Business model: everything you need to know how to develop yours

We prepare for you, a guide with what you need to know to develop your own business model. Many beginning entrepreneurs, even some with more experience, have doubts about the first steps when it comes to entrepreneurship and end up focusing on what they consider most urgent. The priorities end up being established by the most practical activities and that, in the long term, can mean big problems for your company. One of the first fundamental and essential steps when opening a company is the development of a business model. Why? The business model is what will shape what your company will do! It is from this that all the main actions of your business will be observed and documented. It will even help you understand the main aspects of your business and will ensure that everyone is aligned to perform all tasks in the best possible way. Because it is a relatively new concept, many people get confused when developing a business model. And, since we already understood that this is decisive for your company, it is necessary to understand not only what it is, but the entire process around a successful business model! Ultimately, what is a business model The business model is the way in which your company generates and delivers value to its customers. Or, more practically, it is the structuring of the elements and stages that make up the way your company does what it does. In this document, the entrepreneur must cite and describe all the main actions of the company and their relationships with each other. This makes it easier for them to understand exactly how the business will work and what are the weak and strong points of what you are running. This macro vision of your company will be essential to strategically evaluate how to deliver the best product or service to your client in the most practical and profitable way for you, in the short, medium and long term! Perhaps this explanation seems very abstract, at first. But with some examples you will see how simple and fundamental is the structuring of a business model. What is a business model for? In other words, a business model serves to achieve income in a sustainable way. It can be used both by those who already have a company and need to restructure it, and by those who are starting from scratch. In it, you have a broad vision of your business and it allows you, among other things: Better know your company / project and your purposes. Reflect exactly what your company is at the current moment and then consider changes. Identify and eliminate what is not so important at first. Analyze and obtain value proposals that meet and enhance the main objectives of your business. Generate strategic innovation opportunities. Create a common understanding between the people involved in the venture, so that they walk in the same direction.

Those are just some of the aspects that a business model takes into account to, finally, be like a guide. That is, a business map that allows you to structure your resources and processes to meet customer demand and, consequently, generate income. Difference: business model and plan Many people associate the plan with the business model. It is important to understand that these two processes are different! A business plan is a fully detailed document that is used to understand the viability of your business, through market, economic and procedural analysis.

This is the document that, for example, must be delivered to an investor, when applicable. Regarding the business model, it is the process prior to a business plan, it will help you to observe all the stages that should be included in your business plan, but in a less detailed, more practical and visual way. Ie: should I have a business plan? Yes! The difference is that the “what” you do is structured in the business plan, in the most detailed way possible. Costs, income, processes, structure, etc.

They are long and structured, take time to develop and are also the result of your work, finally, no detail of your business can be left out. And the business model is the mapping of “how” you do it: how you generate income, how you generate customer value, the way you work on your deliveries and how all those stages are related. These are quick and simple to understand.

That is to say: from them, it will be easier to think of all the essential elements for a complete business plan. Business Model Generation The Business Model Generation is a book, written by entrepreneurs Alex Osterwalder and Yves Pigneur, that revolutionized the way companies around the world understand your business model. Therefore, it is a lect

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