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Defining a clear online business model framework is essential for a new startup online business to help create a sustainable business and communicate the features of their new business to partners and within the company.
Reviewing business models is also important for existing businesses thinking about options to refine their business model or add new services to their offerings in the light of new opportunities made possible by the Internet.
As you know, I’m a big fan of simple frameworks to help communicate strategy. In particular, I love the Business Model Canvas which is a valuable framework for summarizing strategy for online businesses. It was published as part of a co-creation creative commons project involving 470 practitioners from 45 countries.
We feature it as part of our digital toolkit where we give an example in our online startup business model template. It’s also available as an app and downloadable templates on the Business Model Generation site. Of course, it can be used for all business models, but it is particularly suitable for online startups.
Business model template – Source: BusinessModelGeneration.com
The business model canvas is also a valuable framework for summarizing your marketing strategy. The main sections of the canvas in a logical order to consider them are:
Digital strategy success factors
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The business model canvas great framework, but I always like to think about what the missing elements of frameworks are since the summary can be misleading otherwise.
The Business Model Canvas is arguably missing a method of specifying Key Performance Indicators for evaluating the performance of the business model. I recommend adding these to the relevant sections, in particular for Revenue stream, cost structure, and key activities.
Our popular RACE Framework model allows managers and marketers to optimize their key interactions with customers at each stage of the customer journey. This strategic framework gives indications of metrics and KPIs to track the journey, which is needed for all business models.
Structure a plan using the RACE Planning framework
Learn how to structure a comprehensive omnichannel marketing plan, using the Smart Insights RACE planning framework
PR Smiths SOSTAC® is another popular strategic planning framework for creating a marketing plan. We have a dedicated SOSTAC® Learning Path module for Business Members. Or, see PR Smith’s site for more details (www.prsmith.org).
Notably, the Business Model Canvas doesn’t directly consider the impact of different forms of competitors, such as in the situational analysis stage of SOSTAC®. That’s why we recommend applying SOSTAC® to inform your planning.
Smart Insights Business Members can also use our blank Word template and B2C example of a one-page summary in this template. This simply takes each part of SOSTAC® and then you overlay specific digital marketing opportunities and challenges across each part of the Smart Insights RACE planning framework – by marketing them up with RACE (plus B, G, R, D for Branding, Governance, Resourcing, Data issues).
Structure a plan using SOSTAC®
Part of the Paid media Toolkit
Learn how to use PR Smith’s SOSTAC® framework, a popular tool for structuring business and marketing plans
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