Online Store Lean Business Modelling

"In the current business climate, the online store market has become increasingly competitive as more and more consumers turn to e-commerce for their shopping needs. To establish a successful and sustainable business in this industry, it is essential for startups to adopt lean business modeling processes.

In my own experience, I realized the importance of applying basic business principles to achieve long-term stability and success. Specifically, making informed decisions about additional projects after considering financial and time constraints in the early stages of a business can be crucial to its survival.

In this blog post, we will explore the key steps involved in lean business modeling and how they can be applied to online store startups. By reducing trial and error and providing a foundation of basic principles, this guide can assist new founders in building a more stable and successful business.

The first step in lean business modeling is customer discovery, which involves identifying a target audience and understanding their needs, preferences, and pain points. For online store startups, this includes determining the specific factors that drive customer satisfaction such as product selection, pricing, convenience, and customer service.

Next, it is important to develop a value proposition that meets the identified needs and sets the startup apart from competitors. This value proposition should be tested with potential customers to ensure its effectiveness in resolving customer pain points.

The third step is to develop a minimum viable product (MVP) that can be tested with real customers. For online store startups, this may involve creating a simple website or mobile app for customers to browse and purchase products. MVPs are designed to test the value proposition and identify areas for improvement.

Even if a seller in an open market shopping mall is limited to using the official sales template provided by the mall, the concept of MVP can still apply. In this case, the MVP represents the basic set of products and services that a merchant must offer to establish a presence in the mall and attract customers.

After developing an MVP, the next step is to acquire customers and monetize the product or service. This may involve utilizing different marketing channels such as social media advertising, search engine optimization, or influencer marketing.

Customer retention is crucial for building a successful online store startup. This involves implementing loyalty programs, personalized referrals, and providing exceptional customer service to create a loyal customer base that generates recurring revenue and contributes to business growth.

Finally, the continuous improvement step involves using customer feedback and data analytics to identify areas for improvement and making changes to the product or service. For online store startups, this could include improving the user experience, expanding product selection, or optimizing pricing strategies.

In conclusion, applying lean business modeling processes is essential for online store startups to establish and maintain successful market share. By understanding the target audience, developing an attractive value proposition, creating a minimally viable product, acquiring and retaining customers, and continuously improving the product or service, startups can build a sustainable and scalable business."

Summary of Lean Business Modeling of Online Store Startup

A. Customer Discovery

The first step in the lean business modelling process is customer discovery. This involves identifying the target customer and understanding their needs, preferences, and pain points. In the context of online shopping malls, startups need to determine who their target customers are and what they are looking for in an online shopping experience. This could include factors such as product selection, pricing, convenience, and customer service.

B. Value Proposition

Once the target customer has been identified, the next step is to develop a value proposition that meets their needs and differentiates the startup from the competition. For online shopping mall startups, this could involve offering a wider selection of products, lower prices, faster delivery, or superior customer service. The value proposition should be tested with potential customers to ensure that it resonates with them and addresses their pain points.

C. Minimum Viable Product

The third step in the lean business modelling process is to develop a minimum viable product (MVP) that can be tested with real customers. For online shopping mall startups, this could involve creating a simple website or mobile app that allows customers to browse and purchase products. The MVP should be designed to test the value proposition and identify any areas for improvement.

D. Customer Acquisition

Once the MVP has been developed, the next step is to acquire customers and generate revenue. This could involve using a range of marketing channels, such as social media advertising, search engine optimization, or influencer marketing. The key is to test different channels and identify the ones that are most effective at acquiring customers at a reasonable cost.

E. Customer Retention

Acquiring customers is only the first step in building a successful online shopping mall startup. The next step is to retain those customers and encourage repeat purchases. This could involve offering loyalty programs, personalized recommendations, or exceptional customer service. The goal is to build a loyal customer base that generates recurring revenue and contributes to the growth of the business.

F. Continuous Improvement

The final step in the lean business modelling process is continuous improvement. This involves using customer feedback and data analytics to identify areas for improvement and make changes to the product or service. For online shopping mall startups, this could involve improving the user experience, expanding the product selection, or optimizing the pricing strategy.