The Kylie Jenner’s and Cara Delevingne’s have got nothing on the Naomi Campbell’s and Tyra Banks’s and the Naomi’s and Tyra’s have got nothing on the Business Model. This is especially true in the context of being a fashion business owner.
What is a business model and why is it even relevant?
Architects build models before they go about erecting property in order to visualize and evaluate possibilities of success. A business model is similar, you take into consideration all dimensions necessary to make money from your business. It provides convincing reasons that the strategy you have in place can deliver value to the customer in a profitable way. It has to make sense, it has to be logical.
The model touches all dimensions of business, i.e. 1) customers, 2) offer, 3) infrastructure, 4) financial viability. It’s relevant because it nicely packages how to go about reaching your objectives and also provides clarity on the areas you need to focus on and which to discard.
What steps can you do at this present moment to build a business model? Get together with your team and/or by yourself (however, two brains or more are better than one); get a piece of paper (or Smartphone) and answer the following questions:
- Who is my customer?
- Who am I creating value for? Who are my most important customers?
- Which problem am I solving for the customer and/or which customer need(s) is my product/service attending to?
- How do I deliver this product/service offering to my customer?
- which communication, distribution and sales channels do I use? Why?
- What’s my customer relationship dynamic? How have I put this dynamic in place? How do I maintain this customer relationship dynamic?
- What is the income I/we receive in exchange for the value offered to customers? What does it look like – in detail? i.e. How do customers pay, What do they pay currently for something similar, etc.
- What kind of assets (e.g. people, manufacturing, partnerships) do I need to provide the offering to my customers?
- Which key activities do I/we need to carry out that’ll bring about the value that the customer is willing to pay for and that will bring about the required revenue to make the business profitable?
- Who are my/our key partners? Do I perform all activities needed to make this business model work or do I outsource some activities to somebody else who can do it better and/or cheaper?
- What does all this cost? Which are the most expensive costs? Is it viable?
Answering these questions will provide a blueprint for how to implement your strategy.
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