Guidelines for Developing a Business Model

1. The Business Idea

2. Core strategy (how a firm competes)
i. Product / Service Description
ii. Business Mission
iii. Product Market scope
iv. Basis for Differentiation

3. Identification of the Opportunity

4. Industry Analysis
i. Industry Background
ii. Industry Attractiveness – (size, growth, opportunities, stage of PLC, future scope)
iii. Competitors – (direct/indirect competitors, substitutes, estimated number of
competitors, list the name of top players, identify positioning)

5. Strategic resources
i. Core competencies (Identify and explain how a firm acquires and uses its
resources – soft skills, expertise etc)
ii. Infrastructure and Strategic asset (Identify and explain how a firm acquires and
uses its resources – infrastructure, locational advantage, experienced workforce
etc)

6. Partnership network (how the firm structures and nurtures its partnerships)
i. Suppliers – (Identify the required supplies, raw materials, components, or finished
goods. Find out the real suppliers, place their profile, quotations, catalogues etc in
annexure)
ii. Other Key Relationships – (strategic alliances, joint ventures, networks, consortia,
and trade associations)
iii. Distribution Mechanism – (Sales and distribution channel)

7. Customer interface
i. Target customer – (clear description of target market)
ii. Fulfillment and support – (how do you reach your customers till the product
lifetime, how do you wish to provide all the supports)
iii. Pricing Structure – (pricing strategy, mention estimated price, priced against
which product available in the market etc)

8. Source and Modality of Revenue – (revenue earning strategy/technique of the business

like – mark up, commission, licensing, subscription, advertising etc)

9. Value configuration – (value of your product for customers, what problem does it solve,
what would customers expect in your product, how does your product attempts to meet
customer expectation etc. may refer value proposition canvas)
10. Diagrammatic representation of the modality
11. Placing Business Idea into BMC
12. Annexure