Business Model
The Business Model is much more than simply the revenue model of a Software Venture, or how it will make money. Overall, it is a mix of the value proposition, the target market, communication and distribution channels, and client relationships. Further, to completely understand the business model of a business, it is necessary to know the execution activities and the internal and external resources those activities require in order to bring the business model to fruition.
Value Proposition
A Value Proposition is the definition in simple terms of the benefits provided to a client by the Software Product the Venture is selling. The process of boiling down features and high-level benefits into a concise, customer-benefit-centric Value Proposition can be difficult for feature-oriented Software Ventures, but is required to gain traction with all but the most technical user-base.
Revenue Model and Pricing Strategy
It is critical to understand the Business as a whole to understand the Business Model. The Business Model can be broken down into individual parts, one of those being the Revenue Model. A single Software Venture can have multiple Revenue Streams, or could have multiple products each with their own Revenue Model. Revenue Model is tied closely to the Marketing process of Pricing Strategy.
Pricing Strategy takes into consideration the external drivers, from customers and competitors, to craft the pricing structures for the Software Product. The Revenue Model is extrapolated from the Pricing Strategy by breaking down Pricing Strategy into granular revenue points and considering overhead, integration costs, and transaction barriers and costs to develop an actionable Revenue Model.
Formal Business Plan Creation or Review
Whether building a Formal Business Plan from scratch or if you already have one created, it is critical to understand that it is the content of the document, not the document itself that matters. Sixteen Ventures does not provide our clients with customized Business Plan layouts.
Instead, through a proprietary knowledge extraction process, we help you build a plan that perfectly represents your vision and has the market research, operational and strategic planning, and financial modeling to stand behind it. If you already have a business plan, we can analyze and review it against our internal standards and let you know what we think needs to be added, removed, or changed and suggest methods to most effectively take the necessary actions.
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