Your business model describes the detail of how your business strategy will be implemented and your business goals achieved.
It outlines how your organisation is organised –how it delivers your products and services to your customers –your revenue streams and how you add value and therefore margin in the process.
Determining the business model is a choice –it is a choice with implications on your resource requirement. Most businesses start with pretty clear business models – but often day to day decision making – dealing with challenges, responding to opportunities, results in a fuzzy model. Where there was once clear revenue and margin streams, it is increasingly more costly to realise that revenue. This is a sign of potential business model stress and time to reset and renew.
Our approach to reviewing Business Models is to firstly understand the Business Strategy of the owner/leadership team - their access to resources and skills and their degree of urgency for change and growth. Working with the leadership team, Lead Your Industry facilitates the analysis of the current model and develops scenarios for alternate business models for comparison.
An excellent tool for evaluating your current business model and for exploring alternatives is the Business Model Canvas. The Business Model Canvas is a strategic management template for developing new or documenting existing business models. It is a visual chart with elements describing a firm's value proposition, infrastructure, customers, and finances. It assists firms in aligning their activities by illustrating potential trade-offs. See below or www.businessmodelgeneration.com for more information; canvas poster shared under their Creative Commons licence.
Download Canvas here.