STEP 2: Business Model
Once I have selected the kind of business I want to do, I would brainstorm how to run the business. In today’s technology, there are many business models to choose from i.e. part time or full time, at home or totally mobile, online or brick and mortar business.
But the key is to choose a business model that fits into My Ultimate Plan. I do this to make sure that I spend the right number of days each month, take the right level of risk, investment wise and attaining the level of satisfaction that I want.
First thing first: How much time do I want to devote to my business?
If I only have three days to spare in a week, I cannot start and run a business full time. I will need to do it part time, to adapt my business to time consuming obligations that I already have, such as my day job, parenting responsibilities or other activities that would refrain me from doing it full time.
Once I have determined whether I would do the business full time or part time, I will need to identify the right type of business models to fit into my current situation.
I have complied six common business models here:
1. Home based
2. Brick and mortar
5. Licensing a product
6. Multilevel marketing
Using the latest technology, anyone can create a legitimate and competitive business from home. In fact, this is the cheapest and fastest way to start an enterprise. It can be run full time or part time, Internet or non-Internet based.
Brick and Mortar
It simply means a business with a physical location outside the home, either leased premises or purchased. It involves a dedicated facility, whether retail, wholesale, service or manufacturing. This model usually involves relatively high capital.
There is no foot traffic in this business model. All the customers will purchase online, from A to Z of the transaction. The owner can sell and service the product/service through an Internet portal capable of collecting payment. This can apply to business that sells directly to customers or to other businesses.
This model refers to buying a successful business model, which makes the buyer the “franchisee”. Usually, there will be a franchise fee upfront and a portion of the revenues over time to be paid to the franchisor. Everything the franchisee needs to know on starting and running the business is provided by the franchisor, including the equipment and sometimes, goods and services.
Licensing the Product
Any designer, expert, innovator or anyone creative enough to conceive a product or invention that people would buy but do not want to run the business, can still take advantage of a great product idea or invention by licensing it to another company that has the entire infrastructure in place to effectively manufacture, market and sell it.
Multilevel Marketing (MLM)
This is another business that could be started instantly and with low startup cost. However, to excel in MLM, one must have traits of perseverance and determination. MLM is a marketing and distribution structure. People at the top sell to those below them, who in turn sell to those under them. The higher one achieves in the structure, the more income one derives. Anyone chooses this model must be cautious before deciding to jump into the bandwagon as some MLM attracts its members using “greed tactics”!
Whichever option it may be, I would definitely do some research on its pro’s and con’s as well as the level of suitability to the kind of business I am going to venture into.
*Note: Unproven teories to not be shown to my readers! If you need any small business startup help, feel free to visit my Website
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