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
  1. Cost of Sales (production)
  2. Sales and Marketing Expenses
  3. Services Required
  4. Personnel Costs
  5. 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.