What is business modeling?

Business modeling is the process of creating a notional description or visual representation of business processes, products, services or other elements that make up a business.

Business modeling can be very useful to entrepreneurs in the following cases:

1. If you need to systematize the concept of the future project;
2. If you need to synchronize the team around a common vision;
3. If you need to assess scenarios for project development;
4. If you need to identify risks or hidden problems in the project;
5. If you need to assess the feasibility of the business plan;
6. If the prospects for development need to be evaluated;
7. If you need to prepare the project for investment assessment;
8. If you need to structure the business logic of the project.

In general, business modeling helps you better understand the context of the project and make informed decisions, which affects the effectiveness of launching a business.

However, it is worth noting that business modeling is only a tool and does not guarantee success. It is also necessary to take into account market conditions, the competitive environment and other factors that can affect the results.

If you decide to do your own business modeling, below is a list of possible tasks that must be completed for a business model to be considered sufficient or complete.

1. Target audience research
2. Estimation of market capacity
3. Formulation of the value proposition
4. Formulation of necessary functions / services in the product
5. Competitive analysis
6. Defining market positioning
7. Determination of monetization methods
8. Elaboration of the organizational structure
9. Financial modeling
10. Strategic goal setting and planning

There are many different frameworks that help speed up the business modeling process. Among them the most famous are Business Model Canvas by Alex Osterwalder and Lean Canvas by Ash Maurya. They have earned their place in international business modeling practice because of their visual clarity and simple logic.

Planforge uses its own Harmony Desk for Business framework, which not only combines the benefits of Lean Canvas and Business Model Canvas, but is also more detailed and easy to use in a digital environment. Many of the blocks are technologically related to each other and have a number of hints that allow you to minimize errors and approach model design more deliberately.

You can see for yourself by requesting access to Planforge.