Our Business Model and Growth Strategy (2024)

FAQs

How do you answer what is your business model? ›

“Business model” is just a trendy, jargon-laden way to say “make money.” You answer that question by explaining how you make money. You sell goods, you sell services, you sell subscriptions, you sell advertising, and so forth. You buy widgets for $25 each and sell them for $50. You sell ads on your website.

A growth strategy is a detailed outline that lists the actions businesses plan to take to expand operations, increase revenue and boost market reach. With a growth strategy, an organization evaluates its financial, market and industry positions to establish clear objectives that help the business develop over time.

A growth model is a visual representation of the acquisition model a business uses to grow and sustain its customer base. A business's growth model will depict the inflow of new customers, the methods used to create this inflow, and the expected growth generated with these methods.

In general, a business model should identify your customers, understand the problem you are trying to solve, select a business model type to determine how your clients will buy your product, and determine the ways your company will make money.

In the manufacturer business model, companies make money by selling to other businesses or retailers. Example: A business makes electronic parts for a cell phone. It sells those parts to a phone maker that buys parts from various companies to build its phones. All the companies involved make a profit from their sales.

A growth strategy is a plan that companies make to expand their business in a specific aspect, such as yearly revenue, number of customers, or number of products. Specific growth strategies can include adding new locations, investing in customer acquisition, or expanding a product line.

There are four core strategies that make up organic growth. These strategies are known as market penetration, market development, product development, and diversification. Market Penetration: This growth strategy involves selling more of a company's existing products or services to its current customer base.

A growth strategy is an organization's plan for overcoming current and future challenges to realize its goals for expansion. Examples of growth strategy goals include increasing market share and revenue, acquiring assets, and improving the organization's products or services.

Every new business and start-up, big or small, goes through the five stages of business growth. These phases include existence, survival, success, take-off, and resource maturity. All stages of small business growth come with challenges that every company will have to overcome.

What is the main goal of the business model? ›

A business model is essential because it aligns the company's goals, operations, and strategies with its target customers' needs and preferences. It enables the company to identify, analyze, and optimize the key components of its business to ensure long-term sustainability, profitability, and customer satisfaction.

In short, the value proposition is a critical component of a strong business model. It defines the unique value that a company offers to its customers and sets the foundation for all other elements of the business model.

Structure your answer be simple and clear enough so that it allows and invites your buyer to ask you more. If they use a term first, then you can use the industry shorthand terms; if they start, you can follow. Do your best of avoid using buzz words, and risk turning them off in the first 15 seconds.

Broken into four parts, each business model includes an offering, customers, infrastructure, and financial viability.