A business model is a high-level plan for profitably operating a particular business in a specific marketplace. A primary component of the business model is the value proposition. This is a description of the goods or services that a company offers and why they are desirable to customers or clients, ideally stated in a way that differentiates the product or service from its competitors.
A business model for a new enterprise should also cover projected startup costs and sources of financing, the target customer base for the business, marketing strategy, a review of the competition, and projections of revenues and expenses.
A common mistake in creating a business model is underestimating the costs of funding the business until it becomes profitable. Counting costs to the introduction of a product is not enough. A company has to keep the business running until revenues exceed expenses.
A business model may also define opportunities for partnering with other established businesses. An example would be an advertising business that could benefit from an arrangement for referrals to and from a printing company.
The Advantages of a Business Model
Successful businesses have adopted business models that allow them to fulfill client needs at a competitive price and a sustainable cost. Over time, many businesses revise their business models from time to time to reflect changing business environments and market demands, thus making a pivot.
How long does it take to complete the service?
One to two weeks from the date of the 1st meeting with the startup.
For that time you will get the 1st clear layout of your business in clear business terms. Next steps are Devising a detailed Marketing Analysis as well as Devising Marketing Strategy. Finally, you should go through the financials.
How many hours does the mentor work in total? How many hours does the mentor work directly and personally with the startup?
The service requires at least 6 hours of mentor’s work; 3 to 4 of them are in direct interaction with the startup.
Regular Price: BGN 80/ 1 hour; VAT exclusive.