What is a Business Model?
is its plan or diagram for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on the basis of the profits it generates.
The Importance of Business Models
It is very useful for a new venture to look at itself in a holistic manner and understand that it must construct an effective “business model” to be successful.
Everyone that does business with a firm, from its customers to its partners, does so on a voluntary basis. As a result, a firm must motivate its customers and its partners to play along.
Close attention to each of the primary elements of a firm’s business model is essential for a new venture’s success
FINANCING OR FUNDING
The Importance of Getting Financing or Funding
The Nature of the Funding and Financing Process:- Few people deal with the process of raising investment capital until they need to raise capital for their own firm.
As a result, many entrepreneurs go about the task of raising capital haphazardly because they lack experience in this area.
Why Most New Ventures Need Funding:- There are three reasons most new ventures need to raise money during their early life.
The three reasons are shown on the following slide.
