Business Model and Supply Chain Definitions

• Product description promotes a product to explain its value to potential buyers.
• They provide details around features and benefits, which obliges customers to make a purchase.
• A prototype duplicates a product as intended for production, including color, graphics, packaging, and directions.
• Creating a prototype is an important early step in the inventing process.
• A supplier is an entity that provides goods and services to another business.
• It is part of a business's supply chain, offering a major portion of the value in products.
• A value chain is a method or activities through which a company increases the worth of an item, with production, marketing, and after-sales service.
• A supply chain is a network of organizations, people, activities, data, and resources

Business Model

• It outlines how an organization creates, delivers, and captures value in economic, social, cultural, or other contexts.
• Business model construction and variation are also called business model innovation.
• It forms part of a business plan.

Phases In Developing A Business Model

• Identifying a specific audience helps focus on customers who need and want your product or service.
• Business models need to narrow the audience down to two or three buyer personas.
• Businesses need to understand the activities required before going live
• Key business activities must first identify the core aspects of the business's offering.
• A company must determine what it needs to carry out daily processes, find new customers, and reach business goals. Documenting resources is essential to ensuring your business model can sustain the needs of the business.
• Establish what your business offers and why it is better than competitors to create a value proposition.
• Connect a service or product delivery system to each value proposition to remain valuable to customers over time.
• No business can function without key partners that help serve customers.
• Partners can include suppliers, strategic alliances, and advertising partners.
• A demand generation strategy creates a blueprint of the customer's journey while documenting motivators for taking action.
• When launching a company, business plans are based on assumptions and can meet customer needs.
• Companies should leave room for innovation.

Business Plan

• Serves as an important tool for understanding a business's future.
• Guides implementation and operation of the business proposal.

Components

• The introduction explains the business plan's purpose.
• The Executive Summary is part of the business plan, is presented first but is the last to be written.
• Business Concept: Describes the business, its product, and the market.
• The Executive Summary should specify what will be sold, to whom, and why the business has a competitive edge.
• The official and registered name.
• The business's legal form is its structure as asole proprietorship, partnership, or corporation.
• The location is its specific business.

Types

• Examples include: food service, delivery, parlor, and car wash.