What is a business model?

The development of your business idea into a businessmodel

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what is a business model

After the initial development of the business idea you have a rough sketch of the product or service from the earning and what the value for the customer. Your first analysis market has convinced you that customers will be those who find that your product or service is worth more than money in their wallet. Probably you have the idea of experts and potential customers or investors are discussed. Now it's time to the idea further develop and business model development. This is the way the technology and content let go and to focus on your customers and your competitors. The good news is that in this stage not yet fully developed business have to write. In a business plans are far too many things that are not yet of interest. Investors have often and hate reading business plans (how useful they are). They are more interested in the business model. this more later but first a little something about the business plan.

Do you have to start with a businesplan?

Writing a business plan is a very valuable (but unfortunately time consuming) exercise. It helps you manage every aspect of your company to systematically analyze and fit into the bigger picture. Although there people who want to set up a company in basic knowledge often scornfully about what a business is thought - "typically are air "-, it gives you a good overview of what you need to get your company a success. how many takes time before it is earned? how many is it deserved? How much money do you what month is needed? How much time and money it takes to the launch? How do you ensure that your idea is protected? how many square feet of office space, production space and lab space do you need? All aspects are discussed in the business. All is in the detail of the explained.

There is no fixed structure for a business plan. On the internet you You find many formats that you can and lead to a complete business plan. These are often based on starting a whereby the company to sell Just be purchased (nothing against the buyer, which is an art in itself). This applies to the retail trade. However, the very specific point of a innovative company - developing a new product which is embodied in a development plan and what part of the business - often lacking in these formats. in this stage you have a business plan is fully not necessary. It is sufficient at this stage to working with a business model. However, lets start at the beginning and regard your invention as an investor. That will help you to shape up your ideas.

It is obvious that without an idea or invention, there is no chance of sales and turnover. However, having one good idea is only the beginning of the process leading to success. There are a lot of people out with a good idea who think that they have to find a person to sell the idea to for a lot of money. That is not how it works. You can not sell just an idea because it's not worth anything. A product which can be produced and sold to many customers has a certain value but in most cases your idea is not a product. Not yet. Almost always, there is the necessary research and development work to be done before the idea becomes a product which is ready to be sold to a customer.

Performing Research and Development costs money and mostly it costs more money than inventors estimate before they start working on the idea. Quite a few people are so satisfied with their brilliant idea that they forget that it needs to be transformed into a business concept (a business model). This concept should be that attractive and convincing to an investor that he (or she) starts to belief in your idea and is ready to invest in it. Therefore, regard your idea as a potential investor and start working on it until it is transformed into an attractive business model. It is the trick to take your idea and look at it from the perspective of an investor. This will help you to focus the project on raising sufficient capital needed to develop your idea into a product. This can be achieved by going through a number of more or less well defined steps. These are detailed on the roadmap for a high tech start up company (yet to be translated). But at first there is something more to say about the transformation of your idea into a business model.

Transform your brilliant business idea into a company and think as an investor

As explained above, in most cases money is crucial if you want to shape, develop and realize your ideas. This holds true unless you have enough money of yourself, of course, but there are more people with a good idea than people with enough money. Any investor will be interested in your project if he (or she, of course) has the idea that he can earn more money by investing in your project than keeping his money in a bank account and earn some interest. In the latter case the risk is limited but this is also true for the return. In the financial world a high risk means high return and low risk means low return. So an investor who wants to earn a high return will be prepared to embark on a high risk adventure but, of course, will seek for ways to reduce the risk as much as possible.