1.
Building A Business
Model
Week 3
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23

2.
Fundamentals Of Business Model
Primary
Product
Service
Trade
SECONDARY
Brokerage
Subscription
Marketplace
Ecosystem
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23

3.
Primary Fundamentals |PRODUCT|
 This primary archetype focuses on the development of a
tangible artifact that can be bought and sold for a one-time
cost. The product is usually consumed either because it
provides personal entertainment, or because it offers some
gain of efficiency and can be acquired for less cost than hiring
a services company to perform an activity.
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23

4.
Customer Discovery
The Customer Discovery process goes through four phases:
• Stating the hypothesis (Problem statement)
• Testing the hypothesis (Business Idea)
• Testing the product concept (Conducting an experiment to test the hypothesis)
• Evaluating customer feedback and, thus, determining the next steps.
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23

5.
Business models for startups
 Revenue Model
 Subscription Business Model
 Freemium
 Direct Selling
 Affiliate Marketing
 Software As A Service
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23

6.
Define Your Assumptions
• The problem you addressed is a problem
• The solution you propose will solve the
problem
• The market you plan to target has this
problem
• The market you plan to target will be willing
to pay for your solution
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23

7.
Revenue Model
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23

8.
Revenue Model
 Who Pays (Find customers)
 What's Paid (what work you should do to get paid)
 For What is Paid (identify the value)
 How are you paid (find the revenue stream)
 How much is paid ?
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23

9.
Subscription Business Model
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23

10.
Freemium
Freemium, a portmanteau of the words
"free" and "premium," is a pricing strategy
by which a basic product or service is
provided free of charge, but money is
charged for additional features, services, or
virtual or physical goods that expand the
functionality of the free version of the
software
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23

11.
Freemium
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23

12.
Direct selling
 Direct selling consists of single-level marketing (in
which a direct seller makes money by buying
products from a parent organization and selling
them directly to customers) and multi-level
marketing (in which the direct seller may earn
money from both direct sales to customers and by
sponsoring new direct sellers and potentially
earning a commission from their efforts).
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23

13.
Affiliate marketing
Affiliate marketing is a marketing
arrangement in which affiliates receive
a commission for each visit, signup or
sale they generate for a merchant. This
arrangement allows businesses to
outsource part of the sales process.
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23

14.
How to Create a Business Model
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23
Identify your audience Define the problem
Understand your offerings Document your needs
Find key partners Set monetization solutions
Test your model

15.
Identify your audience
 Most business model plans will start with either
defining the problem or identifying your audience
and target market. A strong business model will
understand who you are trying to target so you can
craft your product, messaging, and approach to
connecting with that audience.
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23

16.
Define the problem
 In addition to understanding your audience, you
must know what problem you are trying to solve. A
hardware company sells products for home
repairs. A restaurant feeds the community. Without
a problem or a need, your business may struggle
to find its footing if there isn't a demand for your
services or products.
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23

17.
Understand your offerings
 With your audience and problem in mind, consider
what you are able to offer. What products are you
interested in selling, and how does your expertise
match that product? In this stage of the business
model, the product is tweaked to adapt to what the
market needs and what you're able to provide.
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23

18.
Document your needs
 With your product selected, consider the hurdles
your company will face. This includes product-
specific challenges as well as operational
difficulties. Make sure to document each of these
needs to assess whether you are ready to launch
in the future
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23

19.
Find key partners
 Most businesses will leverage other partners
in driving company success. For example, a
wedding planner may forge relationships
with venues, caterers, florists, and tailors to
enhance their offering. For manufacturers,
consider who will provide your materials and
how critical your relationship with that
provider will be.
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23

20.
Set monetization solutions
 Until now, we haven't talked about how your
company will make money. A business
model isn't complete until it identifies how it
will make money. This includes selecting the
strategy or strategies above in determining
your business model type. This might have
been a type you had in mind but after
reviewing your clients needs, a different type
might now make more sense.
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23

21.
Test your model
 When your full plan is in place, perform test
surveys or soft launches. Ask how people
would feel paying your prices for your
services. Offer discounts to new customers
in exchange for reviews and feedback. You
can always adjust your business model, but
you should always consider leveraging direct
feedback from the market when doing so
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23

22.
Syed Asim Abbas – Corporate Entrepreneurship – Jan’23