1.

Social Innovation
1.1Meaning of social innovation

Social innovations are new social practices that aim to meet social needs in a better way than the existing
solutions. resulting from - for example - working conditions, education, community development or
health. These ideas are created with the goal of extending and strengthening civil society. Social
innovation includes the social processes of innovation, such as open source methods and techniques and
also the innovations which have a social purpose—like activism, crowd funding, time-based currency,
health, co housing, co working, universal basic income, collaborative consumption, social enterprise,
participatory budgeting, repair Café, virtual volunteering, micro credit, or distance learning. There are
many definitions of social innovation, however, they usually include the broad criteria about social
objectives, social interaction between actors or actor diversity, social outputs, and innovativeness (The
innovation should be at least "new" to the beneficiaries it targets, but it does not have to be new to the
world). Different definitions include different combinations and different number of these criteria (e.g.
EU is using definition, stressing out social objectives and actors interaction). Transformative social
innovation not only introduces new approaches to seemingly intractable problems, but is successful in
changing the social institutions that created the problem in the first place.

According to Herrero de Egaña B., social innovation is defined as "new or novel ways that society has to
deal with Relevant Social Challenges (RSCh), that are more effective, efficient and sustainable or that
generate greater impact than the previous ones and that contribute to making it stronger and more
articulated.

Prominent innovators associated with the term include Pakistani Akhter Hameed Khan, Bangladeshi
Muhammad Yunus, the founder of Grameen Bank which pioneered the concept of microcredit for
supporting innovations in many developing countries such as Asia, Africa and Latin America and inspired
programs like the Jindal Centre for Social Innovation & Entrepreneurship and Infolady Social
Entrepreneurship Programme

Social innovation refers to the process of developing and implementing new, effective solutions to solve
social or environmental issues. Whether these come from national policies, governmental or non-
governmental entities, such solutions should meet current social needs better than it has been done before.

Social innovation is meant to have long term impact at large scale. Social innovation is traditionally
advanced through non-profit endeavours, but the business community is also open to address society’s
challenges too.

Why social innovation is important

In today’s hyper connected world, one country’s societal problems can become ours. Nations are facing
slow economic growth, financial instability, political turmoil, hunger, poverty and disease. These are all
social issues that have to be addressed, one way or the other, and such big problems generate big business
opportunities. In fact, more than 80% of economic growth comes from innovation and application of new
knowledge
A truly prosperous society in our days consists of both economic prosperity and social prosperity.
Traditionally, we assessed if a country was prosperous by looking at its GDP. Today, it’s becoming more
common to also consider peace and happiness, individual freedoms and liberties and financial well-being.

Social innovation is mistakenly seen by some as charity. It should be acknowledged that social innovation
is actually adding an extra dimension to innovation, sustaining economic and social growth

When we look at prosperity from this angle, we see that prosperous societies have an innovative approach
to current social issues because our complex problems need new solutions. Social innovation brings a
new mindset that leaves behind the narrow way of thinking about social enterprises and for-profit
businesses as two mutually exclusive areas.

1.2 Players of Social Innovation

Social innovation involves the same core entrepreneurial process of finding
opportunities,choosing amongst them, implementing and capturing value, but it
plays out in a numberof different ways which we explore briefly

-Individual Start-ups…

In many cases, social innovation is an individual-driven thing, where a passion for

change leads to remarkable and sustainable results. They include people like:

• Amitabha Sadangi of International Development Enterprises (India), who

develops low-cost irrigation technologies to help subsistence farmers survive dry seasons

• Anshu Gupta, who has formed a channel for recycling clothes and fabric to meet the
needs ofrural poor in India. He initiated Goonj in 1998 with just 67 items of
clothing; today, hisorganization sends out over 40 000 kg of material every month, in 21
states.

• Mitch Besser, founder and medical director of the Cape Town-based programme,
moth-ers2mothers (m2m), which aims to reduce mother-to-child transmission of HIV
and pro-vide care to women living with HIV. He founded mothers2mothers with one
site in South Africa in 2001.. It has grown to more than 645 sites in South
Africa, Kenya, Lesotho,Malawi, Rwanda, Swaziland and Zambia.

-Not Just Passionate Individuals

.But social entrepreneurship of this kind is also an increasingly important component

of ‘big business’, as large organizations realize that they only secure a licence to
operate if they can demonstrate some concern for the wider communities in which
they are located. ‘Corporate social responsibility’ (CSR) is becoming a major
function in many businesses and many make use of formal measures – such as the
triple bottom line – to monitor and communicate their focus on more than simple
profit-making.

.By engaging stakeholders directly, companies are also better able to avoid
conflicts,or to resolve them when they arise. In some cases, this involves directly
engaging with activists who are leading campaigns or protests against a company.

.In some cases, the process begins with an individual but gradually a trend is
established which other players see as relevant to follow, in the process bringing
their resources and experience to the game. An example here is the Fair Trade
range of products, which were originally a minority idea but have now become
mainstream item in my supermarket.

-Public Sector Innovation

Providing basic services like education, healthcare and a safe society are all
hallmarks of a‘civilized society’. But they are produced by an army of people
working in what is loosely called ‘the public sector’ – and as we saw at the start
of this book, there is huge scope forinno- vation in this space. In many ways this
sector repre- sents a major application field for social innovation: while there may be
concerns about costs and using resources wisely, the fundamental driver is around
social change.

Occasionally there is a radical innovation, for ex- ample in the UK the setting
up of a National Health Service to provide healthcare for all, free at the point of
delivery or the establishment of the Open University, which brought higher education
within reach of everyone.But most of the time social innovation in the public sector
consists of thousands of small incrementalimprovements to core services.

Innovation in the ‘Third Sector’

’There is also a long tradition of innovation in the so-called third sector: the
voluntary andcharitable organizations which operate to provide various forms of
social welfare and ser- vice.Some of these – for example Cancer Research UK and
Macmillan Cancer Relief – have createdinnova- tion management groups which
1.3 Motivation of Social innovation
 1.4 Challenges of Social Innovation

⁂ Two Customers. The need to satisfy two entirely different categories of customers—beneficiaries and
funders—makes it more difficult to create tight feedback loops. Not only are we missing the valuable
signal that willingness to pay provides, but funders may also have idiosyncratic priorities that are at odds
with the optimal path to impact.

⁂ Enforced Waterfall. Many institutional donors require a detailed design up-front, followed by
implementation that adheres faithfully to that plan. Of course, this is the opposite of the early testing and
fast iteration that are at the heart of lean approaches. As we know, we’re unlikely to identify the best
solution on the first try.

⁂ Constraint Mindset. In contrast to the Silicon Valley tendency to think big and aim for “hockey stick”
growth, nonprofits tend to plan within the constraints of available funds or the parameters of a grant
proposal. The result is a low-risk, conservative approach that achieves slow, linear growth at best.

⁂ Silos. Donors tend to focus on silos—by sector, geography, or demographic—making solutions that
cross such boundaries difficult to deploy. Organizations can twist themselves into a pretzel to satisfy the
divergent requirements placed on them by each of their funding streams.

⁂ Tight Overhead. Both individual donors and foundations tend to associate low “overhead” costs with
effectiveness. While we certainly want to avoid waste, excessive focus on non-program expenses can be
short-sighted and prevent investments that can drive long-term growth such as research & development,
staff training, and productivity enhancing toolsBeyond the perverse incentives that can arise from donor
funding, a number of additional complexities are inherent to social innovation:

⁂ Three Hypotheses. In business, we run experiments to validate the value hypothesis and
the growth hypothesis. For social innovation, we also need to consider a third, the impact hypothesis.
That is, does a solution effectively address the social or environmental problem at hand? To make a
meaningful difference, we need to deliver on all three.

⁂ Measuring Impact. Quantifying impact is much harder than counting e-commerce transactions. Some
results can take years, or even decades to fully realize. But, validation doesn’t have to be an all or nothing
choice. We can take smaller steps to reduce risk by testing early indicators for our theory of change.
⁂ Cultural Barriers. Mission-driven work frequently serves disadvantaged populations whose needs,
cultures, and experiences may be nothing like our own. Thus, our instincts for both understanding
problems and identifying solutions can be misleading. More care must be taken to bridge cultural divides
and inherent power dynamics.

⁂ Market & Policy Failures. Social change is most needed when both markets and governments have
failed. This can require working across sectors, establishing missing channels, and addressing multiple
forms of injustice—far beyond the scope of a typical product or service.

⁂ Responsible Experimentation. The Silicon Valley attitude of “move fast and break things” must be
more carefully considered when working with marginalized populations. To handle risks responsibly, it
becomes even more important to start small.

1.5 Enabling Social Innovation

→
2.Growing the Enterprise

2.1 Factors influencing success

→ Having a clear plan

The first thing you can do to have a successful life is to lay out a plan. You can include your goals and
aspirations in your plan. Try to be very detailed when you are writing it down. Having a clear idea of
where you want to be may help you streamline your actions and achieve your goals. Although success
may look different to everyone, it is important that you explore your own ideas of success. Try not to be
influenced by the ideas of others regarding your success.

→ Prioritising your goals

Once you have made a list of your goals, it is important to prioritise them. Some goals may be long
term, while others short term. It is important to dedicate your time according to each goal. Determine
which goals require your immediate attention and which do not. Realise that your time and resources are
limited, hence it is important to allocate time to each goal judiciously.

→ Acquiring relevant education and skills

The world is very fast-paced and competitive, hence to succeed you may have to acquire relevant
educational qualifications. A good education may provide you with ample knowledge, insights and a
comprehensive understanding to help you achieve success in your chosen profession. In addition to this,
it is also important to polish your skill set regularly. The more you enhance your skill set, the better the
opportunities to advance your career. Hence, be a lifelong student and constantly improve yourself by
gaining new knowledge or acquiring new skills.

→ Cultivating good habits

Habits are your lifelong companions, hence it is important that you cultivate good habits that help you to
be more productive and organised. This can help boost your capacity and help achieve goals. It may also
help you to save time. Try to be clear and focused. Good habits have the power to change the quality or
direction of our lives. If your old habits are holding you back, try to cultivate new habits and slowly let
go of old and unhelpful ones.

→ Having a positive attitude

Try to have a positive and constructive attitude. You can choose to see the positive side of things in
every situation, no matter the circumstances. A positive attitude can affect every aspect of life and may
help you tackle difficult circumstances. When you have a positive attitude, you are much better equipped
to deal with stress in a healthier way. An optimistic worldview may also help you be grateful for the
good things in life.

→ Learning from your mistakes

Mistakes and failures are inevitable in life. Although, one can achieve success by trying and failing
many times. Learn from your previous failures and try to put that learning into practice. Re-examine
what went wrong to understand where you have to improve. Try to gain the necessary skills, knowledge
or tools to avoid pitfalls in the future. Keep reviewing your progress at regular intervals and try to avoid
repeating the same mistakes.

→ Being open to new things

An openness to new things can improve your opportunities for gaining new experiences and learning
about new possibilities. Be open to new ideas, methods and experiences. Try out unconventional
strategies to perform routine tasks. Approach your goals from a different perspective occasionally. There
can be a number of effective ways to accomplish a task. You can adopt different ones until you find the
one that suits you. Challenge yourself and set achievable goals which can help you improve.

→ Taking risks

Taking risks might be challenging for most people. People tend to stick to what they know, but that
limits the possibility of finding something better. Try out different strategies and methods. Take well
researched, smart risks which can turn out to be very fruitful.Explore and study potential liabilities and
outcomes, and prepare for them in advance. Develop an aptitude for taking risks. You may come across
a few failures, but eventually, you can learn to recognise the risks that are worth taking. You can start by
taking small risks and once you have become comfortable, you can gradually take bigger calculated
risks.

→ Working hard

There can be no substitute for hard work. It is an essential requirement if you want to be successful,
whether it is in your personal or professional life. Working hard may not come easily, but with
consistent effort, it may become easier. Hard work may also earn you respect and recognition and
impact your work positively. You may be able to enhance your work ethic through
practice.Related: Tips on How To Work Hard for a Successful Career

→ Always being prepared

Preparation is crucial to achieving success. Whether it is for a meeting or a presentation, always ensure
that you do your own research. This can help you to contribute meaningfully to any conversation, ask
relevant questions and come up with solutions. Try to plan your work and prepare your skills so that you
are ready for any problems that may arise. The future can be uncertain, so it never hurts to be
prepared.Related: Fulfillment Manager Resume Sample With Tips

Tips For Measuring Success In Life

It is often hard to measure and define success. Success can be based on what people consider to be
important in their lives. For a business, you have tangible figures to help you determine whether it is
profitable or not. For individuals, it is very hard to determine and quantify success. Achieving goals
usually gives people a sense of accomplishment. Hence, it is important to identify these goals.Here is a
list of things to keep in mind while you measure success in your life:

Explore your values: Find out what you value most. It is easy to sideline your own values and go with
what people generally consider as success.

Try not to compare yourself to others: Your success cannot be measured in comparison with the success
of your peers. Try to avoid comparison and instead focus on self-improvement.

Success does not happen overnight: Try not to measure your success through immediate results. Even if
your attempt was not successful, you may have gained a lot of experience and knowledge from it.

Make progress: Evaluate your success over a period of time. If you have evolved and improved from the
past, then it means that you have made progress.
Have consistency: Being consistent over a longer period of time may yield the best results. Even though
you may be met with a lack of success initially, if you are able to maintain a consistent level of
dedication over a period of time, then it can produce favourable results.

2.2Funding

Funding is the act of providing resources to finance a need, program, or project.

While this is usually in the form of money, it can also take the form of effort or
time from an organization or company. Generally, this word is used when a firm
uses its internal reserves to satisfy its necessity for cash, while the
term financing is used when the firm acquires capital from external sources.
Source of funding include credit, venture
capital, donations, grants, savings, subsidies, and taxes. Funding methods such as
donations, subsidies, and grants that have no direct requirement for return of
investment are described as "soft funding" or "crowdfunding". Funding that
facilitates the exchange of equity ownership in a company for capital investment
via an online funding portal per the Jumpstart Our Business Startups
Act (alternately, the "JOBS Act of 2012") (U.S.) is known as equity
crowdfunding.
Funds can be allocated for either short-term or long-term purposes.

Purpose of Funding
＊Research funding

Research funding is funding used for research-related purposes. It is most often used to
describe funding in the fields of technology or social science. The allocation of funds are
usually granted based on a per project, department, or institute basis stemming from
scope of the research or project. Research funding can be split into commercial and non-
commercial allocations. Research and development departments of a corporation
normally provide commercial research funding. Whereas, non-commercial research
funding is obtained from charities, research councils, or government agencies.
Organizations that require such funding normally have to go through competitive
selections. Only those that have the most potential would be chosen. Funding is vital in
ensuring the sustainability of certain projects.
 ＊Launch a business

Entrepreneurs with a business concept would want to accumulate all the necessary
resources including capital to venture into a market. Funding is part of the process, as
some businesses would require large start-up sums that individuals would not have. These
start-up funds are essential to kick-start a business idea, without it, entrepreneurs would
not have the ability to carry out their concepts in the business world.

＊Uses on investment

Fund management companies gather pools of money from many investors and use them
to purchase securities. These funds are managed by professional investment managers,
which may generate higher returns with reduced risks by asset diversification. The size of
these funds could be as little as a few millions or as much as multi billions. The purpose of
these funding activities is mainly aiming to pursue individual or organization profits.
Types of Funding

＊ Personal Funding

Personal funding involves using personal finances to fund an initiative. This could include
savings, personal loans, or funds from friends and family. It is common in the early stages
of a business or project when other sources of funding may not be accessible.
＊ Corporate Funding

Corporate funding involves funds provided by corporations, often in the form of

investments or loans. Corporations might provide funding for other businesses, especially
in industries where there is a strategic benefit.
＊ Government Funding

Government funding is provided by local, state, or federal governments to support specific

projects or activities. This type of funding can come in the form of grants, subsidies, or
loans. Government funding is often aimed at promoting public policies or supporting
economic growth and development.
＊ Angel Investors
Angel investors are affluent individuals who provide capital for a business start-up and
small business, usually in exchange for convertible debt or ownership equity. They are
often among an entrepreneur's family and friends. The funds they provide can be a one-
time investment to help the business get off the ground or an ongoing injection to support
and carry the company through its difficult early stages.
＊ Venture Capital

Venture capital is a type of private equity and a form of financing that is provided by
firms or funds to small, early-stage, emerging firms that are deemed to have high growth
potential or which have demonstrated high growth. Venture capital investments are
generally made in exchange for equity in the company.
＊ Grants

Grants are funds provided by one party, often a government department, corporation,
foundation, or trust, to a recipient, typically a nonprofit entity, educational institution,
business, or individual. Unlike loans, grants[6] do not need to be repaid.

＊ Loans

Loans are borrowed sums of money that are expected to be paid back with interest. They
can be provided by banks, credit unions, or other financial institutions. Loans are a
common form of funding for businesses, individuals, and governments.
＊ Equity Financing

Equity financing involves raising capital through the sale of shares in an enterprise. Equity
financing is essentially the sale of an ownership interest to raise funds for business
purposes. This type of financing is typically used by startups and growing businesses to
raise capital.
＊ Debt Financing

Debt financing involves borrowing money to be repaid, plus interest, at a later date.
Common types of debt financing include traditional bank loans, personal loans, bonds,
and lines of credit. This form of financing is advantageous because it does not require
giving up ownership of the business.
＊ Guarantees

One form of guarantee creates a conditional liability to make a payment, whereby the
guarantor will pay the principal debt holder fails to do so. Effectively when the liability to
make a payment is trigged the guarantor becomes a funder.

Methods of Funding
＊Government Grants

Government could allocate funds itself or through government agencies to

projects that benefit the public through a selection process to students
or researchers and even organizations. At least two external peer-reviewers and
an internal research award committee review each application. The research
awards committee would meet some time to discuss shortlisted applications. A
further shortlist and ranking is made. Projects are funded and applicants are
informed. Econometric evidence shows public grants for firms can create
additionality in jobs, sales, value added, innovation and capital. For example, this
was shown to be the case for large R&D grants,as well as smaller public grants
for the tourism firms or small and medium sized firms in general.
＊Crowdfunding

Crowdfunding exists in mainly two types, reward-based crowdfunding and equity-based

crowdfunding. In the former, small firms could pre-sell a product or service to start a
business whereas in the latter, backers buy a certain amount of shares of a firm in
exchange of money. As for reward-based crowdfunding, project creators would set a
funding target and deadline. Anyone who is interested can pledge on the projects. Projects
must reach its targeted amount in order for it to be carried out. Once the projects ended
with enough funds, projects creators would have to make sure that they fulfill their
promises by the intended timeline and delivery their products or services.

＊ Raise from investors

To raise capital, you require funds from investors who are interested in the investments.
You have to present those investors with high-return projects. By displaying high-level
potentials of the projects, investors would be more attracted to put their money into those
projects. After a certain amount of time, usually in a year's time, rewards of the
investment will be shared with investors. This makes investors happy and they may
continue to invest further. If returns do not meet the intended level, this could reduce the
willingness of investors to invest their money into the funds. Hence, the amounts of
financial incentives are highly weighted determinants to ensure the funding remains at a
desirable level. Venture Capital (VC) is a subdivision of Private Equity wherein external
investors fund small-scale startups that have high growth potential in the long run.
Investors receive a portion of the company’s equity in return for the money invested by
them. The amount of money that a Venture capital firm can raise is predominantly built
on the Principal-agent relationship between the Limited Partners and the Venture Capital
Firm
＊Self-Organized Funding Allocation

Self-organized funding allocation (SOFA) is a method of distributing funding for

scientific research. In this system, each researcher is allocated an equal amount of
funding, and is required to anonymously allocate a fraction of their funds to the research
of others. Proponents of SOFA argue that it would result in similar distribution of
funding as the present grant system, but with less overhead. In 2016, a test pilot of SOFA
began in the Netherlands.
＊Securing loans

A company or an individual may secure a loan to get access to capital. Often borrowers
must use a secured loan where assets are pledged as collateral. If the borrower defaults,
ownership of the collateral reverts to the lender. Both tangible and intangible assets can be
used to secure loans. The use of IP as collateral in IP-backed finance transactions is the
subject of a report series at the World Intellectual Property Organization.
2.3Growth and Performance of new Venture
3. Business Models and Capturing Values
3.1 What is a business model
3.2 Why use Business Model
3.3 What’s is in a Business Model
3.4 Business Model Innovation
3.5 Generic and Specific Business Models

Business models can be broadly categorized into generic and specific types. Understanding
the difference between these two categories can help entrepreneurs and businesses choose
the right approach for their unique situation. Here’s an overview:

▎Generic Business Models

Generic business models are broad frameworks that describe how a business creates,
delivers, and captures value. They can be applied across various industries and sectors.
Here are some common generic business models:

1. Product-Based Model:

• Description: Businesses sell physical goods to customers.

• Examples: Retail stores, manufacturers, e-commerce platforms.

2. Service-Based Model:

• Description: Businesses provide services rather than tangible products.

• Examples: Consulting firms, hair salons, repair services.

3. Subscription Model:

• Description: Customers pay a recurring fee to access a product or service.

• Examples: Streaming services (e.g., Netflix), software as a service (SaaS) platforms

(e.g., Adobe Creative Cloud).

4. Freemium Model:

• Description: Basic services are offered for free, while premium features require
payment.

• Examples: Spotify, LinkedIn, many mobile apps.

5. Marketplace Model:

• Description: A platform connects buyers and sellers, facilitating transactions between

them.

• Examples: Amazon, eBay, Airbnb.

6. Advertising Model:

• Description: Businesses provide free content or services while generating revenue

through advertising.

• Examples: Social media platforms (e.g., Facebook), search engines (e.g., Google).

7. Franchise Model:

• Description: A business licenses its operations, branding, and business model to

franchisees.

• Examples: McDonald's, Subway, 7-Eleven.

8. Direct Sales Model:

• Description: Products are sold directly to consumers, often through personal networks
or independent representatives.

• Examples: Avon, Amway.

▎Specific Business Models

Specific business models are tailored approaches that apply the principles of generic
models to particular industries or niches. These models often incorporate unique elements
that address specific market needs or customer behaviors. Here are some examples:

1. E-commerce Subscription Box:

• Description: Customers receive curated boxes of products on a regular basis (monthly,

quarterly).

• Example: Birchbox (beauty products), Blue Apron (meal kits).

2. On-Demand Services:

• Description: Services are provided immediately upon customer request through a digital
platform.

• Example: Uber (ride-sharing), DoorDash (food delivery).

3. Crowdsourcing Model:

• Description: Businesses leverage contributions from a large group of people to generate

ideas or content.

• Example: Wikipedia, Kickstarter (crowdfunding).

4. Peer-to-Peer Lending:

• Description: Individuals lend money to other individuals through an online platform,

bypassing traditional banks.

• Example: LendingClub, Prosper.

5. Social Enterprise Model:

 • Description: Businesses aim to achieve social or environmental goals while generating
profit.

• Example: TOMS Shoes (one pair donated for every pair sold), Warby Parker (glasses
for those in need).

6. Data Monetization Model

• Description: Businesses collect and analyze data to provide insights or sell the data to
third parties.

• Example: Nielsen (market research), credit bureaus.

7. Licensing Model:

• Description: Businesses license their technology or intellectual property to other

companies for a fee.

• Example: Microsoft licensing its software to manufacturers.

8. Hybrid Model:

• Description: Combines elements from multiple business models to create a unique

offering.

• Example: Tesla combines product sales with a subscription model for software updates
and autonomous driving features.
3.6 Building a Business Model

Building a business model involves several structured steps to ensure that your concept is viable and can
effectively create value for customers while generating revenue for the business. Here’s a step-by-step
guide to help you build a robust business model:

▎Step 1: Identify Your Value Proposition

• Define the Problem: What problem are you solving or what need are you fulfilling?

• Unique Selling Point (USP): What makes your product or service unique compared to competitors?

▎Step 2: Define Customer Segments

• Target Audience: Identify who your ideal customers are. Segment them based on demographics,
behaviors, needs, or other relevant criteria.

• Customer Personas: Create detailed profiles of your target customers to better understand their
motivations and preferences.

▎Step 3: Determine Revenue Streams

• Monetization Strategy: Identify how you will generate revenue. Common streams include:

• Direct sales
 • Subscription fees

• Licensing

• Advertising

• Affiliate marketing

• Pricing Strategy: Decide on pricing models (e.g., one-time purchase, recurring payments, tiered pricing).

▎Step 4: Outline Channels• Distribution Channels: Determine how you will deliver your product or
service to customers. This can include:

• Online platforms (e-commerce websites, apps

• Physical stores

• Direct sales teams

• Marketing Channels: Identify how you will reach your customers (social media, email marketing, SEO,
etc.).

▎Step 5: Define Customer Relationships

• Engagement Strategy: Decide how you will interact with customers. Options include:

• Personal assistance

• Self-service options

• Community engagement (forums, social media)

• Retention Strategies: Plan how to keep customers coming back (loyalty programs, personalized
communication).

• Core Operations: List the essential activities required to deliver your value proposition, such as:

• Product development

• Marketing and sales

• Customer support

▎Step 7: Determine Key Resources

• Assets Needed: Identify the critical resources necessary for your business model, including:

• Physical assets (equipment, inventory)

• Intellectual property (patents, trademarks)

• Human resources (skills, expertise)

 • Financial resources (capital, funding)

▎Step 8: Establish Key Partnerships

• Strategic Alliances: Identify potential partners that can help you succeed. This might include:

• Suppliers and manufacturers

• Distributors and retailers

• Technology providers

• Collaboration Opportunities: Consider joint ventures or partnerships that could enhance your value
proposition.

▎Step 9: Analyze Cost Structure

• Cost Analysis: List all the costs associated with running your business model. This includes:

• Fixed costs (rent, salaries)

• Variable costs (materials, marketing)

• Cost Management: Identify areas where you can reduce costs without compromising quality.

▎Step 10: Validate Your Business Model

• Market Research: Conduct surveys, interviews, or focus groups to gather feedback from potential
customers.

• Minimum Viable Product (MVP): Develop an MVP to test your concept in the market and gather
insights.• Iterate and Adjust: Use feedback to refine your business model and make necessary
adjustments.

▎Tools for Business Model Development

• Business Model Canvas: A visual framework that allows you to map out all aspects of your business
model on one page.

• SWOT Analysis: Assess your business's strengths, weaknesses, opportunities, and threats to inform your
strategy.

• Lean Startup Methodology: Focus on iterative development and customer feedback to build a
sustainable business.

By following these steps and utilizing available tools, you can create a comprehensive business model
that clearly outlines how your business will operate, serve customers, and achieve profitability.
REFERENCE

. Kaschny, Martin (2018). Innovation and Transformation. Springer Verlag. ISBN 978-3-319-78524-0.

. ^ Mishkin, Frederic (2012). The Economics of Money, Banking and Financial Markets (Global,
Tenth ed.). Pearson Education Limited. p. 68. ISBN 978-0273765738

. Raza, M. Tanzeem; Natarajan, P. (January 2023). "Factors Driving Venture Capital Investments in
India". Journal of Entrepreneurship and Innovation in Emerging Economies. 9 (1): 62–
79. doi:10.1177/23939575221139944. ISSN 2393-9575. S2CID 256504532.