Modeling a business can be straightforward or extremely complex, depending on what type of business you're looking at. If you're designing a new drug, then chances are you'll have a very different model than a street vendor. There are some basic issues that you need to have though, regardless of your business:
- What are your sources of revenue? Think big. Think of as many opportunities as possible to provide value and get paid.
- What are your primary expenses? If you're a web jockey, you may not need an office outside the home. If you're manufacturing large parts, then your cost structure will be different.
- Who are your partners? Partners can help you get traction in the marketplace and can provide funding, marketing support, sales, customer introductions, and more. Never think you have to go it alone. Only idiots do that.
- What are your competitive advantages? What separates you from others, and do clients believe your story?
Stay tuned for more on this thread.
