Business model development depends on a certain key factors that needs to be followed in order to make the business successful. The success of any trade would depend on the number of high value customers and offering the customers a significant value in addition to maintaining significant margins. Here in this section of the article we would focus on the three most important aspects towards developing a successful trading model. What are the do's and do not's that need to be followed for development of a trade model?
The main DO'S Of Business Model Development
1. – Firstly, you should focus on acquiring high value customers. By high value customers we do not mean customers who are rich and wealthy but those who can be located easily and are always willing to test your products in addition to helping you generate good transactions for meeting the sales and profits. This practice is better known as "market targeting".
2. – Secondly, in order to get steady and long term success you should be tactful in promoting your products and / or services well by offering significant incentives and value to the customers. This practice is better known as "overdelivering". You can do this by giving them unique advantages in the form of benefits and additional features. You should offer low prices, wide range of products, customization facilities and a speedier delivery.
3. – Thirdly, you should consider delivering the products or services but keep high margins. There are a number of ways by which you can maintain high margins. You should emphasize on creating very high quality products that have unique features with little or no competition so that the customers allow you to charge more for the product. You can even use a lean manufacturing process and offer the customers more auxiliary products but should restrain yourself from increasing the cost of the product. This practice is better known as "unique angle selling".
Now that we have discussed about the three most important key factors towards great business model development, you would certainly like to know what the points that you should avoid so that the business is not adversely affected.
The main Do Not's Of Business Model Development
1. – Do not overlook the profitability of your business. You should not only focus on the initial start up cost of the business as funding a business does not end once the business is established. Instead it begins with the returns you get from it. You know you have created a successful business model development if the net Return On Investment (ROI) is more than 25% each year.
2. – Do not overlook the quality of your products and / or services. You should also never compromise on the quality of the products and / or services you provide, and should always maintain a good position in the market by delivering only very high quality stuff to your customers. You should be aware of the competitors who could take over your business easily by using alternative technologies.
Proper business model development requires you to be alert and cautious all the time as well as being innovative so that you can line up new product ranges and services.
