When you're ready to create and analyze your own business model, jot down your ideas while using the business model wheel. This practical tool is also useful when you revisit the ideas you come up with during your annual planning process. The business model wheel focuses on the following areas:
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Offering
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Market attractiveness: The industry, niche, and customer segment you will sell to.
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Unique value proposition: The significance of the opportunity to stand out in the marketplace and how strongly your offering does so.
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Monetization
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Profit model: The streams of income created by the offering and the associated margin generated.
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Sales performance model: Converting the marketing expectations into actual paying customers.
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Sustainability
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Ongoing competitive advantage: Creating meaningful differentiation and advantage today and tomorrow.
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Innovation factor: Balancing the need to innovate to keep up with competition with your ability to do so.
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Pitfall avoidance: Making sure a good model doesn't succumb to regulation, litigation, fads, or excess reliance.
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Graceful exit: Creating a model that allows the owner to sell the business for a large sum of money or run it as a CEO Emeritus.
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