Once the business model is built, it is necessary to determine what profit the enterprise can expect. This can be done using the formula:
Profitability = Sum of all incomes – sum of all expenses
When developing a business model, you need to act wisely and think through several options at once that can potentially generate income. Forming several models is necessary to obtain an assessment of the effectiveness of various variations in the development of the benefit offer to the target audience.
It is enough to develop 5-6 combinations and work on their basis. You will have to do serious work, because you need to evaluate the effectiveness of each business model, calculate profitability, and identify the most profitable one.
Some entrepreneurs ig database make the mistake of making a conclusion about the income level of a given business model based on their personal opinion, possibly biased. It is necessary to make sure that the conclusions have solid grounds. A competent consultant from the outside can help with this. His help is necessary, because due to bias, you can lose all your capital.
Assessing the profitability of a business model
The components of a business model that are worth checking first are:
It is necessary to test the hypothesis about the presence of a problem among potential clients, revealing the quality of the offered service or product. For testing, it is necessary to talk to 2-3 loyal customers and "present them with the problem". It will immediately become clear whether it is confirmed.
It is necessary to create a "test" of a product or service that can solve possible problems. Then arrange a presentation of this prototype and, in the process of familiarizing the target audience with the subject of discussion, find out whether this way out of the situation is effective.
It is necessary to find out whether the target audience is satisfied with such methods of solving the problem. The answer to this may not be in words, but in deeds - the number of satisfied people is measured in completed transactions. If sales are low, then an adjustment must be made taking into account consumer characteristics.
After the presentation is complete, you should not immediately change anything in the business model. When you finish testing, you should immediately evaluate the change in income. Profitability should increase.
All experiments are conducted with the condition of providing comfortable conditions for potential clients. The selected channels for communication with consumers must be effective from the position of mass demand for the sold product or offered service.
Once you're confident that your product has enough demand to generate a