Business Modeling

Business Modeling - A business model is a company's plan for profitably operating a business within a specific marketplace. 

It identifies the products or services which a business would offer, the business' ideal customers, as well as the business' anticipated expenses. 

An integral part of a business model is its value proposition, which describes the goods or services that a company plans to sell and why such offers would be attractive to its target customers. 

For new brands, a business model should cover projected set-up costs, financing sources, the target customers, marketing strategy, a review of top competitors, projections of revenues and expenses, as well as opportunities for partnership. 

Business models include: direct sales, franchising, advertising-based, brick-and-mortar stores. There are hybrid business models as well, which combine internet retail with brick-and-mortar stores, or with sporting organizations etc. 

Successful companies thrive on efficient models, whereby client needs can be met at a competitive price and a sustainable cost to a starving crowd. 

In conclusion, it is very important to note that a business model may be revised from time to time to reflect changing business environments and market demands.