Before we get started on those 10 steps, a brief definition of a business model: It describes how a company creates and distributes a compelling value proposition that customers are willing to pay for at a price that yields an acceptable profit for the company. Now for the 10 steps to developing a business model.
What is a ‘Business Model’. A business model is a company’s plan for how it will generate revenues and make a profit. It explains what products or services the business plans to manufacture and market, and how it plans to do so, including what expenses it will incur.
Models generally include information like products or services the business plans to sell, target markets, and any anticipated expenses. The two levers of a business model are pricing and costs. What is a business model and how to develop itBusiness models are a way of thinking about what makes a business successful. They are used in a variety of ways by businesses and they are important because they inform how a person approaches business and why they do business. The business model concept is based on the idea that a business is made up of three components:Market: the way in which customers buy your products and servicesthe way in which you sell your products and Services Product: the value you provide to customers