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Elements of a business model

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A successful business model is composed of four elements: value proposition, profit formula, key resources and key processes. These are the cornerstones upon which a successful business is framed. All the many things that it takes to form a thriving enterprise can be boiled down to these four cornerstones.

The value proposition pretty much speaks for itself. This is the fun part. Finding a need that a customer or business has and finding a more efficient or effective way of solving it than is currently being done. This is the creative keystone that scratches the proverbial itch of  your target market. The key to constructing a powerful value proposition is to have an in-depth understanding of your target customers problems and jobs to be done.

The profit formula is where the rubber meets the road and the true backbone of the business is derived. Without this economic blueprint figured out its pretty tough to have a business at all. The profit formula should define the revenue model, costs, margins and resource velocity. Figuring out how the cash register will ring and what it will take to do that profitably is the key to any business success.

The key resources are the unique people or technologies or equipment etc. that help deliver the value proposition to the customer. These resources may be the difference between “in-business” and “out-of-business.” Having a strong brand or an amazing supply chain can establish how the value proposition is delivered.

Key processes are the tasks and systems that lay out how the business is run. The sales system is a process that creates consistent results and can really create a competitive advantage. The employee development, budgeting, service training etc. are crucial to delivering the value prop to the customer. These systems are what creates continuity and establish the way customers are profitably served. A business without well-developed and documented systems will run inefficiently and will most assuredly struggle to keep up with competitors.


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Josh Hamilton

Josh Hamilton

Hungry, Determined and Motivated. These three words sum up my personal disposition. The key to strong business infrastructure is strong relationships. I seek to build long-term business relationships that transcend a simple monetary transaction. My aim has been, and will continue being, to establish very strong win-win relationships throughout my business journey. Opportunist and business creator. My experience lies in building business systems and concepts. My passion lies in motivating and inspiring others. I'm constantly reading and learning to maximize my value creating ability so that, I can achieve my overall goal of fostering substantial wealth for the Kingdom!

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