Business Model Innovation
Although business plans are important as they provide an outlook for the future of a business, a business model provides clarity on different aspects of the way a business operates and promotes products to the correct customers.
At agileering, we believe on focusing less on plans and more on models to understand what element a business need to focus on to make the day to day running fo the business more successful and meet customer needs and desires.
Scroll below to find out more about what makes a business model and how it can be applied.
What is a business model?
A business model is defined as describing and illustrating how a business creates, delivers, and captures value focusing on costs and revenue.
Essentially a business model translates your efforts into cash
Using a Business Model Canvas can be of a great help when understanding which elements make up a business model. Focusing on different elements ranging from business partners to cost structures.
As mentioned before, these text sections are multi-purpose. At this point on the page, we've highlighted the main features, introduced the product and presented some social proof. Many readers will still need a lot more convincing before they are ready to buy.
A text section like this is great for describing your product in detail and telling a story about the benefits it will bring to a customer. It is also a good idea to address potential objections that are on your reader's mind (e.g. "will this really work for me?") in text sections like this.
Case Study 1: Capture more cash from creative customer offers
This flight training company turns out highly respected pilots. Changing their offer from providing a pilot’s license to gaining that first seat in the cockpit created a whole new revenue stream.
They replaced head hunters as recruiting partner of choice for several airlines. Trainee pilots were delighted with a near guaranteed job.
Airlines value a pipeline of on-demand pilots trained to their exact specification while saving on the cost of poaching from other airlines.
What can we take from this?:
Creating an additional Value Proposition delivers extra revenue from essentially the same activities
Case Study 2: Make better use of resources by working smarter
This B2C Glass installer needed new premises but did not want to move. How could we do more work off the premises?
The answer was to change route to market and bigger volume jobs to Facilities Management Companies. Installers could work from vans at the client premises while the bigger job sizes reduced cost of sale, idle time between jobs and delivery time.
For the cost of ISO9001 and some phone calls, the company doubled its profits in the space of a year
What can we take from this?:
Changing route to market doubles profits from the same resources
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Who are we?
Agileering Ltd is an Innovation and Leadership coach and training provider covering the Thames Valley. It is registered at Companies House no 8688090