Category Archives for "Business Model"

Aug 01

Business Plan: getting started

By Eckhard Ortwein | Business Model

business plan examples

Every business needs a business plan. It’s a document that describes the future of your business and describes what you plan to do and how you plan to do it. But it’s easy to confuse a business plan and a business model. In this article, we’ll explain what a business plan is, why you need it, and compare business model vs business plan to help you understand the difference.

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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 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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Dec 10

The SaaS Business Model – double revenues with incremental improvements

By Eckhard Ortwein | Business Model

LeanCase WinningbyDesign

The SaaS Business Model and the power of incremental improvements 

This post illustrates how incremental improvements along the Customer Lifecycle of a SaaS Business Model can result in massive changes of outcome for revenues as well as profitability.  In Customer Lifecycle models  revenues are not the sum of deals, but the product of conversion and expansion rates, creating "multiplicative" instead of "additive" impact. We describe which time, conversion, volume and financial metrics are required to capture all assumption for the business model. Learn how you can more than double your revenues by improving key metrics only between 10% and 15%.

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Sep 29

Unit Economics – Do you have a viable business model ?

By Eckhard Ortwein | Business Model

Unit Economics: Is Customer Lifetime Value > Cost of Customer Acquisition?

This post provides Entrepreneurs, Business Managers and Investors provides a simplified model and an introduction to Unit Economics enabling you to validate if the business model for any SaaS or subscription/recurring revenue business is viable.Unit Economics answer a key business question:  Is the Lifetime Value of a customer significantly higher than the cost to acquire a customer? We also have a look at various factors, how they can impact unit economics and how you can check your unit economics in 7 steps. Why is this so relevant? Only if you get your unit economics right, you can invest funds into scaling your business. 

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Sep 16

What is a Business Model ?

By Eckhard Ortwein | Business Model

What is a business model

What is a Business Model and what turns a Business Model into a Business Case?

A great business model describes your business logic and supports it with meaningful numbers and metrics. However, most business model approaches are very thin (not even lean) when it comes to numbers and metrics. They don't lay out activities to quantify assumptions or even suggest meaningful benchmarks. So, what is a business model? This post proposes a business model framework taking the best elements of a few approaches and allowing you to capture your assumptions in a structured manner. We describe what turns a Business Model into a Business Case and how you can easily quantify your assumptions. Discover a completely new way of how to create a business case.

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