Business Model Development

What is a business model?

A business model describes how a business operates and generates revenue. It’s sometimes referred to as revenue model.

Most people are familiar with the traditional business model: buy a material, use your skills to turn it into a product and sell the product to earn profit (selling price – costs). Other commonly used business models are agency, subscription, marketplace, drop shipping, freemium, etc.

Your business model should meet these criteria

Provides a unique value to customers, so they continue purchasing your products and services
Provides value to other stakeholders (suppliers, employees, business partners, etc.), so they stay motivated to work with you
Enables you to achieve desired profit margins

Every business is different

Every business is unique in its own way (value proposition, competencies, company culture, risk tolerance, etc.) and if you just copy a business model that has proven successful elsewhere, it’s very unlikely that your company will achieve the same level of success. Your business model has to be developed based on your circumstances.

Is your business model working for you?

When developing business models for our clients, we always start with a detailed analysis of their customers and stakeholders, and the unique environment in which they operate, to ensure the model works for them.

If you’re business model is not producing the results you want, it may be time for a review or complete restructure. Contact us at strategy@mcboffin.com.