We had been seeing new entrepreneurs who were taking a place in the presentations and meetings to express ideas with lack of experience and unbeneficial projects. Having said that, they have started to give comprehensive knowledge professionally and extraordinarily today.
In other words, I can say that there is at least an improvement in terms of presentation compared to 3 years ago. However, in many presentations, entrepreneurs explain their business model unsatisfactorily as well inadequately. When we ask some detailed questions, we realize that the business model is only imaginary or based on data and facts that are not yet available.
First of all, we need to define what the "business model" we use everywhere means.
Business model: The logical basis for an organization to create, deliver and retain value.
Here, the organization is our initiative that we focus on. Value can be created by two things for its users: solving an important problem or providing a new benefit. So you should immediately ask two important questions:
1) What problem are you solving?
2) What do you provide a significant benefit to?
There are resources you will use to provide this value. You can read a business model article on this subject from Mohab Ayoub here. In this article, I will talk about what kind of mindset you should prepare.
When thinking about your business model, you should definitely have a pen and paper at hand. You won't get anywhere by arguing in your head. Prepare your whiteboard, pen, post-it, and evernote first. Make sure to record your sketches with the date and time. You need to closely monitor the developments in your business model.
First of all, ask yourself these 3 questions about your product;
1) Why would they buy it? – This may actually be the same question as the problem you solved or the benefit you provided above. What reasons might people have for buying your product? Rank them.
2) Why would they buy from you? – What were people doing when you didn't have your product? (Don't say "my product is very brand new, nobody knows!" You may not like it, but it's still very important that you consider what people can do without your product.
3) Why buy now? – Actually, while the other two questions are partially easy to answer, I think this is the most important and overlooked question. Yes, you can have a great product and team, but if you want to change users' habits, it's not that easy (it's not easy at all). That's why your solution or benefit must be able to solve an urgent problem to change habits as quickly as possible. You should think a lot about it.
Then think about your product and become its imaginary user. As an example: let's take a mobile application: Just take the smartphone in your hand and start using your application that you don't have yet. What command did you give in the app? Where did the information go? Where is it hiding? Who will use what information? Which platform will it use? If there is an error, how will it be fixed? How soon will it be fixed? To whom will the payment be made? From whom will the payment be received? How will the payment be? Who will be billed? Who will bill you? Who will call or email whom? Who will be responsible for which screen? What should be on the screen?
As a result of your product;
– Solves a fundamental problem or provides a new benefit.
– If scalable,
– All processes can be managed and executed
It means your business model is ready to evolve.