A business model is the methods by
which a company intends to generate revenues and become profitable.
It defines the manner by which the
business enterprise delivers value to customers, entices
customers to pay for value, and converts those payments
A business model can be simple or complex.
Let's stick to keeping it simple.
define your business model answer the following
Where will you
sell your products or services?. Will it
be at a physical or a virtual location?.
For example, retail location, online (e-commerce
website), directly to consumers, or a
combination of all of those methods.
or services will you offer customers?.
How will you
offer those products and services to customers?.
Will they be sold at wholesale or retail prices,
discounted, etc.?. How will you reach your
Will you sell
only 8 hours per day or will it be a 24/7
operation so that customers can purchase at any
Who is the
target audience for the products and services
that will be offered?.
important to know what your business model is. It
not only helps you to focus your efforts and resources
but it is also important if you decide to raise money to
finance your business. The people you pitch to
(whether that be venture capitalist or bankers) will
want to know how your will generate revenues.
Use the menu
below to learn more about some of the more
models. You are probably familiar with some of
Note: Other models include:
Marketing, Loyalty, Auction, Online Auction, Pyramid,
have to confine yourself to the traditional models.
You can devise your own business model. See some
examples below to get some idea on how you can model
your business to achieve success.