Internet) is a time to review your business model.
Where are the new opportunities in a fresh business model?
- New customer sectors can be reached online.
- Technology can improve efficiencies.
- New services can assist your business remotely.
How can a business model used for competitive advantage?
- Create business models of your competitors for comparison.
- Investigate new channels or methods your competitors are not using.
- Leverage new digital options most people are unaware of.
How can a new business model be used for growth planning?
- A business model can show both current and future attributes.
- Future business attributes can be developed for growth.
- New directions can be monitored for trends over time. This can be used in growth planning.
How does a business plan relate to customers?
- It shows the various customer interaction methods.
- It shows the development of a customer in terms of awareness, evaluation, purchase and after sales.
- It shows the customer segments your business operates in. E.g. Mass market, niche, online, multi-channel.
Top 10 Business Model Questions that should be asked
Why are digital options important with business models?
- Information Communication Technology (ICT) is providing many new choices within business.
- Ignoring ICT can fatal for your business. e.g. Blockbuster.
- The NBN (high speed Internet) can deliver even more ICT options.
Why do I need to consider future business requirements?
- Consider which trends are affecting your industry sector.
- What are the new products and services.
- How are customer requirements changing over time.
What can I do with a completed business model?
- It can be page one of a full business plan.
- New desired attributes can be tested.
- Your want list can be turned into an action plan.
What is the next step after a business model creation?
- Confirm your new assumptions.
- Develop business cases for the advanced new directions.
- Run pilot tests to confirm your new directions are worthwhile.
- Update your staff training and operations procedures.
How does Business Model Creator make the creation process easier and better?
- Create a business model faster as most attributes are already listed for your choice.
- Show what you already have in a business model.
- Show what you wish for in a business model.
- Include digital options that can place you ahead of the competition.
Why should updated business model attributes be tested and validated?
- New attributes may need to be confirmed, refined and re-tested.
- Test new ideas on a small scale before large investments of time and money.
- Confirm you can scale up new attributes with existing or new resources.
Can a fresh business plan add new customer segments?
- Yes.
- Attract new customer from new sources. e.g. Online, social ,media, website, maps, video, pictures, published articles, eBooks, white papers etc.
- Provide different segments for sales domestic and international.
- Operate a bricks and mortar store and online sales simultaneously.
What are the risks with a new business model?
- Some wanted attributes may not suit your environment, customer base or current business operations.
- Some pilot tests may run poorly and affect your reputation.
- Retraining of staff is successful.
What are the assumptions with a new business model?
- Your updated business model is accepted by all your stakeholders.
- Your customers like the new ways you operate your business.
- Your growth predictions are justified.
What monitoring is required for a new business model?
- Use Analytics to confirm how your customers reach your business for awareness, evaluation, purchases, delivery and after sales.
- Include feedback methods to confirm your customers are happy during the business - customer lifecycle.
- Use business and industry benchmarking to confirm your business is ahead of the marketplace average.