Last march 21st I had the honor of taking part as a presenter in the Conversion Thursday de Zaragoza (#ctzgz), a monthly event dedicated to online marketing and promoted, in Zaragoza, by: Marcos Sicilia (@marcossicilia) and Ricardo Tayar (@rtayar).
At the bottom of this post you can find the presentation used during the talk, where we went over the 9 groups that make up a business model and that set clearly how we’ll deal with the market, what we’ll need and if we’ll be able to do it in a profitable way.
What is a business model
“A business model describes how you expect to earn money with your project. Considering that earning money is not the same as selling, receiving money or billing”. Earning money means that the income is superior to expenses”.
After reviewing the different groups that a business model is made of, we study the model patterns that are often repeated in multiple businesses (multilateral platform, fremium, bait and hook, long-tail) and that I am sure, after studying them, you’ll start recognizing it too.
“Understanding means detecting patterns”
Customer development process
After seeing how to define the business model of a project, we saw the steps to take to manage it that might increase the success possibilities of the project. It’s what we call customer development process, which is nothing else but the process of testing your business model.
“The key at this point is not to build the company until the business model is not checked, or, as the Leanstartup motto says: “Fail fast, fail cheap”. In other words, keep your startup in a low consumption money mode (investment) until you validate your business model by finding paying clients.
As a case study of all of this we show you one of the projects we developed at iZenius for a client: Wuachin, a platform to enjoy watching television voting, commenting and sharing. If you are one of those who watch television while connected to social networks, Wuachin is for you.
Next April 10th at EmprenderRed, iZenius team will be again with this and other talks together with Ricardo Tayar and Miguel Monreal. Also, during Zaragoza’s Web Congress on the 7th ,8th and 9th of June, we’ll make a 2 hour workshop about definition and managing of internet business models focusing on the practical application and where we will see several tools so you can apply all these concepts in an easy and useful way.