Importance Of Business Models Before An Entrepreneurship

Importance of business models before an entrepreneurship

Introduction

A study at the North Private University (UPN), showed that 75% of businesses fail before 3 years, which indicates that businesses are not achieving long -term market stability and that these are failingNot only for economic reasons but also for reasons of strategy, organization, vision of the future, focus, marketing, segmentation, lack of product or service differentiation that it offers, location, price competitiveness and business orientation regarding those who offer their productor service, factors that are vital to consider before starting a business.

Developing

InGood business model that the author defines it as: "A business model describes the logic of how an organization creates, delivers, and captures value"

(Martínez, 2014), in his thesis "The business model as the basis of business success", where the author considers to develop a more important theory about the business model and importance of this and maintain the value of the businessRegarding competition. It also highlights and indicates that the development of business model is vital, since it will help evaluate and implement the strategies of the competitive advantages that are striking for future customers and convince them to pay for the value of the product or service,know how they want the product and how much they would be willing to pay for what is offered. In conclusion, the author comments that the business model is a strong source of competitive advantage and that also the organization key is to properly define the business model.

(Sotomayor & Grau, 2014), in his book ”How to compete to win” helps us evaluate the client’s need and then opt for the best strategy, implement and develop an adequate business model to be more competent as a company to succeed andwin in front of our competitors. The authors also mention the importance of the business model and tell us that the business model begins with people, since they are the main element to win and be competitive, the second component is the strategy which would become an important pillarFor our business because it shows us what business we focus on, how to compete and how?”, As a question in the way of giving importance and value in the business model of what you want to offer.

Analysis

As we have seen within the development of the Management and Entrepreneurship Course and also reviewing books and bibliography that demonstrates the importance of carrying out a business model prior to the execution of the same I can affirm that those companies that are executed without prior planning of model planning Business will result in failure, since during the development of it, the value of their product or service will not be clearly and formally established, that people are directed, what ages, what tastes have, how to get to They know what business they do or sell the same as you plan to offer, what differentiates your product, the importance of a brand, which differentiates you as a company, because your product will be more expensive or cheap, which makes your product or service special , as you will sell, how will you reach your final customer, which you will have and how you will announce the value of your product; which leads us to see as a result from this point of view that already has a great disadvantage against others. Therefore, it should be stressed how important it is to previously make a business model that you want to undertake in order to have a competitive and solid company in the market.

conclusion

While it is true that many of the entrepreneurs have the imagination, strength, desire, capacity and economic financing to be able to execute their own business, but they never conclude and if the case that has been executed the vast majority will not be durability In the market and end up being bankrupt, what we see from this point of view is that these businesses are being executed without prior planning and guidance which brings serious consequences of making this point unimportant that at first glance seems not so relevant, Since many entrepreneurs have no idea that this topic about business model is referred to, which is very disappointing because beyond self-interest and self-training of knowing more about how to do a business model without the possibility of enrolling to Courses specialized in this area because not everyone has the necessary resources to enroll, the Peruvian State also plays a role Very important because as a country in development it is known that the largest population are of the medium and low social class and do not have economic resources and therefore it is recommended to implement courses aimed at entrepreneurship during secondary training in schools, since the vast majority of these social classes only access to culminate full high school. These courses would help the student to have a clearer vision regarding business and entrepreneurship, which can generate motivation to entrepreneurship and as a result a better development and execution of their business.

References

• Martínez, e. (2014). The business model as the basis for business success.Osterwalder, a., & Pigneur, and. (2000). GENERATION OF BUSINESSMODELGENERATION MODELS.
• Sotomayor, j. M., & Grau, J. (2014). how to compete to win. MEXICO: PATRIA EDITORIAL GROUP.