Who needs it?

So, you’ve got this great business idea! You’ve been daydreaming about it for months, maybe years, and it’s just the right time in your life to give it a go. But hold on, you may be ready, but is your idea? Just because you can envision everything from the logo to the staff lounge doesn’t mean your business is ready to launch. Chances are there are lots of things your imagination hasn’t even conceptualized yet. And that’s where business modeling comes in.

The process of business modeling structures and shapes your idea, making sure you’ve looked at all the angles and considered all the options. It’s a relatively simple diagram—unlike a full business plan—but it’s even more essential.

Analyse this

Essentially, a business model asks and analyses several basic questions. And someone reading it should say, “Wow, cool business idea!” when they’re finished. So, how would you answer these questions?

  • What’s your business concept? If you can’t describe it in 30 seconds, that’s a red flag. You probably need a firmer handle on your concept.

  • Who will you be serving? If you shout out, “everyone!” go back to the drawing board. Trying to serve everyone serves no one. Be specific!

  • What can customers get from you that they can’t get already? This can be a tough one, but it’ll force you to think out of the box. Do you offer an ordinary product but make it differently? Finance it differently? Package it differently? Does that uniqueness offer real value to your clients?

  • How will customers purchase and receive your product or service? There may be more than one way to buy from you; online, in person, in bulk, etc. Again, you may have a conventional product that’s made available in a special way. The key is offering value to your customers.

  • Will your business actually make money? Ah ha! Here it’s time to do the numbers. Be sure to set the bar fairly high for this answer. Could you convince your brother-in-law to invest $10,000 in seed money?

  • What key partners are involved? Entrepreneurs also need to develop key ‘partnerships’ with people and organizations that are not a direct part of the daily operation. Will you need distributors, third party stores, or others to help you better service your clients?
Guess what?

In answering these questions, you can start out with educated guesses but, then it’s research, research, research! To arrive at the right business model you’ll need to analyse loads of different options—even some slightly crazy ones—until you’ve hit upon the right one. Keep in mind, an entrepreneur’s first version of an idea is rarely the best idea. And even once launched, your business will need to tweak its model regularly as it grows and market conditions change. Be ready to pivot or perish!

Do you need professional help?

So, are you crazy to want to start a business nowadays? Not at all! But whether it’s a catering company in Chomedey or a dating service in Duvernay, it’s best not to do it alone. Check out the new Business Modelling Bootcamp at YES www.yesmontreal.ca Along with their coaching sessions and entrepreneurial workshop series, they’re a great one-stop-shop to help you get started.