Effective Internet Business Models
By Tasha Beauchamp
Create an effective Internet Business Model by asking yourself the right questions.
As part of the exercise of creating your business model, with an eye towards both running the business and attracting investors, it is quite helpful to really ask some penetrating questions to get to the heart of the business. With thanks to Tasha Beauchamp of “Let’s Collaborate”, here is a good starting list:
1) What problem do you solve for your client? (Preferably a problem that is costing them money)
2) How is your service/product a unique solution?
3) How can you demonstrate a return on investment (ROI)?
4) Who is the purchaser? Is the user of your product/services someone different? How are their needs the same? How are their needs different?
5) How much is your average sale?
6) How many more “widgets” (average sale of your client’s product/services) must occur to pay for your services?
7) How many sales do you need a month (year)?
8) Do you need to keep finding new clients or can you “mine” existing clients for more projects? For example, do you have add-on products to sell? An annual service contract? Some form of residual income?
While this list won’t guarantee you a great business model, it will help you become more realistic about where you business stands in relation market. In the end, it’s all about the market and who is going to buy your product.