Business startups model

Business startups model

Business startups model has proved useful to the business entrepreneurs both in an existing and in the startup. Alexander Osterwalder developed it to conceptualize of a wide range of business models. The business model canvas should be presented in a visual chart clearly describing the business infrastructure, customers, financial capability and the products traded in the company (GENADINIK, 2018 p.11). Infrastructure is based on crucial resources evaluation which can create value to the customers as well as identifying on the partner network to help the enterprise to reduce the business risks. On the customer notion, an enterprise should be precise on the clients whom they intended to serve. Such requires segmentation to allow the business to reach a large number of customers with different needs. The company’s finances are vital in business canvas model since it will enable an enterprise to develop cost structure. A good business venture structure should be cost and value-driven.

 

The business model innovation process is a crucial part of the development of either a startup or implement factors which can heighten an ongoing business. In the actual sense, it is perceived as the map and the tool to which the business development can be engaged. As a map, it provides a lead on the events and the difficulties at the point where the startup business events and activities are likely to face (Lenssen et al., 2013). At this juncture, it opens the door for the planning team to have a tight grasp in sustainable at the point where the functions and the endeavours of the business can be managed. On the other hand, as a tool, for business at the initial stage, it is employed in ideating planning at the instance the different phases an entity will engage before its progression. This aids in the pointing out of business problems, and therefore it acts as a base at which it can be customized to achieve particular wants traded in the company. 

The business model innovation framework is paramount in the business model execution formulation. It engages the addition of value proportion to the functionalities of the business. For example, it facilitates the company to map out its framework based on the infrastructure of the enterprise. This, in actual sense, attached to the resources existing because it consolidates the basis through which the enterprise can grow if it existence already or the beginning gravity of the infrastructure to be attained for the initial stage. It further enables the connection between activities being handled by the enterprise. For instance, the entity should be in a position to bridge on the essential elements which are needed to give a value addition. Withal, keeping in check customer relationships and establishing the earning of the revenue and the marketing of the products. It brings out the entities engaging on the diverse responsibilities in an organization. However, in some cases, it needs the beginning of some cases. As such, the entity has to come up with the person who should execute forth sale and financial, marketing, market analysis and management of the process, among other responsibilities.

 

New business activities, as well as an existing business, are generally affected by the technology due to its dynamic nature. This process is viewed as accelerating returns since the business growth is usually predicted based on the advancement in the level of technology. The disruptions in which technology may have on the business startup include rapid changes in which it may have on the production. It may lead to either an increase or decrease in the substitutes of the product or its performance. Technology is also associated with an increase in economic improvement indicators. The number of profits and the gross domestic income related to the business can be identified through the disruptive nature of technology to business growth. People engage in business activities intending to better their lifestyles. The unsettling nature of technology enables them to realize the magnitude of change involving their way of living through the development of comparative advantage. The utilization of technology in business model innovation for the startups in business is imperative for value prepositions such as the virtual assistant on the webpage (Giardino, Wang & Abrahamsson, 2014). It is seen as an enabler customers value delivery and the execution of a useful business model. The traditional one is outdated, and thus, the use of technology enables entrepreneurs to development of the business models, which are cost-effective and enhancing customers.

 

Entrepreneurs have to undergo various stages before the business becomes well established. Primarily, they outline the business opportunity of an enterprise. It is based on the demand and the lack of supply in the industry. Ideation and experimentation involve the development and testing of the ideas in which an entrepreneur wants to establish (CLARK & HAZEN 2017 p. 75). For example, if one desires to carry out car business, one has to have ideas on the models desired but not available in the market. The business model generation involves the tools in which the company will be based upon and virtual development of the map. For example, one will outline on the infrastructure, finances and customers and how the entire framework can be linked in the business. The resources acquisition part in the model is based on the development of a manner through which the resources required can be sourced, how it can be used and also revenue expected to be generated.

The management and the execution framework should be based on how the business will be coordinated. Questions like who will run the business, when should it be done and the place for its execution should be drawn.  The methods and tools in the entrepreneur cycle are used in designing the actual setup needed in the execution of a business. It involves design thinking, which is based on the overlapping spaces. One has to have inspiration in terms of problem or opportunity for starting an enterprise. The ideas based on the industry and its manner of implementation should be developed clearly. The problem solution should be based on the implementation of the idea after its generation and satisfaction of market deficit. In the business model, one has to be clear on the value chain analysis since it provides a framework through which valuable activities can be recognized by an entrepreneur, differentiation advantage and issues such as cost are essential in this part. This facilitates the competitive advantage of an enterprise. The primary tool in the life cycle of an entrepreneur is the customer road map. It is a mechanism used in tracing experiences of the clients as they engage in the business. It highlights the areas that an innovator can improve and what are the low or high moments of the customers in an entity.

 

The business model canvas guides the entrepreneurs through the various vital components used in devising of the business model. As such, it brings about a base through which business activities interlink and interlock each other (Iliashenko, Bikkulova & Dubgorn, 2019). The model is viewed as a mechanism which focuses businesses on the strategic elements which are essential in an entity. Therefore, it helps in the building of a company comprising of the necessary parts required in production. Its speed and agility nature is mainly for the concentration of quality needed rather than capacity. It is concerned with determining valuable inputs to be used in the development of business. The common language advantage of the business model canvas is that it provides a reference point through which an entrepreneur can use in gaining feedback concerning the various constituents of an entity.

On the contrary, the model has shortcomings. It is only suitable in innovations and sustaining of business endeavours which are already functioning. This thus shows that one cannot apply the model in startup business activities since it covers a wide range of factors which cannot be managed at ones by businesses. Similarly, the model cannot be used for comparison purposes for different industries. It was designed to deal with the business activities of a particular endeavour.

 

Business model canvas is a virtual description of business funds, infrastructure, customers and the products. It is based on the innovation framework which outlines on the map and the tools in which an enterprise deal or plan to deal with ((Iliashenko, Bikkulova & Dubgorn, 2019). In business innovation, the map outlines the challenges in which an enterprise may face and thus, issues to do with methods in engaging in sustainable business should be developed. Regardless of the clear outline in which business model has, it has been affected by technology in its operation. This is called disruptive technology. It has led to an improvement in the economy and rapid capabilities of the business performance — such effects on the current model development or maintaining. Currently, people have developed software and present their business models through the webpage to enhance their sales. The entrepreneurial cycle is manifested various tools and methods for its efficacy.  They include customer road map and value chain analysis, among others. The model has advantages such as it enhances the focus of an entrepreneur and their speed and agility.