In today’s day and age, making the decision to do business is one thing and having all the resources to run a successful business is another. If you are a start up and have decided t to start a business, it is imperative for you to do your much-needed homework before you even launch your business. To do that, it takes months or even years to set up your business, get all the resources ready to kick in. So, let’s talk a little bit about some of the most vital elements to consider while you start doing your homework!
- value proposition
- revenue model
- market opportunity
- competitive environment
- competitive advantage
- market strategy
- organisational management
- management team
To begin the thought process, Value Proposition is one of the most vital element to ponder upon. What is it that you are offering the end consumers? Does your value proposition really fill the need of the consumers by the end of the day or is it just another firm added to the list of several firms out there serving the same need, in which case it is unlikely that you would survive very long in the cut-throat market where innovation is considered as important as the heart to the human! Your value proposition should be unique or something which fills the untapped need of the consumer somehow, in which case your very first step is good to go!
Your revenue model is another important element in the long list of checklists. This simply tries to answer the question of how will the business earn me money? There are several models out there, and you will have to figure which model suits your plan best?There are subscriptions models like the several magazines, online music subscriptions, advertising subscription models like many of the online sites do such as Google where every brand wants to advertise on Google since it is pretty much half the market and avoiding them is avoiding half the search market online, transaction model like several of the e-commerce sites out there, sales revenue model which are followed by the retail stores, affiliate marketing model also known as performance marketing where several brands affiliate themselves to different brands and take leverage, in turn getting traffic and footfalls to their online websites and stores respectively. Conclusively, these are some of the revenue models but the big question is which type of model suits your nature of business, which could even be a mix of two, three of them.
Market-Opportunity entails questions like what kind of market sizes exist in the relevant market you are planning to get into? One is have an idea of what kind of market one wants to get into and another is the reality what really exists out there? It is important for the business to know the difference and not jump into your market without any knowledge and without much-needed homework done successfully. It is always better to be realistic and knows the market as it exists today, avoiding all future failures. The market opportunity also entails the existence of some market niche, which is rare to find but a true treasure if found! One should nurture the niche markets and do their due-diligence in order to grow their business in it and more importantly protect their business in the challenging environment of niche markets!
Next in line would be the question of competitive environment and competitive advantage? The questions related to these would be namely who else occupies your intended marketspace? This could be direct or indirect competitors in the same environment, also what influences the environment that you could take advantage of and what is it that you can offer to the market space which will be different from what already exists, which makes up for your competitive advantage? The competitive advantage could be thought on different lines such as could you have the first-mover advantage in the market? maybe have some complementary advantages that could be added to the market, giving you an upper hand on that! maybe think of the leverage eg. Amazon had on the online market with its loyalty program for the longest time, its prime membership rewards taking the market by storm and capturing maximum subscriptions. another good example would be Uber, which thinks innovatively, taking a huge chunk of the transportation consumer market with different services suiting all wallet sizes!
Market strategy is next which needs to be considerable thought since this could also make or break your business! Question- how do you plan to promote your business in order to attract the right target audience(TA) for your business? it is important to know your TA, to study them as much as possible, so you can target them with customised messages and serve them where they are found, meaning to reach your TA where they reside, the channels they are most fond of and used to? It is important for the business to reach their audience where they reside and not vice-versa. This will make the audience comfortable with the brand and eventually adopt them, turning into loyal customers in the long run, which should be the ultimate aim of every business!
Organisational development involves how the firm’s structure should be set up from the inside in order to carry out the business smoothly? how the firm should organise work on the inside? One could safely say that the organisational development is like the skeleton of the organisation without which there wouldn’t be any framework to its existence! This would also determine the efficiency of the organisation, how well they work on the inside giving optimum results?
The management team involved questions related to the leaders, what kind of backgrounds should the company leaders have? This would determine the leadership strategy, hence impacting the entire labour force in the company for the better or for the worse. The kind of leaders who lead the company would determine if the company will eventually have a strong management team or a weak one! In most cases, the qualities and management styles of the top most leaders are adapted or rather has a trickle down effect to the entire workforce.
Conclusively, these important elements of the business model should be given most importance before launching any business to be successful!