- How to develop a business model?
- Are you unable to developing an effective business model?
You might be a budding entrepreneur and like other successful entrepreneurs, you also might be vying to establish a successful business.
But, are you too struggling to develop an effective business model?
If yes, then this article is a must-read for you.
If you too are looking for ways of how to develop a business model, then the “ABCDE Model” as we have created, is going to help you out as much as never before.
What is ABCDE Model?
A = Analyze || B = Brainstorm || C = Create || D = Deliver || E = Evaluate
Let us look at all aspects of the ABCDE model one by one.
For developing an effective business model you need to analyze your target customers and the target geographical area.
You need to put your feet in your customer’s shoes to understand their behavioral pattern and their needs.
It is then only you will be able to strike the right chord of your customers.
Analyzing is followed by brainstorming the gathered data along with your team to understand the customers’ needs.
A small survey can be done in the market to understand your customers’ needs.
You have to do an assessment of your target customers by asking them questions.
On the basis of analysis of those surveys and responses, you have to create your product or service.
After understanding the customers’ needs, and developing an effecting business model, you have to establish your factory or business to start production of the desired product or service.
Many entrepreneurs think that the success of their first product will either make them millionaire or doom them.
While producing your first product, keep in mind that the first product is never your final product. It is only meant for testing and not for success.
So, you must be prepared for the first failure!
But, you must analyze ‘why the first product failed?’ and improve accordingly.
After producing a product or service, your next step should be the delivery.
You need to select a proper channel to deliver and distribute your product or service to the customer in a cost-effective manner.
Now, as you have delivered your first product, it’s time for you to evaluate your product by getting customers’ feedback.
It is also called testing, measuring, and adapting.
You need to assess whether you have achieved Customer Delight or not.
If not, then you have to bring changes in your product accordingly.
You have to improve your solution architecture repeatedly to reach Customer Delight, which is a continuous process.
If you genuinely adopt the “ABCDE Model”, you will never have a question like how to develop a business model that can take you to the level ahead.