A Successful business is to identify sources of revenue for business . Provide problem solving product and services for customers with detail of finance planning . Business model describe , how an organization creates, deliver and grab a value . The process of business model is to construction and modification .
A business man plan who approach to design a business model require an approach that allows them to understated how to identify revenue for business .
How to create business model ?
Plan should be short and simple to understand
At a time of making a plan you should keep it in mind . That your plan should be short and simple to understand your business partners and co workers it should be in common language and clear . More information
Should know your Customers demography and physiography
Product launching is not an easy . You should know your customer demography and physiography . Have to do some servery in market to give best product or services . Analysis your competitor for more information
It is an important at every business you should have to make finance planning and make an entries in a book . how much capital you need and which area you will be going to spend it . How much will be your daily expenses . what is your cash flow. more information
Opportunity of market . Analysis a market you will find more opportunities to stand your product ans services . Grab the opportunities and grow your business . Go for opportunities find out and solve your problems
Don’t be intimidated
Don’t be intimidate with what you don’t know . That can be your greater strength . It is not a good sign for business. Ideas is clear to your partners make it work.
Execute the plan
Business model is a blue print of a business . If it is ready to execute start with out delay . Market Don’t stop it will move with a time . may be some one is their with same strategy of yours . If plan don’t work re-think where it went wrong, Check it again what was a loopholes , Adjust as needed try it again .
What types of business model /What are Example of business model
- Direct sale.
- Advertising based
Direct sale Business model
Direct sale method is also know as network marketing . Company is not selling their product with shop they sell product with individual sellers . They try to find out the problem of customers and find out that their product is solve the problem of customers .
Franchise Business model
This model is use to expand your business if your business running successfully in market . Franchise model help to multiply the business and expand fast . Example Alshaya trading Co. This is a big Franchising company in Gulf Country.
Advertising based Business model
Advertising business model help to gather audience . Create an awareness about product and services . Advertising should be eye catching to audience message to engage an audience . Types of advertising model are Print, Direct mail, paid digital media .
Manufacturer Business model
Manufacturer make a finished product with raw material and remove a cost of good sold or making charges and sell product in a bulk quantity to Distributor and retailer some times it also make direct sale to consumer with out middle man .
Distributor Business model
Distributor or middle is a person who purchase a product direct through a company in a bulk quantity with cheap rate and sell to a retailer with a margin of 1 or 2 percent but for this they need to have big ware house . Large amount of capital to purchase a huge quantities and good chain of retailers to sell their product.
Retail Business model
Retailer are have direct connection with customers . They Know the needs of a consumer . Retailer Purchase a small amount of goods from distributor . They make a par level for a month .