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Developing A Profitable Business Model: Expert Julian Gnecco-Malagon Shares Key Considerations For Startups

Developing A Profitable Business Model: Expert Julian Gnecco-Malagon Shares Key Considerations For Startups

There are so many  parts to consider when launching a new venture, Julian Gnecco-Malagon says.

Developing a profitable business model is one of the most crucial elements of success. To maximize your chances of success, there are seven key considerations every startup should pay attention to when crafting their business model.

1. Define Your Customer Base

The  step in any successful business model is defining your customer base. Who are you targeting? What do they want? Knowing who your target customers are and what they are will help you craft a more effective sales pitch and better position yourself for success. Understanding your target customer base will help you develop a pricing structure that works for both parties.

2. Identify Your Unique Selling Proposition (USP)

Once you have identified your target customer base, the next step is to have a proper understanding of what makes your product or service unique. This is known as your Unique Selling Proposition (USP). If you don’t have something that sets you apart from the competition, then customers won’t choose you over them – no matter how great your product or service may be. Developing a USP will help give customers an incentive to purchase from you rather than someone else.

3. Analyze Your Revenue Streams

A critical factor in creating a successful business model is analyzing potential revenue streams and determining which ones are most profitable for your company. This means looking at profit margins, cost of goods sold, price points, etc., to determine which revenue streams will generate the highest profits for your company over the long term. Understanding these metrics will allow you to identify which revenue streams should be prioritized and which should be abandoned if necessary. Doing so will help optimize the overall profitability and increase the sustainability of the business.

4. Develop Scalability Strategies

Businesses must continually evolve to stay competitive and remain profitable. This means having scalability strategies that allow for growth as needed without compromising the company’s quality or efficiency of operations and processes. A good scalability strategy should include plans for personnel  and technological upgrades or advancements. Why the need? These efforts can facilitate increased production or speed up processes such as delivery times and customer support services when demand increases beyond current capacity levels within the organization.

5. Monitor Performance Metrics Regularly

It’s also essential to monitor performance metrics regularly to ensure that all strategies being implemented are having the desired effect on the overall profitability of the business. Regular monitoring allows companies to assess whether or not specific strategies need to be changed or improved to optimize performance across all areas of operations – from sales and marketing efforts through production capabilities and delivery times. It also gives companies data-driven insights into what strategies have been working  and where resources might need to be allocated more effectively going forward.

6. Take Calculated Risks

No business model is complete without taking calculated risks. While it’s essential to be mindful of potential pitfalls and plan for contingencies, any successful business must also take measured risks to push the boundaries of what’s possible and stay ahead of the competition. By taking calculated risks, businesses can discover new opportunities for growth and stay ahead of the curve.

7. Adapt To Change

Finally, it’s vital to be adaptable and agile to embrace market changes and quickly adjust your business model accordingly. If there are shifts in customer preferences or industry regulations, businesses must be able to pivot their strategies to remain competitive and profitable quickly. By being open to change, businesses can stay ahead of the curve and keep their business model relevant.


Gnecco-Malagon says crafting an effective business model takes time, research, planning, and hard work – but it doesn’t have to be impossible. By keeping these seven key considerations in mind when designing yours – defining and targeting your customer base; identifying and optimizing a USP; analyzing different revenue streams; developing scalability strategies; monitoring performance metrics regularly – startups can create winning models with significantly higher chances of success.


By Bia Pendelton, California Business Journal

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