What are the key elements of the business model?

A business model isn’t just a business plan. There are people who confuse the two, however business model is a broader subject and a business plan is a part of it. A business model is the functional representation of your business. It describes your product or service, it creates a road map to achieve customers and desirable sales, and it tells the future prospectus of the business.

There are thousands of people who have some product to sell, but they lack the strategy to be unique and hence nobody knows them. So, even if you have a completely different product like no other but you lack the ability to be unique then you will reach nowhere. Hence, this article will tell you how you can secure a strong business model which is innovative.

1. Record business resources

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Resources refers to any necessary factor which is important to achieve a certain goal or objective of a business. There are plenty of resources that need to be managed in business, and the business is a collective result of all these resources. These resources are classified as financial, human, educational and physical etc. Hence, recording your business resources is important in that you don’t go scarce of any resource. Business activities are highly dependent on these resources, and you can’t imagine a day without them. As a responsible business person, recording key resources is important, therefore document all the essentials of your business and ensure that you have them in adequate amount.

2. Lead generation

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Having a radical approach to generating leads is essential. As you need to provide your customers with a place where they can find you. Nowadays, businesses are flourishing with the use of the internet. The Internet is a new place to find customers and perform sales, and no business can survive without it. Hence, you must have an online identity so that the customers can find you and you are able to generate leads. Including smart ways of promoting your business on social media is the first thing you can do to get in the eyes of masses. Your followers will do the rest of the work for you, if they love what you offer. Be it your tiktok followers or Instagram followers. They are valuable to you always and they are a way of generating your leads smartly. And as a business have a blueprint of your followers, so that you know what to offer.

3. Develop value proposition

There are thousands of businesses in the market today, but we know the names of only a few of them. The reason is these few businesses have an ace in the ability to be unique and that is why they stand out from the rest. But what makes them unique? It’s the strong value proposition that they have. Value proposition simply means providing your customers with innovative products and services that they will find nowhere, and thus they have only you to come back every time. As a businessman you must ask yourself questions like, is your service is innovative or do you have a revolutionary product and why it’s better than your competitors? Finding an answer to these will take you close to having a strong value proposition. Once you get a defined value proposition, link each one to service or product delivery to remain in value.

4. Business partners

No business can survive alone in the market, as the essentials of the business come from outside. Hence, pick your partners precisely, your suppliers, advisors, marketing agents etc. These are essential to build and grow your business, so place your bets on the right people so that they make the road to success easy for you. Moreover, you can have a skilled and efficient team of co-partners who are experts in their field. So that they can bring their expertise to your business, in order for it to grow. When you have a team of smart people working in alliance then you can overcome any kind of externalities that might affect your business. Finally, in this way your business functions smoothly in alliance.

5. Room for innovation

While preparing a business model don’t make a mistake by thinking of it as static. Almost half of the business runs on assumptions, until you invite your paying customers. In business it is tough to tap every possibility as many things are out of our control and the business environment is dynamic. For example, government policies or laws and political decisions aren’t in our control but they highly impact the business. As we see now, policies have changed the way of performing business entirely from the past. Therefore, always leave a room for innovation, you must always have an idea about what you can do next and how it can be different from prior because a lot of things are unpredictable. Besides, have an ability to improvise, as it will strongly benefit you to shine your business in future. Business is always unexpected, so you must be ready with an action plan in case it goes beyond your strategy and innovation is the key to meeting any uncertain contingencies.


Creating your business model is exciting and challenging. Many a time you need to revisit the plans and strategies you made, so that you can twist and turn them according to the present requirement. Give a good time to plan your business model and think about as many possibilities as you can. This will ensure that you don’t miss out on any places and you have hold over every essential of your business. Moreover, rather than playing hard try to play smart when preparing the model. Include new and smart methods of carrying out business that takes less investment and more output. Spend on resources thoughtfully by deciding their worth and later impact. Thus, by including all these essential points you can prepare a business model which is unique, innovative, strategic and most importantly must be flexible.

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