Startup Plan | Let's Give Shape to Your Dreams! How to Create a Business Concept and Business Model

How to Create a Business Concept and Business Model

Good morning!
I am Hiroaki Ohashi, a tax accountant.

Today, once you have decided what you want to do when you start your business,
in other words, your "startup theme,"
I will talk about important things
to realize that theme.

For any startup theme,
it is important to think carefully about "who," "what," and "how"
you will provide it,
and to create a mechanism
for how to turn that into profit.

This time,
let's take a look at
business concepts and business models
specifically, using a coffee shop as an example!

Let's Decide on a Business Concept

First isthe business concept.
Simply put, this means clarifying
"who," "what," and "how"
you will provide it.

Let's look at the business concept
using the example of Person A, who chose the startup theme of
"having coffee lovers enjoy authentic coffee through home roasting."

• Who: Coffee lovers, quality-conscious segments

  • People who want to enjoy authentic coffee

• What: Carefully selected home-roasted coffee and professional expertise

  • Provision of high-quality coffee and services

• How: Installing a roaster in the store and providing it according to customer preferences

  • Customer service by professional staff knowledgeable about coffee roasting

When deciding on a business concept,
"who" you provide it tois
the setting of the target customer, which is important.

By clarifying the target customer,
the "what" and "how" that meet their needs
will be
more concretized.

Narrowing down the target is
extremely important in establishing a business concept.

Let's Draw a Business Model!

Now, once the business concept is decided,
next, let's think about the blueprint for"how to make a profit,"in other words,
a business model.

When drawing a business model,
it is recommended to draw your shop in the middle of a piece of paper,
and use arrows to write down
the connections with the surroundings.

Let's look in detail at the case of a specialty home-roasting cafe

Mechanism to generate sales

• Providing coffee at the store

• Serving cakes and baked goods at the store

• Selling coffee beans at the store and on an e-commerce site

• Holding regular roasting workshops

Necessary suppliers and partners

• Coffee bean importers

• Roasting machine manufacturers

• Confectionery manufacturers (cakes and baked goods)

Equipment and human resources to use

• A store with a sense of luxury

• Roasting machines and simple cooking equipment

• Specialized staff and part-time staff

Know-how to utilize

• Coffee roasting techniques

• Knowledge of coffee beans

• Attentive customer service

• Efficient operations

Points for generating profit

• Achieving high unit prices through high-quality products

• Additional sales from selling coffee beans, etc.

• Building relationships with customers through roasting workshops

Key points for success

A good business model has
the following characteristics.

1. It must be an executable system

   • Choose a method that can be reliably executed

   • Ensure necessary skills and personnel can be secured

   • Operate in a sustainable manner
     

2. It must have uniqueness

   • Leverage your own strengths

   • Differentiate from competitors

   • Create a system that is difficult for competitors to imitate
     

3. Continuously improve

   • Listen to customer feedback and make improvements

   • Look for more efficient methods

   • Add new products or services

To explain to financial institutions

A business model is
very important when consulting with financial institutions for a loan.
This is because

it serves as material to judge
how your business will generate profit
and whether there is a prospect of repayment.

Let's make sure you can explain the following points clearly
using diagrams.

• Flow of products and services

• Flow of money

• Necessary equipment and personnel

• Relationships with suppliers and partner companies

By explaining clearly using diagrams,
the loan officer's understanding will also deepen.

By conveying the business structure and future potential,
it becomes easier to receive a loan.

Summary: Toward Business Success

To make your business successful,
it is important to think carefully about
both your business concept and
business model.

First, try drawing a diagram on paper
to organize the structure of your business.
Then, while looking at that diagram,
try explaining it to your family or friends.

Parts you cannot explain well
may be areas where your thinking is still insufficient.

For parts that are not working well,
review them repeatedly
and make improvements.

What is important is
whether you can create a mechanism
that can generate solid profit while providing value to customers.

See you next time!