Think Business Magazine November Issue | Page 44

Small Business Starting Small?–How to Build the Perfect Business Model Business Model By Bede Nesbitt [email protected] The first step in setting up a business should be to put one’s ideas down on paper in a format that can be easily understood by just about anyone with some basic business smarts. Once this idea has been documented, it can now be referred to as a “business model”, which simply put is a description of how one intends to make money. A good business model will include elements of economics, finance, strategy, operations and marketing but must be able to answer two key questions: Converting Innovation to Economic Value Growth Strategies Competitive Strategy Innovation Revenue Model 42 | THINK BUSINESS • NOVEMBER 2017 Value Proposition Value Proposition Value chain Structure