Tips for Finding the Right Business Model

Many people want to have a business, but in fact, many don't know how. Creating a business model is not as simple as making a business plan or determining which products/services to sell. Building a business model means mapping how you can sell and provide valuable goods / services to customers. Where do business ideas come from and how do you measure progress? This is where you need a business plan.

Business plan is like an art. Businessmen are invited to imagine then execute them. Sometimes we have imagined what the business idea is, or the business opportunity has been seen, but that's just an idea, still in our head. How we execute it, that's the art. Business plan is an art, we first imagine, then we choose how to execute it like.

Business plan is important as a pattern, fuel, and direction for running a business. However, a business plan alone is not enough to make a business run well. Must be accompanied by a competitive strategy. What is competitive strategy? Competitive strategy is how we are better than our rivals.

How to to find the right business model? There are 2 ways to find the right business model, namely The Normal Way and the abnormal way (The Unorthodox Way). For the normal way, this is done through creation and production and marketing sells. Through creation and production, business people can list activities related to production such as designing, buying raw materials, and the manufacturing process. Then marketing and sells, we make a list about activities related to sales such as finding and reaching consumers, offering special prices, distributing products or providing services

The second is through the abnormal way / The Unorthodox Way. The Unorthodox Way methods are also known as product innovation. To do this, there are elements of the Business Model Canva or an organized way of presenting assumptions about key resources and activities. These elements include what differentiates the product we want to make from other products (value proposition), target market (customer segments), how to relate and communicate with consumers (customer relationships), how to promote (channels), the costs required ( cost structure), and the price set, whether the cash flow is sufficient to run the business.

In order to change the business model in the midst of a crisis, there are several things that need attention. Such as changing or adding to the composition of products and services, delaying important decisions, changing people who make decisions and changing incentives in the value chain. There are several things that must be considered in restructuring the business model, especially in the midst of a pandemic. One of them is paying attention to government policy. After observing government policies, entrepreneurs should be able to make choices according to their business assets. Look at the assets we have, and what can they produce?

In addition, entrepreneurs must also take into account good governance. During this pandemic, many businesses lay off employees or cut wages. Actually, we could think of new ways. For example, shifting from fixed salary to target salary amount. Initially the employee's salary is monthly, then they get their income according to sales, because everyone has to sell. That's an example of adapting a business plan and model.