How To Compose a Home Based Business Model

The question you may wish to ask is 'what is a home-based business model?'. A home-based business model typifies just how a business is positioned within the value chain and how its money making opportunity is realised.

With the traditional retailer's business model, it is assumed that the retailer is in a position or has the ability to purchase the correct goods at a very discounted price and offer them for sale with a mark up to enable a profit to be made.

This particular retailer's business model will surely envisage or make provision for a specific amnount of foot traffic and what exactly the envisaged revenue per customer will be. A business model that is poorly
thought may eventualy lead to the downfall of the business especially the small home-based business.

Any home-based business model design chosen should clearly define the company's model and the value propositions. the customer segments targeted, possible distribution channels,value configurations and customer relationship efforts.Other principles to be considered should include companys core capabilities, partner network, cost structure and revenue model.

It is imperative and also very important that anyone seeking finances for his or her business should have a well thought out and a well-structured home-based business model. Your home-based business model will opportune potential lenders an insight to your person and your home-based business model also. In addition, potential lenders will also be able to appreciate how serious you are with your new business and how viable and eventual prosperity of the
business.

Lenders are not prepared to take high risk on ventures like a new small home based business without knowing that there is an actual need for what the business is providing and its viability.

Even though there are many professionals available to help one write your home-based business model for a fee. However in the long run, it may be the amount of money you spend to set up your new homed-based business that really matters.

moses zaccheaus - a writer, author, publisher, philatelic and numismatic teacher.
www.moseszee.com - http://www.moseszee.com/apps/blog

http://moseszee.blogspot.com

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