Surely you already have different business ideas that can be turned into profitable ventures. Once you define which one you prefer, and conceptualize it as a business, it is time to plan how to carry it out.
Putting together a profitable business plan may seem like a very complex task, but using the so-called Business Model Canvas everything is made easy! Are we going to meet him?
The Canvas Model
The Business Model Canvas is a methodology that allows you to create a business plan in a few minutes and achieve a global vision of your idea . To do this, it takes into account nine fundamental pieces in the development of an enterprise and relates them to each other in a strategic way.
The same creator of this model, says that the best way to describe a business is to divide it into those nine basic pieces that reflect the logic that a company follows to generate income . These pieces cover the four main areas of a business: customers, supply, infrastructure and economic viability.
So, through the Business Model Canvas , you will be able to discover in a few minutes if your business idea is sustainable when it comes to taking it into action. We tell you what are those nine essential elements or pieces that you have to analyze:
1- Value proposition
At this point it is key to detail the characteristics that make your product unique . In other words, why are you innovative? What sets your idea apart from the competition? Maybe the product is the only one of its kind on the market? Maybe you have an eco-friendly shoe brand and that will be your hallmark: alternative materials to leather for consumers who want to take care of animals and the environment.
2- Key partners
Here you have to describe those strategic contacts: the trusted providers you chose, a business mentor who was recommended to you and who will accompany you during the development of the company, your potential partners or an expert for branding your brand.
3- Key activities
They are the actions you have to do to offer your product, the necessary strategies that will give value to your brand. This is where the marketing campaigns come in (organic or paid, exchanges, co-branding, giveaways, email marketing , etc.).
4- Key resources
You have to identify the most important resources that you will need for the development of your business idea: from the amount of money necessary for your marketing campaigns, the salaries of the people who will participate in your business, to the computers for each member of your work team.
5- Relations with clients
What kind of relationship are you going to establish with your brand’s audience? This can help you convert your followers into potential customers. It is also important that you specify what effect your business will have on your customers.
6- Customer segments
Who is your target audience? Where do you live? How old are you? What are your consumption habits? Why are these people going to buy from you and not from your competition? This information will help you develop your messages better.
Here you have to define what communication channels and advertising strategies you are going to implement to spread your business. Ultimately, how you will present your value proposition and develop the branding of your brand .
8- Cost structure
To describe all the expenses involved in developing your business idea, it is essential to plan a cost structure (both fixed and variable). In this way you will be able to optimize and minimize all that you can to create an efficient and scalable business model over time.
9- Sources of income
How are your clients going to pay you? What forms of payment will be the most used by your target audience? Define in advance how to safely charge for your online sales.
We suggest you carry out this exercise in your business from the following triggering questions:
Strengths of your brand
What are the skills that distinguish you as a business owner? In what types of activities are you most efficient? How is your brand different from its competitors?
Opportunities in the environment
What is that need that the competition is not meeting? What real or potential situation in the environment is favorable for the development of your brand? What factor is most accessible in the market for the development of your brand?
Weaknesses of your brand
In what activities do you consider that you are less efficient? In what aspects do you give up resources for the development of your brand? In what attributes that your competition has, you cannot be competitive?
What real or potential situation in the environment would harm the development of your business? What characteristics of the market are unfavorable for the positioning of your brand? What factors of production would affect your profitability in the event of a price change?
After you have answered these questions, you are ready to:
- Use Strengths to Seize Opportunities.
- Use Strongholds to reduce the impact of Threats.
- Minimize Weaknesses by taking advantage of Opportunities.
- Minimize Weaknesses and avoid Threats.
Where do I sell my products?
To finish planning your business strategy, it is key that you define where you are going to offer your products. For this reason, we share the different options for sales channels so that you can decide which one suits you and your audience best:
– Online channel
We recommend creating your own online store with your brand identity.
That will give your potential customer greater security and confidence when making the purchase. After you have your ecommerce running, the ideal is to integrate it with other online sales channels, such as Instagram Shopping , Facebook Shops and WhatsApp for Business .
This will help you increase the turnover of your business and improve the positioning of your brand in the online world.
– Offline channel
This business strategy is the most classic and you can carry it out in different ways. Through a store on the street, a showroom (exclusive to your brand or shared with others – this can help you lower costs -), or some fairs that share the same values as your brand.
Keep in mind that one sales channel does not exclude the other, on the contrary, the two together can further enhance your business. For example, you can integrate them and offer your customers the possibility of buying online and picking up their order in the physical store.
Undoubtedly, this will represent a great differential for your brand.
On some occasions, and despite the efforts invested, it may happen that the businesses do not turn out as profitable as they were planned from the beginning.