business expects to make money and how it is
positioned within the value chain.
A traditional retailer’s business model will assume
that the retailer can purchase the correct goods at a
discounted price and sell them for a mark-up to make a
profit.
The model will also project a specific amount of foot
traffic and what the revenue per customer will be. A
poorly thought out business model can be the downfall
of a business, especially a small, home-based
business.
The business model design should include the modeling
and description of the company’s value propositions,
target customer segments, distribution channels,
customer relationships and value configurations.
Also included should be the company’s core
capabilities, partner network, cost structure and
revenue model.
If you are seeking out finances for your business, it
is important that you have a well-structured business
model.
This business model will show potential lenders a few
things about you and your business. First, it will
show just how serious you are about your new business
venture. It will also show potential lenders how well
your business may prosper.
Lenders do not want to take on a high risk like a new
small home based business without knowing that there
is an actual need for what the business is providing.
There are many professionals available to help you
write your business model for a fee, but in the long
run of things, it may be the best money you spend to
get your business up and off the ground.
What are your comments? Please leave one.
Dan and Deanna "Marketing Unscrambled"
4 comments:
In this day and age with the credit crunch - potential depression - we all need to think out of the box .. and work out the best route for us.
An alternative approach is to leave your business model as is .. keeping going for the moment. BUT start again with a different approach ..a blog in your field, then tiny blogs .. utilising all the technologies out there ..buidling credibility and knowledge for your business range .. opening up new doors and probably new income streams.
Thanks - Hilary Melton-Butcher
Positive Letters Inspirational Stories
Hi Dan & Deanna,
You have some great information on your blog! Most business people probably take their business model for granted but the right work on the model can mean the difference between failure and success!
Thank you for your enlightening post!
Pete Baca
The Car Enthusiast Online
Hello Hilary,
Very good information to help anyone that might need it.
The times might be hard right now but that just means to think a little differently to go in a different direction than you might have gone otherwise.
Dan and Deanna "Marketing Unscrambled"
Thank you Peter,
It is always a good idea to keep updating the way that we do things in business. We need to know when things are not working so that we can change them so that they are working again.
Dan and Deanna "Marketing Unscrambled"
Post a Comment