Step 2: Creating the Cost Part of the Business Model
Posted: Mon Jan 20, 2025 6:58 am
By asking the questions mentioned below, you can determine the most profitable methods and resources for your business. Since there are many of them, you need to focus on those that will not entail huge costs, but will be able to prove their effectiveness during the implementation of the chosen business model.
What knowledge and technologies (resources) are needed for:
creating a proposal;
channel formation;
maintaining positive relationships with clients;
receiving finances.
The following resource ig database categories are distinguished:
Physical. Tools needed for production, trading platforms, etc.
Intellectual. Brand, specialized knowledge and skills, patents, partnerships, copyrights, etc.
Human. These resources are definitely the most important. Especially in cases where the work is based on the use of knowledge or creativity. This refers to the activities of designers, lawyers, legal consultants and other similar professions.
Financial. Own investments, credit funds and other cash injections.
What are the key processes required for:
creating a proposal;
channel formation;
maintaining positive relationships with clients;
receiving finances.
Creating the cost side of the business model
Key processes can be divided into:
Production – directly related to the creation of the proposal.
Problem solving: Processes that help resolve disagreements that arise when dealing with customers.
Platform – related to a business based on automated distribution of offers (web technology, payment terminals, etc.).
Do you need support and possible help from partners in your business? To answer this question, you need to understand:
Who exactly can be considered an important partner?
Who can be considered the main supplier?
What resources attracted you to your business partner?
What events do you have planned?
There are 3 main motives on which business interaction models are created and then implemented:
Optimization and economies of scale. To reduce costs, many entrepreneurs use the resources of partners.
Reduced uncertainty and risks. A large team of business partners will be able to compete even with giant companies.
Obtaining specific resources or performing specific activities. This refers to obtaining certain papers, permits for business activities, for example.
What amount should be allocated to implement each of the proposals? It is necessary to calculate the expenses and answer the questions:
Which aspect of the company's business model will require the most investment?
Which resources are the most expensive?
What processes need to be involved?
What knowledge and technologies (resources) are needed for:
creating a proposal;
channel formation;
maintaining positive relationships with clients;
receiving finances.
The following resource ig database categories are distinguished:
Physical. Tools needed for production, trading platforms, etc.
Intellectual. Brand, specialized knowledge and skills, patents, partnerships, copyrights, etc.
Human. These resources are definitely the most important. Especially in cases where the work is based on the use of knowledge or creativity. This refers to the activities of designers, lawyers, legal consultants and other similar professions.
Financial. Own investments, credit funds and other cash injections.
What are the key processes required for:
creating a proposal;
channel formation;
maintaining positive relationships with clients;
receiving finances.
Creating the cost side of the business model
Key processes can be divided into:
Production – directly related to the creation of the proposal.
Problem solving: Processes that help resolve disagreements that arise when dealing with customers.
Platform – related to a business based on automated distribution of offers (web technology, payment terminals, etc.).
Do you need support and possible help from partners in your business? To answer this question, you need to understand:
Who exactly can be considered an important partner?
Who can be considered the main supplier?
What resources attracted you to your business partner?
What events do you have planned?
There are 3 main motives on which business interaction models are created and then implemented:
Optimization and economies of scale. To reduce costs, many entrepreneurs use the resources of partners.
Reduced uncertainty and risks. A large team of business partners will be able to compete even with giant companies.
Obtaining specific resources or performing specific activities. This refers to obtaining certain papers, permits for business activities, for example.
What amount should be allocated to implement each of the proposals? It is necessary to calculate the expenses and answer the questions:
Which aspect of the company's business model will require the most investment?
Which resources are the most expensive?
What processes need to be involved?