The term business model is used loosely to describe how a business operates, but what is it as its simplest? Our CEO, Natalie Foley, breaks it down into simple terms and describes how a business model develops around a consumer need and evolves quickly through testing that de-risks concepts.

Here’s how we developed a new-to-the-world athletic apparel company:

  • We first uncovered needs by going directly to our customers in the market – athletic apparel stores and their homes – to observe and learn about pain points directly.
  • From there, service concepts were tested by going back out to the customer and getting their feedback in a co-creative way, including testing for early signals on how much and how a customer might be willing to pay for the concepts.
  • We landed on an experience and a business model to test with it. We identified KPI’s and structured an in-market experiment (pre-beta) that felt real to the customers, who were actually paying on a subscription basis.
  • After 2 months of testing with a scrappy lo-fi operational model, we paused to reflect on the learnings. This helped us de-risk the commitment to a subscription-based revenue model, increased our knowledge of operational complexities, and built our confidence to continue testing the venture at even higher-fidelity.

Do you have a business model that’s still coming into focus? Are you interested in experimenting with new business models at your organization, but not sure where to start? Drop us a line at nfoley@peerinsight.com.


Also, see more examples of our work to test and launch new business models on our Peer Insight Ventures page.  

About Us

Peer Insight helps organizations ignite growth by uniting design, business, and entrepreneurship.

info@peerinsight.com

Find Us

Washington, D.C.
717 D Street NW
2nd Floor
Washington, DC 20004
(202) 506-3804

San Francisco
655 Montgomery Street
7th floor
San Francisco, CA 94111
(336) 430-5403

Get in Touch

For project inquiries, contact Clay Maxwell or Tim Ogilvie

For media inquiries, contact Natalie Foley

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