What are the most important things you need to spend money on to make your business successful?
Finding customers, delighting customers, and delivering value all cost money. Add up the cost of maintaining and operating your key resources, key activities and key partnerships. These numbers should give you a clear idea of your cost structure.
What are the most essential costs you will incur in operating the business model that you've designed? List out the major cost categories in your business model (for example, people, marketing, production, and facilities)
There are two primary cost structures, cost-driven, and value-driven. Cost-driven companies are more focused on minimizing costs wherever possible. Value-driven companies are primarily focused on creating more value. What cost structure does your business have?
Examples: A luxury resort has a Value-Driven business model, and Walmart has a Cost Driven business model.
What are the most important things you need to spend money on to make your business successful?
Finding customers, delighting customers, and delivering value all cost money. Add up the cost of maintaining and operating your key resources, key activities and key partnerships. These numbers should give you a clear idea of your cost structure.
What are the most essential costs you will incur in operating the business model that you've designed? List out the major cost categories in your business model (for example, people, marketing, production, and facilities)
There are two primary cost structures, cost-driven, and value-driven. Cost-driven companies are more focused on minimizing costs wherever possible. Value-driven companies are primarily focused on creating more value. What cost structure does your business have?
Examples: A luxury resort has a Value-Driven business model, and Walmart has a Cost Driven business model.