Process & Business Expansion – Page 7

How to Develop a Business Model to Make Loyal Customers?

Introduction

How to develop a business model?
Are you unable to developing an effective business model?

You might be a budding entrepreneur and like other successful entrepreneurs, you also might be vying to establish a successful business.

But, are you too struggling to develop an effective business model?If yes, then this article is a must-read for you.

If you too are looking for ways of how to develop a business model, then the “ABCDE Model” as we have created, is going to help you out as much as never before.

What is ABCDE Model?

A = Analyze || B = Brainstorm || C = Create || D = Deliver || E = Evaluate

Let us look at all aspects of the ABCDE model one by one.

Analyze

For developing an effective business model you need to analyze your target customers and the target geographical area.

You need to put your feet in your customer’s shoes to understand their behavioral pattern and their needs.

It is then only you will be able to strike the right chord of your customers.

Brainstorm
Analyzing is followed by brainstorming the gathered data along with your team to understand the customers’ needs.

A small survey can be done in the market to understand your customers’ needs.

You have to do an assessment of your target customers by asking them questions.

On the basis of analysis of those surveys and responses, you have to create your product or service.

Create
After understanding the customers’ needs, and developing an effecting business model, you have to establish your factory or business to start production of the desired product or service.

Many entrepreneurs think that the success of their first product will either make them millionaire or doom them.

While producing your first product, keep in mind that the first product is never your final product. It is only meant for testing and not for success.

So, you must be prepared for the first failure!

But, you must analyze ‘why the first product failed?’ and improve accordingly.

Deliver
After producing a product or service, your next step should be the delivery.

You need to select a proper channel to deliver and distribute your product or service to the customer in a cost-effective manner.

Evaluate
Now, as you have delivered your first product, it’s time for you to evaluate your product by getting customers’ feedback.

It is also called testing, measuring, and adapting.

You need to assess whether you have achieved Customer Delight or not.

If not, then you have to bring changes in your product accordingly.

You have to improve your solution architecture repeatedly to reach Customer Delight, which is a continuous process.

If you genuinely adopt the “ABCDE Model”, you will never have a question like how to develop a business model that can take you to the level ahead.

Importance of Distributor Selection Criteria

Introduction

Do you want to know how to select a distributor?
Do you have proper distributor selection criteria?

If you want to expand your business in the whole country, you should have a good distribution network. You should have a big distribution network including distributor, wholesaler, retailer, and dealers.

Partner or Distributor Selection Criteria

How can you grow exponentially with the help of proper criteria for the selecting and appointing distributors?

Selecting and appointing distributors involves the following activities:

Conduct the due diligence of your partners or distributors accurately.
Understand the pattern of the sales success and financial pattern of your partner or distributor.
Check the balance sheet of the distributor.
Check the profitability and Earnings before Interest, Depreciation, Tax, and Amortization (EBIDTA) of the distributor.
Determine the amount of cash and debt of the distributor.

If your distributor is in debt, he will try to come out of debt with your help while you are seeking his help to succeed.

In such a case, both of you won’t be able to succeed. So, distribution channel selection criteria play a vital role in the success of your business.

Recruitment Process Manager or Channel Partner Manager

Along with a strong distribution channel selection criteria, you need to establish a recruitment process to expand your business in the whole country.

Hire recruitment process manager. He/she will perform the following functions:

Check and search channel partners in all the territories of the country.
Understand the succession planning of different territories.
Identify the distributors and retailers who can replace the existing non-performing distributors and retailers.
Collect the professional relationship data of distributors and partners.
Forecast the sales of the company from different territories.
Forecast the manpower required in different territories to expand the business.

Recruitment Package

Provide great offers and a total solution to the distributors and partners. Give proper training and services to the distributors and partners.
Make an exciting price catalogue for the distributors and partners so that they can estimate their Return on Investment (ROI) easily.
Provide demo team support and marketing support to the distributors and partners.
Show your media plan support, product customization feature, and testimonial references to the distributors and partners.
Provide guarantee, warranty, free samples, scheme, and incentives to the distributors and partners.
Understand the business of your retailers and distributors.
Identify how your retailers and distributors are earning and losing money.
Provide a clear goal to your distributors and partners.
Provide an up-selling incentive to your distributors and partners.
Invest some money and time on distributors and partners by attending their family functions, conducting corporate lunch, etc. to build healthy relationships.

In some businesses, you don’t require a distributor or retailer. You can go online or build some alternative channels to reach your customers. You need to understand which channel is required in your business.