How is business design created...usually from outcome of business processes, various components, organisational structure, activities inside of business and knowledge of the business system. To understand better about the business design we have to understand the structure of the organisation. Many small/medium business can not explain the structure, because they do not know what format of explanation to use. It is better to use few formats (business models) to explain yourself how your business function from the beginning until end, from the input till output. When you break your business in explainable parts, you will be better understand what area of business doing profit and what area of business consuming profit. Same process applied to the business owners. As better we understand ourself, as better we will be able to explain ourself and improve ourselves towards desired goals. The three types of the business model information are general, technical and theoretical. As better we will be understand how to not mix technical information with the theoretical information as better we will be able to understand health of our business. Last point to note, that biggest skill in the understanding of the business model, it is not to use other sources of the knowledge and apply only your way of thinking. As we know 80% business fail in first 2 years, then it prove that majority of the businesses use second-hand information. Use your ideas and assumptions. That way you will be understanding what is working and what is not.
