Using the example of a Hamburger Stand, the episode demonstrates the simplicity and power of a one-sentence business model can have on your business. Topic covers key elements for a successful business model (and business) and how to plan activates from the model.
My definition of a business model is simply that place where the customer gives you money for something offer. For example, let’s use the example you want to open a Hamburger Stand. It’s your dream. The business model is: You give a hamburger to a customer, customer gives you a 5- dollar bill. That’s it. The place where customer gives you money for a product or service. For Amazon book’s, the customer finds a rare book and pays for it. Amazon ships the book to the customer.
Using the business model as a starting point, you build and improve your business in a focused manner, that is, on the product and customer.
Most Successful Business Models are:
- Understandable…as in by elementary school kids.
- Sustainable…meet a customer’s need or want.
- Doable, that is able to carry out it.
- Repeatable…you can do over and over.
Elements to Creating a Long-term Business Model:
- Fair Exchange
- Repeatable Operational Process
- Customers Know and Like You