Creating Business Model

13 October 2015
The project summary

When a company doesn’t have a correctly prepared business model also doesn’t have particular course of action. The condition of success is a well - drawn up plan and its consistent implementation. In this particular case we supported the entrepreneur in creating a business model from the beginning, although the product has been on the market for several years. During this time entrepreneur treat his business as a small startentrepreneurup and was unaware of the potential. Consultant of Scout Solutions  was responsible for carrying out the entrepreuner through all steps creating a business model. After a short interview and determine needs, organised six meetings, which ended  tasks for the entrepreneur and  finally plans and activities leading to development of the business.
Within two months created a business model, defined short - and long term goals and made decisions of effective management. With the support of a consultant, entrepreneur described in approximate manner aspect of reality and step - by - step planned development of his business. In the next months entrepreneur independently carried out tasks by analysing and controlling effects still with the support of advisors of Scout Solutions. The next step was to analyse various distribution channels. 

The idea for the business of entrepreneur was unusual and was associated with handicrafts. He used talent earning the money but without special business plan. He couldn’t identify what group of customers may be interested in the products, how he can get to them, not only using social media - how it looked before. His handicrafts ideas realised sporadically, not having a precise time of production of a single product. Definitely the time was longeestablishedr considering the manual work required more effort. The entrepreneur wasn’t also sure prices, which he established and how many customer would be able to pay for products. He had a vision, but according to him it was unreal. He also had mission devoid of any purpose, worked every day without any idea on what to do to finally feel stable. Appeared a feeling of „what next?”. 

Initial stage of cooperation with the Scout Solutions consultant began defining a value proposition and target group. In this way defined the needs and expectations of the customers group and began to prepare a business model. Divided offer for finished products and made to order and also determine a new business idea - offer of handicraft workshops and other enabling passive income. 

The next step was to determine the relationship of the individual customer segments. Because the products are handmade and very often „on order” customer relations required personal approach and are based on direct contact. Defined three customer segments and precisely drawn up a way to reach and cooperation. Precisely way of customer acquisition and communication allows to preparation plan of promotional activities with specific execution date. Was discussed how the company should communicate value proposition and created an individual project to reach customers.The consultant made a detailed analysis of working time and value of the products offered by the entrepreneur.  He created pricing model and accurately presented the entrepreneur how much worth is his offer. He described the costs incurred in connection with the conducted business and revenues are among the most important elements of the business model.

With the help of consultant the entrepreneur searches for solutions to reduce costs and ability to generate more revenue streams. The support of Scout Solutions consultants allowed entrepreneur to choose suppliers, negotiate favourable conditions for cooperation and finding new coworkers on which depends the smooth functioning of the company. At the last meeting prepared a detailed plan of tasks and completion date for each one of them.

The entrepreneur has received a document containing a detailed description of the business model with a proposition for further action. Within six weeks the level of motivation of the entrepreneur and the pace of the tasks has increased. Thanks to the business model the company defined not only the most important aspects of business but first of all to find new ways for additional income. The cooperation has led to the speed up the date of the date of implementation of orders and the location of handicraft products to the category of luxury products.