Developing a successful Business plan: business Models

The Growth of the Nigerian financial services industry over the last few years has expanded access to loans, equity, lease and other forms of investor financing for businesses in Nigeria. Banks, Investment firms, Private equity investors, venture capital firms and even angel investors are today eager to invest in viable ideas and businesses in Nigeria.

However they would not consider backing a company that does not have a well written business plan. A successful business plan, a document that conveys the exciting prospects and growth potential of your company is the heart of obtaining any form of financing.

A business plan helps sell the business to potential financiers and other backers. The plan could be for the start up of a new business, the development and marketing (launch) a new product, expansion of an already existing service to new regions or markets.

For an individual or company starting up a new business, launching a new product or service into the market or expanding an already existing product or service it must properly design and articulate a business model in the business plan.

A business model is a critical part of any business plan as it essentially articulates in form of a diagram how a business intends to make money.

From financial services, entertainment, healthcare, manufacturing to aviation new and innovative business models are threatening or even replacing established companies and conventional ways of doing business

With the ever increasing pace of competition, rapidly changing market dynamics, technological developments etc a business would need to develop a unique business model in other for it to consistently remain relevant.

Every successful business model thrives on innovation; it could be based on an unconventional marketing strategy, an innovative use of already existing technologies, a competitive pricing system, an exclusive corporate partnership etc
Whatever form it takes it is at the heart of driving sustainable profit for a business or organization.

There are six basic elements in a business model:

• Value Proposition
• Target Market
• Value Chain
• Cost Structure and Target Margins
• Value Network
• Competitive Advantage

These elements properly researched, developed and combined together in a business plan will significantly ensure that the plan receives favorable response from potential investors.

Next: developing a unique business model: the key elements.

Call me on 07031517266 if you need a unique business model for your business. We provide ideas development, strategic planning, and brand strategy development for smart businesses.