Need definition, core value and competitive advantage: three aspects that you must prioritize to build a successful business model
This article (opens in a new tab) Author Liu Yiyou (opens in a new tab), for Presentation. Founder of Easy Presentation Workshop (opens in a new tab). He has more than ten years of experience in business presentations and is good at presentation structure, information visualization, strategic proposals and fundraising presentations. Thank you for authorizing “Content Hacker” to reprint. Thank you hereby.
[Why we reprint this article] Starting a business is not an easy task. If you don’t think clearly about the ins and outs of “money”, you won’t be able to convince potential customers and investors. Before engaging in content marketing or creating external presentations, if you do not first clarify your business model, it will only become a pile of gorgeous words and you will not be able to produce content that can truly impress the people you communicate with. Teacher Liu Yiyou extracted three aspects of business model review from his rich experience in corporate coaching and shared them with everyone.
Understand the essence of business model
What is the business model? Can it be eaten?
“The so-called business model is a business, the means and methods of creating revenue and profits.” This is the explanation (opens in a new tab) on Wikipedia.
[Alexander Osterwalder], the author of “Business Model Generation” (https://www.books.com.tw/products/0010567254 (opens in a new tab)) (https://en.wikipedia.org/wiki/Alexander_Osterwalder (opens in a new tab)), explains it this way: “A business model is a means and method that describes how an organization creates, delivers and obtains value.”
I also quite agree with the explanations of the business model by Mr. Zhang Zhongmou, chairman of TSMC, and Mr. Cheng Tianzong, former vice president of Foxconn.
To put it bluntly, a business model is the ability that allows you to make money and survive.
Make good use of tools to build and organize your business model
Speaking of tools for building business models, you can definitely find a variety of information on the Internet, including Business Model Canvas (opens in a new tab)(Business Model Canvas, also known as Business Model Jiugongge), Lean Canvas (opens in a new tab)(Lean Canvas), Empathy Map (opens in a new tab)(Empathy Map), Value Proposition Canvas (opens in a new tab) (Value Proposition Canvas) and other tools.
Business model canvas (business model nine-square grid)
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Use the business model nine-square grid to examine Gogoro’s business model
But the above is not the focus of the author’s discussion, because there is already a lot of information in this area. Logically speaking, with these tools and cases, it should be easy for everyone to follow the examples or imitate them, but why do so many people still fail? Of course, there are many factors involved, such as the global environment, political and economic policies, legal proceedings or personnel disputes, which may all be the reasons for “unsuccess”.
There are hundreds of business models, how to start and how to review them?
Three key aspects of business model
What the author wants to talk about is “the essence of business model”. When you want to start a business, take over the management of a business, or prepare to become a self-employed and achieve a career, whether you already have a business model or have not even thought about it, you can first think about the following three key questions.
Requirement Definition (opens in a new tab), Core Value (opens in a new tab), Competitive Advantage, these three are the aspects that the author will definitely observe and even inquire about first when assisting new startups, enterprises, and self-employed people.
“Business models can be imperfect, but they can’t be incomplete.” An imperfect business model can be strengthened, improved, or simply given up; but incompleteness often means overestimating one’s abilities, and only when one really has to face it does one realize that one is unable to cope, but resources have already been invested in the early stage, leaving one in a dilemma. If someone with good intentions takes the opportunity to intervene, the result will often be disastrous.
Requirement definition:
Is it an unsolved problem? Unmet needs? Experience not being offered? The more items it meets, the more likely it is a rigid requirement. Then let’s look at the scale. Is it worth the investment?
Core Values:
What is the benefit value of the provided goods, including products and services, to customers and users? What is the value of your own benefits?
Competitive advantage:
Competitive advantage includes three parts: competitive situation, competitive positioning and competitive threshold.
You must first understand the outline of the entire ecosystem (opens in a new tab) (Eco-system), such as upstream suppliers, downstream channels, customers, users, competitors and other details. With the outline, you can find your own advantageous positioning, but it is definitely not based on self-feeling.
Finally, there is the competition threshold. It is certain that it will be imitated, but how difficult is it? Can we find key factors to build high barriers to entry? Or seeking cooperation and participation is nothing more than a consideration.
Fintech Eco-system Example
From aspect to practical application
After these three aspects are clarified, other aspects can be supplemented according to individual needs, such as: company profile, market size, management team, financial planning (status) and product description, etc. From the Fundraising Presentation (opens in a new tab) (Pitch Deck) in the early stage of the startup to the later Sales Presentation (opens in a new tab) (Sale Kits), or a personal Business Model Proposal (opens in a new tab) (Business Proposal), the starting concepts are similar.
★ Photo Credit: Liu Yiyou (opens in a new tab)
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Vista Cheng speaks and runs workshops on AI workflows, writing and content systems for companies, schools and public agencies.
