A business plan is a document that companies and prospective companies create to project how they will create and grow their business in the upcoming 3 to 5 years.
Business Models are now being used by many people instead of Business Plans. Instead of trying to project years down the road, Business Models emphasize Product-Market fit and adjusting to changing circumstances.
A popular tool for creating business models is the business model canvas:
Business Model Canvas - Explained and Suggested Databases
Your 'Creation Process'
Key Activities:
The most important activities an organization needs to perform well.
Key Partners:
The network of suppliers and partners that bring in external resources and activities.
Key Resources:
The most important assets required to offer and deliver the previously described elements
- IBIS World
- Mergent Online
- Passport
Your 'Product/Service'
Value Proposition:
Based upon a bundle of products and services that create value for a customer segment. (See Video Clip Below)
- Mergent Intellect
- MarketLine Advantage
- BCC Research
- CB Insights
Your 'Distribution, Marketing & Sells'
Customer Relationships:
Outline of what type of relationship is established and maintained with each customer segment, and explains how customers are acquired and retained.
Customer Segments:
Groups of people and/or organizations a company aims to reach and create value for with a dedicated value proposition.
Channels:
Describes how a value proposition is communicated and delivered to a customer segment through communication, distribution, and sales channels.
- Mintel
- eMarketer
- SimplyAnalytics
Your 'Money Out & Money In'
Cost Structure:
Describes all costs incurred to operate a business model.
Revenue Streams:
Result from a value proposition successfully offered to a customer.
