“If I had asked people what they wanted, they would have said faster horses.”
What is unusual about the following words: revive, banana, grammar, potato, dresser, uneven?
Any business requires unwavering boldness to accept uncertainty, especially when faced with the unpredictability of the future. This alone, cannot guarantee you will reach profitability, and that’s where the concept of business models is introduced.
Like the riddle above, this involves seeing what no one else is seeing or solving a problem that no one thought they had in the first place. This is particularly useful when trying to innovate and add value to customers in new ways. A business model defines how an organisation will offer more value to its customers than its competitors can; and how it will enlarge the scope of its competitive edge either through its profit formula or customer value proposition.
The purpose of the business model is to ensure that profitability can be reached through the execution of the customer value proposition. A business model will be unique to individual organisations, even if they operate within the same industry. Innovation is what will usually set different business models apart.
A great business model will always be a better and more efficient way of doing what already exists – a better way than the existing alternative.
In the riddle above, if you take the first letter of each word and place it at the end, it will spell the same word backwards.