What Framework Can Be Used to Think Through Your Business Model?
In the current environment, everyone is talking about how business models need to evolve. Several companies recognise that they need to make changes to their existing model, however, do not have a framework or structure for how to think through their existing business model and how this could be changed. The article below describes a business model in more detail and provides a framework for thinking through the different elements of your business model.
In summary, a description of your business model explores three key areas:
1. How do you deliver value to clients?
2. How do you entice clients to pay for that value?
3. How do you profit from that payment?
Below is a table with questions related to the three areas above. The questions in the right column can be used to think through the three business model areas above.
We suggest working through the questions in the right column to describe your existing business model. Once you have gone through this exercise, you can use it to explore potential changes to your business model given the current environment. For example, your target customers’ pain points might look quite different now compared to three months ago. Therefore, you may need to modify your product or service to address these new pain points.
Going through the exercise of answering the questions in the right column will bring clarity and guide you through key areas of the business that need to be considered.
Boraine Consulting assists SMMEs with a full suite of accounting, tax and consulting services. Our focus is on improving the sustainability of SMMEs through financial literacy and empowering SMMEs with tools and information to make sound financial decisions about their businesses.
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