Before the business plan, before the needed funding comes in, before you approach investors, a business model is the most effective tool you can use. According to Master Your Business Model, this type of research tool has three specific elements you must focus on when creating your business model template.
Customer – Defining your customers.
Product or Service – What are you offering?
Ability – How will you offer your product or service?
Small businesses that focus on one product or a group of similar products or services can usually develop one business model. However, if you have various departments that offer unique products or services, your business model template must have sub-models that also answer the above three questions.
In the simplest form, once you define your business customers, product, or service and how you will offer your wares, you’ll be able to grasp how much money, investors, or capital will be required to start your business. The business model also helps you write your business plan in a more efficient way.