Why is Business Model more Important than an Idea?
You’ve come up with a great small business idea and are ready to start a small business. But are you? Before you start your small business, you need to create a business model – your roadmap for business success. And no, a business model is not a business plan. You can’t even begin to write a business plan until you’ve created a “blueprint” for your success with a business model. Confused? Let’s take a closer look at a business model.
Business Model - A Blueprint for Business Success
Building a business is a lot like building a house – and who can imagine a house built without preliminary sketches? Creating a small business model means planning – on paper – the fundamentals of your business. As an entrepreneur, it helps you put aside the excitement and make a realistic evaluation of the potential success of your business idea. A proper business model enables you to figure out elements such as, Your business concept – what problem are you solving for whom; how you will create customer value; how your product or service will get to customers; how your business will stay competitive; and all revenue and costs you can anticipate.