My favorite tool when looking at the business model is, The Business Model Canvas. For now, we’ll just cover the key points discussed in developing a business model for your business plan.
Your business model should include the following;
- How you’re going to make money
- How you’re going to spend money
- Cost of Sales (production)
- Sales and Marketing Expenses
- Services Required
- Personnel Costs
- Admin and Overhead
Essentially, you need to understand if you can make money. Test out your sales/marketing plan and give it about nine months to kick-in and give you something of a return. As is that case with entrepreneurs, we tend to underestimate how long it will take for our dreams, ventures, and projects to come to fruition.