Entrepreneurship is often result of sheer passion of an Individual or group of Individuals. It starts with an idea which takes the form of business with Individual's immense energy, focus and true spirit of making difference in the world. The journey starts with problem finding and ends with finding the solution for that problem. Identifying the problem is easier part while solution in the form of Business Model is difficult part because this solution must be innovative, cost effective and sustainable.
Business Model has many aspects to it ,At the nascent stage of Business Model Formulation, if following three perspectives ( 3P Framework) are taken it would definitely help in building right capabilities and Scaling up the business in the long run/ future.
Periphery: What business we are ?
Often this is described narrowly in terms of Solution to some problem. Many firms which were very successful initially are not able to achieve the height of greatness mainly because of the non clarity of the purpose. It is very Important we focus on the bigger picture of the firms's existence. Car Business is too narrow as compare to MOBILITY Solutions. Similarly Mobile Business should be replaced with Communication Business and Movie making business should be replaced with Entertainment business. So this purpose define the focus point which has potential for the expansion in future.
Process: How you are doing ?
Business Model is mainly about this process of creating sustainable Value for the firm. How you are meeting the purpose should be clearly communicated in terms of Value creation, whether it will be done as Manufacturer, Trader, Product aggregator, Platform provider or combination of these. This process of value creation can be Soft ( Design/ Ideas/ Innovation/ Strategy/ Planning) or hard ( Manufacturer/ Trader/ SCM etc.) or even combination of the two. This understanding of the process or Value chain entities where firm is operating is critical because other planning and processes are dependent Upon it. It also determines the vulnerability of the business as risk taking entity.
Performance :What is the Social impact/ Outcome ?
True Business outcome does not lies in balance Sheets. True outcomes gets imprint in the minds of the customers, which in its totality is reflected in terms of Social impact. For an exmaple- Invention of Bulb, its Social Impact is far beyond the narrow measure of Quarterly financial results of the Bulb making firm. Focus should be on how Humans are getting impacted by it. The foremost measure the Business Outcome is judged by Which of customer's need / latent desire is getting fulfilled ?
Summary
Even before starting the business, this 3P Framework can truly form the foundation of "Concept of the Business". This framework is about the Human connect of the Business, where it finds purpose in the Mind of Customer as problem, and firm adopts an approach to address the problem , the result of which can be measured by Performance in terms of the Social impact firm is making in terms of Happiness Quotient of Customers.
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