The way in which a company creates a compelling value proposition for customers, business consultant Jeff Nock outlines business model development basics.
Most commonly known as business model development, the process, according to business consultant Jeff Nock, involves creating and sharing a value proposition that’s attractive to customers across the board. Delving deeper into the process as he outlines more closely what’s involved, the leading business expert, who’s based in Iowa City, Iowa, defines business model development and shares a number of tips for developing a business model in the first instance.
“In the simplest sense, business model development involves the creation and distribution of what we might call a compelling proposition, value-wise, that customers will be happy to pay for,” explains Nock, “but at a price, importantly, that still yields an appropriate and acceptable profit for the company or organization developing the model in question.”
Business model development is especially crucial, Nock says, when exploring or anticipating the launch of a new product idea or service. “Further to value proposition and profit, it’s vital,” he explains, “to ensure demand, first and foremost, and, also, to have the necessary distribution channels and other key infrastructure either prepared or already in place.”
Thankfully, Jeff Nock reveals, there are a number of helpful tips that can help when tackling the business model development process. “Start by defining a target market,” suggests the successful Iowa City-based business consultant, “and consider how you might be able to further segment this market moving forward.”
Next, he says, define marketing and distribution channels, before carefully considering revenue streams. “How, for example,” asks Nock, somewhat rhetorically, “are prices being set, and how is revenue ultimately collected?”
Any well-developed business model will also consider all possible resources which may be required for success, including human resources, financial resources, suppliers, vendors, and more, according to Nock. “Ask yourself, what level of investment will be involved, financially?” suggests the expert. “Also consider costs tied to training, branding, and maintaining vital technologies, for example, too,” he adds.
Finally, and perhaps most critically, Jeff Nock stresses the importance of identifying what a company plans to do to deliver on a competitive strategy front. “How does the company differentiate itself against and from the existing competition?” he asks, again somewhat rhetorically. “If it isn’t immediately evident,” adds Nock, wrapping up, “take a much closer look and consider all of your options, even if it takes numerous attempts to get things just right.”