to finance, we must first consider whether their business model is attractive
for entrepreneurs, if you can not bring value to the user at a reasonable price, then the business is difficult to succeed. In other words, if only to provide the latest technology, or simply based on the goal of reducing global hunger, then the enterprise can not develop. To this end, entrepreneurs need to clear their business model in the business plan.
all entrepreneurs know this, but according to the experience of venture capitalists, most entrepreneurs may be difficult to fully consider the full business model elements. The most common reason for failure is that startups offer solutions to problems, but they can launch products without a clear market.
venture capitalist Elizabeth Edwards in a book called "Startup", the book gives the business model design proposal. On this basis, entrepreneurs and investors should remember the following 10 elements of the business model:
1 value theme
what do you meet or what is the problem? The value theme must clearly define the target user, the user’s problem, your unique solution, and the advantages of the program from the user point of view.
2 target market
who are you facing the target market is a group of users, your business will be marketing and marketing products to attract this user groups. This user group should have specific group characteristics and is willing to buy your product.
3 sales marketing
How will you cover
users? Word-of-mouth marketing and viral marketing in recent years is very popular, but it is not suitable for new business. Define sales channels and marketing.
how do you make your products and services? The general choice includes manufacturing and outsourcing. The key issue here is the time and cost of marketing.
how do you distribute your products and services? Some products and services can be sold and distributed through online channels, while others require multiple levels of distributors, partners and value added resellers. Need to make sure that your product is in the local market or the international market.
6 revenue model
how do you make money? The key point here is to own and explain your price and revenue stream to cover all costs, including recurring expenses and support costs, and can still get a good return.
7 cost structure
what are your costs? New entrepreneurs tend to focus on the direct cost of the product, while underestimating the cost of marketing and sales, recurring costs and support costs. In this regard, it is necessary to use a similar company’s published report to