Modelling for Success - Elliot Opolion

• The company's value propositions from a customer perspective
• The target market segments to be focused on
• The distribution channels used to reach customers in the target market segments
• The core operating components and efficiencies required to make the business successful
• Where the business is positioned in the value network, considering the commercial interplays with competitors and business partners
• The revenues to be generated by the companys activities and the cost structures pertaining to these activities

Once articulated, the business model is often translated into a high level financial model supported by a range of metrics which are often used as target benchmarks for managing the business.

Commercial businesses derive many benefits from the use of a business model. The key benefits being the provision to management of a blueprint of the operational activities of the business for all to understand, underpinning the business management process with structure and rigour, and the ability to assess the impact of changes to the operating model upon the financial expectations of the business.

Small companies often question the value of investing in a business model. However, when considering its value, it is important to remember the old adage "Those who fail to plan, plan to fail."

Elliot Opolion is the Chief Financial Officer at ADP Employer Services is the worlds largest provider of payroll and HR solutions for SME's. The product - 'Payline' services organizations ranging from 4 - 150 Employees. Services include; payment of employees, payment of PAYG Withholding Tax, payslips, payment summaries etc