Category Archives for "Business Models Essentials"

Jul 31

Business Model Examples

By Eckhard Ortwein | Business Model

business models examples

Business model is the best top-level view tool for your business because it allows you to have all core elements in front of your eyes. It describes how your business makes money and explains how you deliver value to your customers at an appropriate cost. Business model is important for both emerging and established companies because it shows where the business is headed and how it will get there. The goal of creating a business model is to outline a strategic vision that objectively assesses the possibilities and challenges of a specific business in a summary form.

Business model development is a crucial part of formulating a meaningful business strategy. The good news is that you don’t have to invent an entirely new business model to start a business. In fact, the vast majority of businesses use existing business models and refine them to find a competitive edge. In this article, we talk about different business model examples and explain how to make a business model for your company.

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Jul 29

TAM, SAM, and SOM: fundamental market size metrics

By Eckhard Ortwein | Business Models Essentials

tam sam som

When you are starting a new business and are calculating its profit potential or are setting a revenue goal for your company when making a business plan, it’s crucial to root these figures. That’s why you need to perform a market analysis and assess the market potential for your products and services. In other words, you should start from TAM, SAM, SOM. These are the metrics that investors look at when making their investment decision.

Wondering what these abbreviations mean and why they are useful to investors when assessing an investment opportunity? Keep reading.

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Jul 18

What Is the Business Model Canvas and How to Use It

By Eckhard Ortwein | Business Model

Business model canvas

Business Model Canvas is a strategic management template for developing new business models or documenting and improving the existing ones. It’s a visual chart that helps companies align their activities by illustrating the potential trade offs. This visualization method is applied in leading companies and startups worldwide and you can also use this great tool to improve the focus and clarity of what your business is trying to achieve.

You don’t need tens of pages of a traditional business plan to understand the intricacies of your specific business. Instead, you can create the Business Model Canvas that will explain the core elements that drive your business in a single page. In this article, we’ll dive into details of this visualization method and compare it with Lean Canvas template.

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Jul 18

SWOT Analysis and its Use in Business Planning

By Eckhard Ortwein | Business Model

SWOT analysis

A SWOT analysis is a powerful tool that can help you develop a strong business strategy. Doing a SWOT analysis doesn’t take much time, but it allows you to think about your business in a new way – discover new opportunities, manage and eliminate threats. It’s actually a plan of action for moving forward, in the context of the current situation of your business in the changing environment.

In this article, we will explain what a SWOT analysis is, and give you some tips on how to do a SWOT analysis.

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