Business Model FAQ

  
  

Business Model Frequency Asked Questions

Business Model FAQ sample

Top 10 Frequently Asked Questions on Business Models

What is a business model canvas?

  • A one page business plan.
  • The logic of how a business is sustainable.

Why do I need a business model?

  • To confirm you can be sustainable in the current environment.
  • To confirm you can be sustainable to changing customers and changing industry sector.
  • To share the business model with stakeholders to gain their support.

What can I use a business model for?

  • Share the business model with your stakeholders to easily describe how it operates.
  • Create a starting point for your business implementation.
  • Create a team that can deliver the custom business model.

Why are business models useful for start ups?

  • The new product or service can be confirmed to be desirable, viable and feasible.
  • A business model can be refined and tested until it is sustainable.
  • Once the business model is proven then the business can scale up in size.

Who are the stakeholders interested in the business model?

  • Business partners
  • Financial supporters
  • Employees

How often should a business model be reviewed?

  • Whenever the environment changes.
  • Technology changes rapidly which may influence business model design.
  • The introduction of the NBN (very fast Internet) is a time to review your business model.

Where are the new opportunities in a fresh business model?

  • New customer sectors can be reached online.
  • Technology can improve efficiencies.
  • New services can assist your business remotely.

How can a business model used for competitive advantage?

  • Create business models of your competitors for comparison.
  • Investigate new channels or methods your competitors are not using.
  • Leverage new digital options most people are unaware of.

How can a new business model be used for growth planning?

  • A business model can show both current and future attributes.
  • Future business attributes can be developed for growth.
  • New directions can be monitored for trends over time. This can be used in growth planning.

How does a business plan relate to customers?

  • It shows the various customer interaction methods.
  • It shows the development of a customer in terms of awareness, evaluation, purchase and after sales.
  • It shows the customer segments your business operates in. E.g. Mass market, niche, online, multi-channel.

Top 10 Questions that should be asked

Why are digital options important with business models?

  • Information Communication Technology (ICT) is providing many new choices within business.
  • Ignoring ICT can fatal for your business. e.g. Blockbuster.
  • The NBN (high speed Internet) can deliver even more ICT options.

Why do I need to consider future business requirements?

  • Consider which trends are affecting your industry sector.
  • What are the new products and services.
  • How are customer requirements changing over time.

What can I do with a completed business model?

  • It can be page one of a full business plan.
  • New desired attributes can be tested.
  • Your want list can be turned into an action plan.

What is the next step after a business model creation?

  • Confirm your new assumptions.
  • Develop business cases for the advanced new directions.
  • Run pilot tests to confirm your new directions are worthwhile.
  • Update your staff training and operations procedures.

How does Business Model Creator make the creation process easier and better?

  • Create a business model faster as most attributes are already listed for your choice.
  • Show what you already have in a business model.
  • Show what you wish for in a business model.
  • Include digital options that can place you ahead of the competition.

Why should updated business model attributes be tested and validated?

  • New attributes may need to be confirmed, refined and re-tested.
  • Test new ideas on a small scale before large investments of time and money.
  • Confirm you can scale up new attributes with existing or new resources.

Can a fresh business plan add new customer segments?

  • Yes.
  • Attract new customer from new sources. e.g. Online, social ,media, website, maps, video, pictures, published articles, eBooks, white papers etc.
  • Provide different segments for sales domestic and international.
  • Operate a bricks and mortar store and online sales simultaneously.

What are the risks with a new business model?

  • Some wanted attributes may not suit your environment, customer base or current business operations.
  • Some pilot tests may run poorly and affect your reputation.
  • Retraining of staff is successful.

What are the assumptions with a new business model?

  • Your updated business model is accepted by all your stakeholders.
  • Your customers like the new ways you operate your business.
  • Your growth predictions are justified.

What monitoring is required for a new business model?

  • Use Analytics to confirm how your customers reach your business for awareness, evaluation, purchases, delivery and after sales.
  • Include feedback methods to confirm your customers are happy during the business - customer lifecycle.
  • Use business and industry benchmarking to confirm your business is ahead of the marketplace average.



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