Business & Finance Corporations

8 Keys For a Home Based Business Model

Every successful home based business has a business model that describes how the company creates, delivers and captures value to all involved.
This whole process is part of a business strategy.
This is an excellent time to look for an online home based business.
A home based business can give you the quality of life that people only dream of.
It's an excellent way to get another stream of income, whether you want to help with finances or replace finances that have been lost during this recession.
It is important to look at your opportunity and evaluate the company's business plan.
There are 8 keys that every successful business model should have.
Ask yourself the following question: What is the...
  • Purpose
  • Offerings
  • Strategies (Marketing)
  • Infrastructure
  • Organizational structure
  • Trading practices
  • Operational processes
  • Policies of the company
The development of a business model originally was a basic model was the shopkeeper model.
This included setting up a store in a location where potential customers would be or displaying a product or service where it would be beneficial.
Over the years this business model became more sophisticated.
In the early 20th century, there was the bait and hook business model.
This included showing a basic product at a very low cost, sometimes at a loss (the "bait"), then charging a recurring amount for the refills, or related services (the "hook").
Some examples of this would be the razor (bait) and blades (hook), computer printers (bait) and ink cartridges (hook), and cell phones (bait) and air charges (hook).
I just know you have seen ads for computers and they give you a free printer but you know that the printer is never truly free because you have to buy the ink to print to it to be of any use.
Cell phones are another example, where the companies are offering free phones, but don't you have to pay monthly fees for minutes to use the phones? In the 1950's new business models came from McDonalds and Toyota.
In the 1960's it was from Wal-Mart and Hypermarkets.
In the 1970's FedEx and Toys R Us; the 1980's was from Blockbuster, Home Depot and Dell Computer; the 1990's from Southwest Airlines, Netflix, eBay, Amazon.
com and Starbucks.
Today, the type of business model depends on the technology that is used.
For example, internet based businesses have created entirely new models that depend entirely on existing or emergent technology.
Using the technology, online businesses can reach a large number of people with minimal costs.
So when you search for a home based business, check to see if the company has a sound business plan.
Does it have a plan that is similar to that of successful businesses? Home based businesses are a growing trend in today's world and being online is continuing to grow even through this recession.
Look for a green company that has business plan where there is an online presence.
Whatever you find, you can be very successful in a home based business with a very good business plan!

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