Build a Profitable Business Model

In this episode, we dig deep into what is needed to build a profitable business model.

There are different elements of it and the things that need to be considered. We talk about one that is used to come up with an optimal business model.

Six Piece Framework for Business Modeling

Under this model, there are two categories: Internal and External. These two have three factors each: Players, Strategies and Outcomes.

External

External elements are related to the customer, marketplace, team and others. They are:

• Who: It is about who we are serving, who our customers and marketplace are. Define the identity of a single or specific customer. Then extrapolate that identity in the marketplace. Understand their geographics, psychographics and demographics. Define your optimal customer.
• How: How do we give them what we are trying to deliver? It is about the connections and channels. Define the relationship that we are trying to create with our customers and other associated people. Specify the channels that we are going to use to deliver the products, services or experiences to the clients.
• What: It is about what we are giving them in terms of value, products, services and experiences. It is about the value you create in their life through transformation. It should be holistic so that you serve everyone: customers, marketplace, community, society, team and yourself.

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