How to start a business ? This is an interesting question that always asking.
Let’s start with business model canvas, a strategic business temple to search and describe the business potential which can transform to business activities from business idea.
In order to start this business model canvas, there is 9 sections to do list
1. Key Partners, which define your key suppliers that they can offer so that can optimize the business operations and risk factor.
2. Key Activities, which describe the value of this business model, how do you manage your daily business, the important in your customer relationship that bring in revenue stream
3. Value Proposition, which describe your business products and services that can solve customer problems/needs/satisfaction
4. Customer Relationship, which describe your business continuity that focusing on value-creation with customers
– how to get new customer
– how to keep customer buying
– how to grow revenue from current customers base
– how to service the customer timely
– how to integrate business cost and profit between your business and customers
5. Customer Segment, which describe your business value that most important to customers which bring most revenue. Which markets/products that customers will always needs.
6. Key Resource, which describe resources (human, financial, intellectual property, physical location) needed to sustain and support the business
7. Distribution Channel, which describe the best channels that can deliver to customers via cost-effective as well as service the customers from time to time
8. Cost Structure, which describe the business monetary in running daily business activities
– what is the fixed cost e.g. rental, salary
– what is the variable cost e.g. sales commission, delivery fees
– what is break-even cost e.g. how much sales can cover costs
– what is turn around cost e.g. how fast can sell the products/services
This is important because knowing business cost will reduce the risk of business failure especially cashflow situation
9. Revenue Streams, which describe the value that customers willing to buy / pay, how do customer buy / pay, how frequent customer will buy/pay in order to generate continuous revenue to your business
Download this business model canvas template here
Try to get few people about 3-5 to do review of your business model canvas so that can get more feedbacks whether your business idea / model which can further develop more values of your business.
Then conduct online business survey to validate your business model before start the business so that your business is more focus to success. You can get online business survey service here.