Week 4: Business model-choosing your business model and pricing strategy
Are you starting a business? Well before we get stuck into all these fantastic tips and tricks, I should mention that this article is part of a series based on ‘How to Start Your Own Business in 90 Days’, written by the team here at Brixx. See the complete list of articles here.
You can buy the complete book, full of exercises and examples, here on Amazon,
By now, you should have your big idea and you’ve probably started researching the market you want to approach. So, what’s the next steps? How do we take your idea and develop it into a feasible business?
The next steps are to choose a pricing strategy and business model.
The content for this week will be split up into the following articles:
A business model is your company’s strategy that defines how your business is going to make a profit. Your business model should describe things like your value proposition, which depicts the goods or services that your offering and why your customers desire them. This description should clearly differentiate your product or service from your competitors. By the end of this blog post, you should be in a better position to determine the best business model for your startup
The main topic of this blog post is pricing strategy. We’ll provide you with different techniques and examples of pricing strategies that will enable you to identify the right pricing strategy for your business.
A pricing strategy refers to the way your company prices your products and services. The main thing about your pricing strategy is that the one you choose to adopt should support the costs of your business. Ask yourself questions like: how much do I need to earn in order to sustain my business? How many products can I actually sell? How does my pricing sit in relation to the competition? In addition to this, your pricing strategy should compliment your business model.
That’s it for this week!