Developing Business Model : Ideas After Passing Feasibility Analysis
After performing feasibility analysis for new business ideas, they become ready to proceed to further steps before writing the business plan. The immediate step is to develop an effective business model, which is the representation of how the business runs and makes value. Developing effective business model is explained here as part of our discussion for the 2nd book “Entrepreneurship 2012” in your channel Management with Merits – Manage to Prosper. The book explains entrepreneurship as a process called the entrepreneurial process, which is the basis for the books parts (major steps – 4) and chapters (mini steps – 15). In our previous posts/videos, we have already introduced this book and covered the first major step (entrepreneurial decision) and the first two tasks in the 2nd step (developing successful business ideas), specifically opportunities & ideas and feasibility analysis (previous post). To access all posts and videos of this book, kindly click here.
Concept and Importance :
The book defines business model as the recipe or plan at which the new business creates, delivers and captures value for all its stakeholders. Thus, it is primarily a mental process at which the entrepreneur can “draw” a holistic and integrated model of the way of value production. The authors of the book provided “Barringer/Ireland” Model in 2014 to help establish a well-written business model. It consists of the 4 core aspects of any business and shows the interrelation between them. Each aspect (part) has some points that expand it, which are 20 in total. The full model, as appeared in the book (5th Edition – 2016), can be downloaded in PDF format (2 pages) from here. The below picture is extracted from the model and shows the core categories and points of the model.
That was the end of our session/post today. Thank you so much for reading and watching. Next session, we will discuss the next step after developing the business model, which is the last task to be done prior to writing the business plan. It is the “Industry & Competitive Analysis”. Watch and follow us each Thursday on your channel Management with Merits – Manage to Prosper. Please support your channel strongly so that it can continue its glorious mission and services. Subscribe to the channel in YouTube and activate the notifications bell there. Follow us, participate with us and share the channel and all its electronic contact platforms.