Developing your business model


Figure 1 Management guru, Peter Drucker

Renowned management guru, Peter Drucker, once asserted that there are five key questions you must ask yourself about your business:

  • What is our mission?

  • Who is our customer?

  • What does the customer value?

  • What are our results?

  • What is our plan?

(Drucker, 2008)

Each of these are critical questions and together they should form the basis of the way in which you approach doing business – your business model.

In this unit you will consider how you might develop an effective business model and make money from your product, service or big idea.

1 What is a business model?