Business ModelsStartup Foundations

The 9 Building Blocks of a Robust Business Model

A business plan is like a map for how a company works and makes money. There are nine main parts to this plan
The 9 Building Blocks of a Robust Business Model

In business, making a strong plan is like building a big structure. Each part is important. When these parts work well together, they make a business strong. This article talks about the nine main parts of a strong business plan. It shows how each part helps make a business that lasts and does well.

Key Takeaways

  • Really knowing your customer groups helps make good offers.
  • A clear and good offer is key to making your business different.
  • Good channels are needed to reach customers and give them your offer.
  • Keeping good customer relationships is important for lasting success.
  • Having different ways to make money is good for staying strong financially.
  • Knowing your main assets is important for working well.
  • Making sure your main tasks match your business helps it work well.
  • Working together with others can make your business better and safer.
  • Handling your costs well is important for making money.

Opening Remarks

A business plan is like a map for how a company works and makes money. There are nine main parts to this plan. They help design how the business works. These parts include things like what the business offers, who it sells to, and how it makes money.

Customer Groups

Understanding Who You Sell To Customer Groups are about knowing who you sell to. It’s important to know what these people or companies need and like. This helps make products and services that fit them well.

Example

Netflix sells to many people by offering lots of different shows and movies.

What You Offer

Making Good Offers What You Offer is the heart of your business plan. It’s about the special things your business gives to customers. This makes your business different and shows where it fits in the market.

Success Story

Tesla is doing well because it offers new, green, and advanced products.

Channels

How You Reach Customers Channels are how you get to your customers and give them your offer. This can be through selling directly, online, or in stores.

Good Strategy Example

Apple uses both stores and online ways to reach customers, making it easy and nice for them.

Customer Connections

Making and Keeping Relationships Customer Connections are about how you talk to and treat your customers. This can be through personal help or automatic services.

Example of Building Relationships

Amazon is good at customer service and making things personal. This helps them keep good relationships with customers.

Money Sources

How You Make Money Money Sources are the different ways a business makes money from its customers. Having more than one way to make money is good for staying strong and growing.

Different Ways Example

Microsoft makes money from selling software and cloud services. This shows why it’s good to have different ways to make money.

Main Assets

What You Need to Succeed Main Assets are the big things you need to make your offer, reach people, keep relationships, and make money. These can be things you can touch, ideas, people, or money.

Example of Using Assets

Google’s big search ideas and big data centers are very important for its work.

Main Tasks

What You Need to Do Main Tasks are the big things you need to do to run your business well. These tasks should match what your company offers and how it works.

Business Driving Activities

Spotify works on getting music rights and making a good, easy-to-use music service.

Quick Tips

  • Always check and improve your offers based on what customers say.
  • Keep looking at and making your channels better.
  • Work on making strong and lasting customer relationships.
  • Look for new ways to make money.
  • Regularly check your main assets and tasks to make sure they fit your goals.
  • Find and keep good partnerships that help your goals.

Important Partnerships

Working Together with Others Important Partnerships are about working with other companies, governments, or groups. This helps make your business better, safer, or get what it needs.

Partnership Success Example

Starbucks and Alibaba working together in China helps Starbucks grow and work better.

Costs

Understanding and Handling Money Spent Costs are about knowing and handling the money you spend to run your business. Knowing these costs helps with setting prices and staying healthy financially.

Managing Costs Example

Walmart keeps costs low by managing its supplies well and buying a lot at once.

Summary Notes

The nine main parts of a strong business plan are a full guide for new and old businesses. By knowing and using these parts well, businesses can make a plan that lasts and does well in a tough market.

Invitation for startups to schedule a meeting with investors on Investorgroup.com.

For the addicted readers, read on…

Simplifying the 9 Building Blocks of a Business Model

  1. Customer Groups: Who you want to sell to.
  2. What You Offer: The products or services you give that are special.
  3. How You Reach Customers: The ways you talk to and reach the people you sell to.
  4. Customer Bonds: The ways you connect with the people you sell to.
  5. Money From Customers: The money you make from each group of customers.
  6. Main Things You Need: The big things you need to make your business work.
  7. Big Jobs to Do: The most important work your business must do.
  8. Working with Others: The people and companies you team up with.
  9. Money You Spend: All the costs of running your business.

9 Types of Business Plans

  1. Store-Based: Selling in a physical store.
  2. Online Selling: Selling things on the internet.
  3. Free Plus Extra: Giving basic things for free, but charging for more.
  4. Regular Payment: Charging a regular fee for ongoing services.
  5. Chain Stores: Using a business idea in many places.
  6. Direct Selling: Selling straight to customers.
  7. Ads for Money: Making money from showing ads.
  8. Connecting Buyers and Sellers: Helping people buy and sell things.
  9. Making Things: Producing and selling goods.

9 Steps in a Business Model

  1. Who to Sell To: Deciding on your customer groups.
  2. Your Special Offer: What you give that’s unique.
  3. How to Connect: Finding ways to talk to your customers.
  4. Keeping Customers Happy: How you keep a good relationship with customers.
  5. Getting Paid: How you make money from customers.
  6. What You Need: The big things important for your work.
  7. What to Do: The main work your business must focus on.
  8. Teaming Up: Choosing partners to help your business.
  9. Managing Costs: Looking at and handling your spending.

Relationships with Suppliers

In the business model, “Key Partnerships” is about the relationships with people and companies that help your business, like suppliers.

Model Building Blocks

Model building blocks are the main parts of a business plan. These include who you sell to, what you offer, how you connect, keeping customers, making money, what you need, main tasks, teaming up, and managing costs.

Basic Business Model

A basic business model is how a company makes something good and earns money. This can be through selling things, giving services, or newer ways like regular payments or free basic services.

Typical Business Models

Typical business models include selling products or services, regular payment services, free basic services with paid extras, making money from ads, earning money by promoting others’ products, and expanding through franchisees.

Building Blocks in Business

Building blocks in business are the main parts that make up how a company works. These include the methods and plans used to make things, sell, attract people, and make money. They help in making and checking business plans.

Number of Building Blocks in the Canvas

The Business Model Canvas has nine building blocks. These are important for a full view of how a company works, from talking to customers to handling money.

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