Ideas are the lifeblood of a business. Most successful startups always become big because of a good idea and not because of surplus funds.
|4||Relation with Customers|
|10||Scalability and Potential for Automation|
Table of Content
1. Value Proposition:
A value proposition is a promise of a value a company guarantees to deliver to its customers. It is basically a product, service or feature that makes the company attractive to the customers and investors. It summarizes why a customer should buy your product or use your services. A value proposition should be directly communicated to the customers via the company’s web site or other advertising mediums.
2. Customer Segmentation:
Customer segmentation is dividing the customers into different segments like age, gender, geography, interests and salary.
Customer segmentation can help you:
- Develop effective strategies.
- Provide better customer experience.
- Better Ad targeting.
3. Distribution channel:
Distribution channel is the path through which goods and services travel from the vendor to the consumer level.
The distribution channel should be minimal as far a possible because it helps in getting the goods faster and at a lesser cost as there will not be many middlemen involved.
This will help in increasing the company’s profits and customer satisfaction.
4. Relation with Customers:
Cash is king but the customer is God. A satisfied customer is the best business strategy of all. Building good relationships with your customers is very important as it helps in understanding your customers’ needs.
Providing what your customer needs will increase the profits of your business. This will help you gain more returning customers, referrals and more profit in the process.
5. Cost Structure:
Cost structure is the fixed costs and variable costs that are required to operate your business.
To maximize profits, businesses should find every possible way to minimize costs. While some fixed costs are vital for keeping the business running, a financial analyst should always review the financial statements to identify expenses that do not provide any additional value to the core business activities.
6. Key Activities:
Key activities are basically the activities that a company must perform to succeed.
For example, if your business focuses on the production of a product, you should focus more about the customer needs and produce accordingly to satisfy the customer needs. This will also help in increasing the net income of your business.
7. Important Resources:
Key resources are basically describing the important assets of a company. They are required to make a business work. Every company needs them and it is only through them that companies generate income and value proposition. Key resources can be financial, human, physical or intellectual.
8. Your partners:
Team work makes the dream work. It’s not all about the money that a partner brings in. Potential partners must be trust worthy. Good friends who share common values and responsibilities make good partners.
Look out for partners who have the abilities that you don’t have. This will help in making better decisions as the knowledge base is more diverse. Remember that the beautiful rainbow is made out of different colors and same colors.
9. Revenue Streams:
A revenue stream is basically the income of a business. Your net revenue is calculated as the gross revenue minus discounts or returns you had during that year.
In business, a revenue stream is generally made up of either recurring revenue, transactional based revenue, project revenue, or service revenue.
10. Scalability and Potential for Automation:
It is important to keep up with the times and work towards what is best for the business. Automation helps in higher production at lower costs, more efficiency, better quality, more safety, and it helps in reducing the unnecessary expenditure of the business.