Business Model
The business model of a standard business plan consists of a single document that is divided into several parts. This document includes organization description, market research, competitive analysis, marketing and sales strategies, investor needs, financial management and business management. The document can serve as a guide for our business and can be introduced to financial and investment groups if needed to secure capital.
Advantages of The Business Model
Business model can help us organize our thoughts. It can provide a guideline so we don’t get stuck on a blank sheet of paper wondering where to start. A great business model provides instructions for each step of our business plan and shows us how a business plan can attract an investor.
Disadvantages of The Business Model
Although the business model is very important, but depending on the circumstances, it may not be the best way to complete our plans. For example, not only do we have to complete financial spreadsheets, but we also have to do two to four of our work ourselves, and we have to make sure that we put the numbers and specifications in the right place. If we don’t know what numbers and specifications to use, the process of writing our business plan is not easy. But we can update everything; Because we make changes to our numbers, but integrating the right charts into our work plans is harder than we think.
How to Use a Business Plan or Business Model
As we mentioned at the beginning, the business plan is divided into different parts. By using each section and copying it to the corresponding Excel, we can prepare a similar document. After completing your simple work program, make sure to format it in an attractive way, print it and use it in a great way.
Title of Pages
Enter your company information including legal name and address. If we have already designed a logo for our business, we can use it at the top and bottom of the pages. for example:
Business name
History
Address
E-mail
Website
If it is to be presented to a company or another person, for example to attract capital, we must add this part:
Presented to The Name
Name of Company or Financial Institution
Table of Contents
Executive Summary
Business Overview
Market Analysis and Competition
Sales and Marketing Plan
Ownership and Management Plan
Action Plan
Financial Plan
Appendices and Exhibits
1. Executive Summary
The executive summary is near the beginning of the plan, but it is the last part that is written. This section provides a short, concise, and optimistic overview of our business that will pique the reader’s interest and create a need to learn more. The executive summary should not have more than two pages and is a brief summary of the sections of this plan. Identifying our target market and describing how we are going to connect with and serve our target market customers.
2. Overview
Provide the general nature of our business, including production, sales and other statistics. This information should include trends and demographic information of economic, cultural and governmental influences. What share of the target market will be available to us, whether we want to provide a unique, improved or low-cost service.
3. Market and Competition Analysis
In this section, we must fully demonstrate that we have analyzed our target market and that there is sufficient demand for our products or services. Our competitive analysis should include a detailed assessment of our competitors and how we compete in this sector.
4. Marketing and Sales Plan
If we have after-sales services, we must describe how we decided to encourage customers in the target market to buy our products or services, including advertising, pricing strategies, sales, distribution and support.
5. Product or Service Suggestions
Explain your product or service. How this product of ours provides the interests of the customer and what factors differentiate it from other competitors.
6. Pricing Strategy
Describe how to price your products or services. Pricing to attract customers should be competitive but should be high enough to cover our costs and generate profitability.
7. Sales and Distribution
Explain how to distribute our products to the customer. For example, our sales will be wholesale or retail. What kind of packaging do we need? How do we ship our goods or services? What payment methods are used?
8. Ownership Structure
Describe the legal structure of your company. For example, a joint-stock company, a limited liability company, or a sole proprietorship. If there is a partnership, list the percentage of ownership. If you have a sole proprietorship, this is the most important part of it.
9. Management Team
Specify the managers and their roles, the main positions of the employees and how to compensate for human damage, and include a brief resume of each.
Up To Sum
The business model shows us an overview of the business, the processes that should be done in this way, how to do them. The business model consists of various parts, including marketing, executive plan summary, management team introduction, etc. Despite the advantages that this pattern has and can clarify the continuation of our business path, due to constant changes in market conditions and financial conditions, we may not be able to continue relying on a single and specific pattern to the end.
