The 4 phases to validate a new business model

For every entrepreneur or initiator startups, there are always different stages of development of what emerges as a “cheerful idea,” a one-day to become a new model tested and reliable business face in the future.

All willingly or unwillingly, just building prototypes of new business we providing sophisticated new elements and up to the release. If we group them we would come out the following phases…

The 4 phases to validate a new business model1- DRAWING / SCHEME IN A BOOK: When has generated a high level of curiosity in which we feel we have to start working in this direction we usually take a sheet of paper or open a Word where we do a simple drawing describing in lines general accompanied our idea of our value proposition, strengths of the new model and the main sources of income. This is only an outline bird’s eye view of how and why that idea should end monetizing

2- BAG PREPARED OUR IDEA: Here I recommend going to more than KEDS known method. It is at this stage to define schematically all areas we have to consider to study the feasibility of the business. We will have to investigate everything that is needed to make the idea work. On the previous point should be added: Key Partners for our activity, the existing market potential, and relationship between the different areas of our business, our costs of implementation, channels and market segments…

And for those who wish to deepen the book in question he has been much talk and write is “Business Model Generation” Alexander Osterwalder

3- DEVELOPING OUR BUSINESS PLAN: At this point we must bring all our acts of faith and assumptions to a comprehensive study scenario there are many reported cases of templates or business plan. I recommend taking the structure of some of them as almost always it happens to us we discover we have green areas need more work. At today we spent hours and hours together a business plan that is sure to need surgery when we get an experience market therefore I would do is work those areas until we can build a minimum viable model. Do not waste too time to build a business plan of 100 sheets as today, if you are looking for funding, you do not invest in power points and first demonstrated and measurable results are valued more.

4- TEST MARKET: This stage, what it is basically to contrast all our theories in contact directly with our potential customers and we will definitely give all relevant data to make to change our business model. Worry about to get a large enough sample to allow you to take the appropriate conclusions. It is as reliable test our strengths, as we fight our weaknesses and see if our customers perceive us as we had supposed.

Throughout this process we usually follow some form or another. And it is good to follow an order because we will find unexpected that will make us change unlikely aspects beforehand.

This is one of the possible ways to sort and transform an idea into a viable business but whatshould not change is the final Focus: Our value proposition to end after all must be perceived by our customers as a well unmet need.

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