Would you travel 2850 miles, write a business plan on the way and start your new company in a garage?
Well a few famous companies started life in a garage but I’m talking about Jeff Bezos’s Amazon
When he started in 1995 his business model sold books online with a faster inventory turnover that allowed him to discount the inventory mark up versus traditional bookstores and compete on price
He expanded that model to other products successfully before he tried copying the eBay auction model. That failed!
So he experimented brokering other peoples products on his site and optimised that service and sold them alongside his own
In 2007 he used his capabilities and a talented hire to develop Kindle that accessed all titles on offer with a click!
Now he has a subscription model that accesses Prime video content but by also offering members enhanced delivery Prime customers buy more products on Amazon
His B2B venture into Cloud services in 2006 is a market leader
But what is a business model?
There are 4 basic parts
· The Customer Value Proposition (CVP)
· The Profit Model
· Key Resources
· Key Capabilities
The document below expands on each part
Do you have a clearly defined business model running your business?