The creation of a company requires a number of reflections, related as much to the day-to-day management of the company as to its core activity and the essential elements for its economic and financial development. The business model specifically makes it possible to put down on paper the way the company will make money. Target, choice of distribution channel, pricing policy… all these information have to be brought together in the business model. Here are the steps needed to arrive at the definition of the most viable business model.
Pricing Policy: Sin of War
Selecting the right pricing policy for your business is the first critical point to help you implement the most viable business model. If your pricing policy doesn’t work in your projections, it’s not likely to work in reality.
Many entrepreneurs make the mistake of choosing the wrong pricing policy before setting up their business, which can have negative consequences in the long run. To avoid this pitfall, it is up to you to choose the right pricing policy, the right strategy for setting the prices of the products or services you sell. Premium (High price to differentiate yourself from the competition in your market), Low cost (Low price to enter the market faster), Freemium (Free to call consumer to avail pay later features) Edition) … There are many different pricing strategies. It is up to you to choose the one that best suits your company and its objectives, so that your business model gains clarity and efficiency.
Choice of Distribution Channel
Internet, physical points of sale… Again, there are many solutions when it comes to choosing the optimal distribution channel for your business. If you opt for the distribution of your products or services on the Internet, you will need to be widely present on social networks and/or thanks to a website dedicated to your company. If you choose to sell your products or services at physical points of sale, a presence on the net will not be neglected. All these questions should arise in your mind so that your business model is as consistent as possible and meets the expectations of consumers and potential investors.
Pay attention to originality!
Although the business model is similar to a formal economic model encased in marble, do not hesitate to bring a touch of originality to entice even the most skeptical. In both substance and form, your business model can differentiate itself from the competition in order to attract more customers and investors. To achieve this, challenge your project regularly to bring some innovative touches and see how you can generate income through different axes of competition. Think about it!
Iterate and improve your business model
Just because you’ve thought about your business model for months doesn’t mean it won’t necessarily actually work. It is by facing the market, in other words your customers, that you will really know what works or not. This is mainly valid for the actual appeal of your product or service, but it may very well affect your business model as you see one put out to be less effective than the other in reality. It’s not just because you generate turnovers that it’s necessarily perfect. Some companies didn’t hesitate to change their business model several times until they found the right one.