It is the previous thing to the business plan and it will allow you to clearly explain what you will make available to the market, how you are going to do it, who your customers are, how you are going to sell it, and how you are going to generate income.
The business model allows you to say who you are, how you do it, how much it costs you, with what means, and what sources of income you will have. Before any type of investment in your business (time, money, energy) it is advisable to create the business model.
A business model describes the general idea of how a business will create, deliver, and capture that added value for which customers will be willing to pay.
In 2010 Alex Osterwalder designed the Business Model Canvas; a format that directly offers a global vision of the business idea, clearly showing the interconnections between the different elements.
According to the creator, a business model consists of nine elements:
The groups of people to whom you want to offer the VP. They are the basis of the business, so they must be fully understood and defined as specifically as possible. Ideally, look for a market niche, the smaller and more vertical, the better.
VALUE PROPOSITION (PV)
It is what the business will deliver to the market to satisfy a need in a different way from others.
It determines how we communicate with the client to send them the Value Proposition (PV). Here it is determined how they will know about you and how you will send them your product or service.
RELATIONSHIPS WITH CUSTOMERS
There will be no business without establishing a direct and long-term relationship with customers. Here, establish how you will maintain the relationship with customers to sell and meet their different needs.
SOURCES OF INCOME
They are all the ways the business will make money by taking advantage of the different forms of Value Proposition (PV)
Describe the resources that you are going to have: human, technological, physical (premises, vehicles, warehouses, points of sale, etc.) to create the Value Proposition (PV).
All the internal processes that have to be carried out in order to deliver the Value Proposition (PV)
Today it is almost impossible to start a business with your own funds or resources. It is therefore advisable to define who we can count on outside of the business to be able to carry out the Value Proposition (PV).
It describes all the costs that are incurred in operating the business. It is about knowing and reducing costs to try to design a profitable business model.