In this fifth part of the series of our ‘Navigating the world of entrepreneurship – Are you ready to start a business?’, we look at developing your business model and this step involves exploring business models to help you choose and develop your own model for your business.
Before you continue with this step, it’s better to have a better understanding of what a Business Model is. Simply put a business model is a description of how your business makes money. It’s also an explanation of how you deliver value to your customers at an appropriate cost. It’s a plan that is easily and quickly used to describe the operation of a business or in your case how you are planning to run your business.
There are various types of business models for different types of businesses. Some models work on their own, some have a mixture of models, while some are new to the market and others have been existing for a very long time! Hence whatever business model you choose, you need to ensure that it aligns with your business idea. If it does not fully fit in with your business idea, there’s no harm in combining models in order to make it work or become viable.
Some of the known business models include retail, subscription, E-commerce, franchise, manufacturing, drop shipping, marketplace, network marketing, agency-based, auctions, on-demand platform, peer-to-peer etc.
We hope you found the above information enjoyable but most of all helpful!
If you’ve missed any of the series of our ’Navigating the world of entrepreneurship – How ready are you to start a business?’, discover them here.