Business model
The business model is a tool to help you map out your idea. It gives you a practical overview of how you intend to realise your business idea and start making money.
Tool for development and communication
Your business model is a great tool for communicating the idea to potential customers, business partners, banks and public support schemes.
Key questions that you need to map out in your business model are:
- What will you sell?
- Who will your customers be?
- Who will be your competitors and who are your potential business partners?
- How will you sell?
- How will you deliver?
- How will you be paid?
- How will you generate a profit?
A living document
Your business model should be a "living document" that adapts as you receive new information about your project. When working on your business model, you start with simple sketches. As you test and validate your plans, the business model will become more refined and concrete. You should focus on developing a business model that is not only financially viable but also takes environmental and social factors into account to build a sustainable business model.
How to develop a business model?
There are various approaches to creating a business model. At Innovation Norway, you can read more about different methods and tools for creating your business model.
Innovation Norway – How to prepare a business model (in Norwegian only)
From business model to business plan
Once you have created a business model which you can take further, you can draw up a business plan. A business plan will set out a more detailed description of your business model and you must focus on how you will establish your business. When preparing your business plan you must also draw up the necessary start-up budgets.
