SETTING BUSINESS MODEL - FOR STARTUPS

You would have learnt what business is and the different forms of business there are in my previous article for startup, but if you haven't you could read through What is Business and its Forms. Many people just create or startup a business not knowing why they are doing so or the basic need of the customers, but taking time to evaluate the necessary things required in starting up your business, you would be able to know you customer's need and work on it, meaning more cashout to the business😊

SETTING BUSINESS MODEL - FOR STARTUPS

Before you venture into any business, you must develop a business model (business structure) that would act as a guide for the growth of the business.

  Business model is a plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products, and details of financing. How then can you develop a strong business model?

  A strong and successful business model requires a clearly defined mission statement and impact model.

The social impact of a social enterprise mission will be derived from the organisation's key activities. With limited resources, investors invest in the most efficient and impact full model, which has a strong competitive advantage over other model with the same mission.

Each factors that determines a business model would be discussed. But lets look at the mission of a business (company).

MISSION STATEMENT:   "A mission statement describes what you want to change and for whom". It does not describe how you would make it change. A good mission statement can be expressed in fewer than 10 words and use of structure verb, target audience is required.

            CHARACTERISTICS OF GOOD MISSION STATEMENT

1. Must be short and concise.

2. Must know whom its target audience and what it want to change as this will provide focus and guides organisation.

3. Must be in simple language for everyone to understand.

4. Must be achievable in reasonable time so it can be "Measurable".

Example of a good mission statement 

   Here are good mission statement of some company

• "Cook Booster Stoves" -- 

Mission: To provide fuel for efficient cooking solution to the people of Bangiasta

• "Patagonia" --

Mission: Build the best product, cause no unnecessary harm,use business to inspire and implement solutions to the environmental crisis

• "Honesty tea" --

Mission: Honest tea seeks to create and promote great-tasting, healthier, organic beverages. We strive to grow our business with the same honesty and integrity, we use to craft our products with sustainability and great taste for all.

If we look closely at this mission statement we would see what they want to change and for whom. Am sure you would be able to identify that in the mission statement stated above...

So when setting up a mission statement, we must know what we want to deal with and for whom. How then can we tie our business model and social impact together?