Deep knowledge of your business model

As a manager, director, or advisor, you need deep knowledge of your business model and revenue model. Not only to be able to effectively course-correct when necessary, but also to be able to change and innovate quickly and in time. Disruption can jump up in your face like a jack-in-the-box, and you have to be ready for it. But there’s a lot more to business modeling:

  • Which models and techniques can you use for business modeling?
  • How do you translate your revenue model to the workplace (agile working)?
  • How do you innovate your business model in line with developments in the marketplace?
  • How do you align all this with your strategy and mission?
  • How do you stay updated on your performance: KPIs.

Are you facing one or more of these issues and do you want advice about your revenue model? Our business model specialists are eager to help you.

Determine and describe your revenue model

There are different methods of determining and describing your revenue model. The most well-known of these is the business model canvas: describing how your company makes money in 9 stages. It describes which key resources, technology, and key activities are required. Strategy mapping and the balanced scorecard are also especially useful tools. All this naturally has to be preceded by scenario thinking and analysis.

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The 9 building blocks of the business model canvas

These are the most important building blocks of the business model canvas:

  1. Target demographics: which customers do you want to serve with which product portfolio, and why?
  2. Value proposition: describe the benefit of your products and service to your customers.
  3. Customer relationships: how do you maintain your customer relationships?
  4. Sales channels: which sales channels do you open for contact with your prospects and customers. For this step you should also think about the intensity of the contact and the degree of interactivity and user-friendliness.
  5. Revenue: how big is the market, and how do you generate revenue?
  6. Important tools: which aids and tools are essential to generating that revenue?
  7. Important activities: which activities form the key to the success of your business model?
  8. Partner structure: this is where you describe which partners you need to make your organization flourish.
  9. Costs: what are the costs associated with the above 8 building blocks?

As you can see, the business model canvas is a complete model that forces you to define every aspect of your revenue model. It may be an enormous task, but it decreases the risks you run into and will increase the odds of success for your organization. Also relevant: how do you formulate your sales strategy?

Testing your business model

When you’ve completed your business model canvas in concept, we recommend having it tested by experts, employees, and advisors. There will no doubt be holes in the canvas, and having it tested can only lead to improvement. A common problem is the lack of uniqueness of the value proposition. Other companies might, for example, have been doing what you want to do for much longer. So there might not be an actual gap in the market for you to fill. Or there is a lack of imagination, untested assumptions, and insecurities in your revenue model. Our Scenario Planning workshop helps you reinvent and test your business model.

Communicate your business model

Managers and directors should be able to describe the business model in just a few sentences. You should be able to sum up your business strategy in 35 words or fewer. The balanced scorecard and strategy map are other helpful tools to communicate your business model in a visually compact way. When companies can’t communicate their business model, lots of things can go wrong:

  1. Managers and teams are flying blind and make decisions that aren’t in line with the business model.
  2. Your customers aren’t sure what your benefit is to them. If you can’t accurately describe it yourself, you can’t expect your customers to know.
  3. Your customers feel that they’re getting bad service and that results in lower customer satisfaction.

The more accurately you fill in your business model canvas, the fewer “holes” remain, and the simpler it is to explain your revenue model.

Our approach to business modeling

✓ First, we immerse ourselves in your current business model or startup plans.
✓ Market developments, scenario thinking, and ambitions are the starting point.
✓ Workshops create input, synthesis, and a base of support among your staff.
✓ We reduce everything to the essence: the genuine critical factors.
✓ Comprehensive, holistic approach with all-round vision, analytics, agile working, and PDCA improvement.

5 golden tips for a sustainable revenue model

  1. Think holistically: having a one-dimensional revenue model will quickly come back to bite you. Your employees and customers won’t understand the revenue model, and worse: it won’t work.
  2. Think big, smart small: test the first version of the revenue model to see if it works. Then, you can get quick feedback and you can start refining the business model.
  3. Be visionary: build the foundation of your business model on a few realistic future scenarios. They don’t all have to come true.
  4. Be agile: changes happen so quickly now that you have to ensure that your business model is agile. Build flexibility into your company.
  5. Be consistent: consistency in all facets. Design your processes with a solid foundation, and work towards a sustainable business.

Business model innovation

The concepts “business model” and “innovation” form two sides of the same coin. Without continuous innovation, there can be no sustainable revenue model. And without thorough knowledge of your current business model (and the market developments) you can hardly innovate successfully. Our business model engineers know like no others what business model innovation means and are eager to help you establish a healthy future for your business. Our expertise lies on the cutting edge of sustainable business models and big data and intelligent organizations.

Learn more about new business models

Our advisors and specialists in business model innovation are eager to help you. Contact us for an introductory meeting or take a look at our strategy knowledge base.

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A selection of our customers

Become a customer with us now

Do you also want to become a customer of ours? We are happy to help you with business model innovation (revenue models) or other things that will make you smarter.

Daan van Beek, Managing Director


Managing Director

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