How to create special business model ?

[wizzard]

Hi,
I am working at consulting company and today I get new task to do. Unfortunately I really don’t know how. Please help ;) I haven't got a lot of business experience.

So, my boss has a foundation which organize once a year a charity big run for other companies. He has got list of 500 companies and they enjoy the run. All the increase money are transfer to local hospital. People really engage with this event.

Soon he is going to open new business like: “Challenge your company”. All the companies staff will be challenge another department (inside). Also it is possible to challenge other company (outside). I must create 2 things:
- Value of join to the program,
And
- Business Model (how to earn money, who will pay for that)
Please help

Best wishes ;)

[vangogh]

Do you have to do this for a specific business? If so what's the business? Could you tell us about it?

It sounds more like the idea is to come up with the business and share the business model and value to join the program. Is that right? The Wikipedia page has some good basic information about business models (http://en.wikipedia.org/wiki/Business_model). Don't get caught up in some of the business jargon. All a business model really is, is describing how your business is going to make money.

For example I offer web design and development services to small business clients. You can substitute any service based business for web design and development and you'd have a similar business model. Part of my business model was deciding what type of client to serve. For example I could have chosen to work with larger corporations or work mostly for two or three small agencies who don't have an internal design/development team. You can build a business serving any of these groups, but your business will be different based on who you choose.

You would advertise in different places to reach a corporation as opposed to a one or two person business. You would communicate different to each. You'd probably need to be more formal with the corporation. There are also differences in how you would make money. Corporations probably have larger jobs with larger price tags, but the jobs might be fewer and further between. A small business will have a smaller job with a smaller price tag, but there should be more small business clients you can reach.

Ultimately a lot of different things go into having a successful business and you have to make a lot of decisions about all those different things You have to decide what product to offer and who to offer it to and what to charge them. Once you make one of those decisions it points the way toward how you decide other things. Your job with a business model is to make the major decisions and describe how all the pieces fit together.

Here's an article with a list of some example business models (http://articles.bplans.co.uk/starting-a-business/examples-of-well-known-business-models/1040). A popular tool people use to help with business models is the business model canvas (http://www.businessmodelgeneration.com/canvas/bmc). Watch the short video and download the PDF (http://www.businessmodelgeneration.com/downloads/business_model_canvas_poster.pdf). Even if you don't follow it, I think it'll help you understand more about what goes into a business model.

As far as the value to join the program, I think you just want to answer the question of why someone would pay to join? What value would the person joining get from joining?

Hope that helps.