Developing a business model: from idea to success

Do you have an innovative idea for a product or service? It’s a good start, but it’s not enough by itself. Now you need to turn the idea into a viable business model. How you create value with your idea, generate revenue and achieve sustainable growth are crucial to success. A viable business model can only emerge when it is clear which specific problem you are solving for customers, through which channels your offer reaches them, how your services can be provided efficiently and how you ultimately earn money in the long run.

For a business model to exist not only on paper but also work and create value in the real world, it should take a number of factors into account. At its core, it is about a coherent, verifiable interplay of customer benefits, the market, financial returns and implementation strategy.

Value proposition – the core of the business model

The value proposition is a company’s main promise to its customers. It describes the specific benefits a product or service offers – and why this particular offering is the best choice. A persuasive value proposition is much more than an advertising slogan: it is based on addressing real customer needs, clear differentiation from competing offers and generating tangible added value for the target customers.

Distribution channels – how the product reaches customers

Choosing the right distribution channels is crucial for a successful business model. They determine how a company interacts with its (potential) customers and offers its products or services – and how customer relationships can be maintained over time.

Distribution channels fulfill several functions: They affect not only sales and marketing but also customer care and loyalty. Depending on the business model, physical and/or digital channels may be considered:

Typical forms include: 

In practice, many companies combine different revenue models to diversify their earnings base. It’s crucial that the chosen revenue model fits the value creation logic of the business and reflects customers’ willingness to pay.

Key resources – without them, ideas are only theory

Putting a business model into practice can only work when you use the right resources. Resources are all the material and immaterial assets a company needs to create its offer. This includes machines and raw materials, as well as patents, employees and financial resources. They form the foundation with which a company creates, markets and distributes its products or services.

Cost structure – the key to sustainable profitability

A company’s costs include all the expenses necessary for operation and growth. A clean and comprehensive cost analysis is crucial for pricing, profitability and strategic planning opportunities.

Developing a business model is not a one-time event, but an iterative process. Structured approaches help test hypotheses quickly, reduce risks and make more reliable decisions. The following three methods are typically used for a systematic approach.

Business model canvas – making the model visible

The business model canvas is a strategic management tool for the visual representation and analysis of a business model. It comprises nine core components: customer segments, value proposition, channels, customer relationships, revenue streams, key resources, key activities, key partners and cost structure.

In practice, the model is often used in the form of a large poster or digital board. Teams fill in the individual fields with their hypotheses and ideas in order to then play through, question and adapt various scenarios and combinations. Canvas is explicitly recommended as a tool in innovation management, as it provides a structured yet flexible framework for creative business model development.

This method is particularly suitable for startups and SMEs that want to visualize, review or realign their model, for example, to expand into new markets or adapt existing offerings.

SWOT analysis – recognize strengths, manage risks

The SWOT analysis systematically identifies the strengths, weaknesses, opportunities and threats of a company or a project. It is a strategic instrument that systematically answers questions such as: “What are we particularly good at?”, “Where is something lacking?”, “What trends or markets are opening up?”, “What dangers are there?” 

The method combines an internal analysis of resources, competencies and processes with an external consideration of the competition, market and environment. Concrete strategic options and recommendations for action can be derived from the results when they are analyzed.

The SWOT analysis is useful for all companies that want to understand their starting position before developing a strategy.

Lean startup – learn quickly, adjust purposefully

The lean startup method focuses on quickly developing a market-validated product or business model with as few resources as possible. It’s based on the principle: build > measure > learn. An iterative concept that focuses on rapid learning and continuous adaptation instead of long-term planning.

The focus is on the so-called Minimum Viable Product (MVP). This refers to a prototype used to gather real customer feedback. Based on these insights, the product or service is adjusted (referred to as the “pivot”) or further developed. The goal is to find out whether a business model is marketable in short cycles.

This agile approach is particularly suitable for technology-oriented startups and innovative young companies.

We are well-placed as a partner for founders and fast-growing companies. Whether startup or scale-up: We support you with attractive banking offers, individual advice and growth financing.

What sets us apart: We think entrepreneurially. Whether you have questions about founding, growth or strategic challenges – together with our experts and partners from our network, we develop solutions that fit your vision.