What is your business model?

When you see this question, what comes to your mind? A lot of times it’s a lot less complex than it sounds. It simply means how do you plan to make money?

If you break down this question you would find that to understand how to make money, you need to answer the following questions.

-who is your target market?

-What customer problem or challenge do you solve?

-what value do you deliver?

-How will you reach, acquire and keep customers?

-How will you define and differentiate our offering?

-How will you generate revenue?

-What is your cost structure?

-What is your profit margin?

In a nought shell, you need to figure out where your money will come from, who will pay, how much and how often will they come, then more importantly what portion of the money would contribute to your profit margin.

After writing how you intend to make money its also important to know when you expect to start making money. Sometimes you start a business and money doesn’t come for months, in this case your model must include:

-Upfront costs you expect to incur when setting up your business.

-The source of funds to pay for your upfront costs.

-A schedule showing when you expect revenues to pour in.

CALL TO ACTION:

Attempt to answer these questions highlighted and come up with a one page business model for your business, and the first 5 people to respond gets their models reviewed by my team and I.