The Business Model - Deepstash
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The Business Model

The Business Model

A business model refers to a company's plan for making a profit.

  • It identifies the product or service
  • The target market
  • Anticipated expenses

A business model helps developing companies to attract investment, recruit talent, and motivate management and staff. Established businesses should regularly update their business plans to help anticipate trends and challenges ahead.

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Types of Business Models

There are many types of business models for every kind of business.

  • Traditional business models include direct sales, franchising, advertising-based, and brick-and-mortar stores.
  • Hybrid models include businesses that combine internet retail ...

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Criticism of Business Models

There are two critical factors in judging business models. When business models don't work, it is because

  1. the story doesn't make sense anymore, for example, the airline industry;
  2. the numbers don't add up to profits, that is ...

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Understanding Business Models

  • The primary component of the business model is the value proposition. A value proposition is a description of the goods or services a company offers and why they are desirable to customers or clients.
  • A new enterprise's business model also covers p...

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Special Considerations

A common mistake companies make in their business model is that they often underestimate the costs of funding the business until it becomes profitable.

Many analysts believe that companies that run on the best business models can run themselves.

  • One way analys...

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lucy_d

Investing and saving is not the same thing.

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Understanding Business Models

  • The primary component of the business model is the value proposition. A value proposition is a description of the goods or services a company offers and why they are desirable to customers or clients.
  • A new enterprise's business model also covers p...

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