From Talks with a Consultant who READS Management
The Business Model
The next important thing to figure out in developing an idea into a business and eventually a full enterprise is the kind of business a person is in. That is figuring out, “What business am I in?” The answer to this question aids in determining the kind of business model to adopt. A business model is how the business or enterprise makes money. It is how an idea or thought is commercialized and gets monetized.
A very simple business model is sourcing a product then selling it. Take the case of selling fruits to strangers and neighbors. A person harvests fruits from a tree and sell the same to neighbors or strangers. I am reminded of the lone mango tree, which bears fruits every year, in our backyard and how my siblings made money by selling them to other people. There was always too much for us. Most of the fruits just get overripe hanging on the tree branches and fall to the ground to rot. My sister (or my brother, maybe) thought it best to just sell them and add to their income. It was a single stream of revenue from selling mango fruits from a tree. A very simple business like this can grow and develop over time into a big enterprise.
In a nutshell, figure out how your business will generate income. That is the business model. What do you think? Tell us your thoughts on this. Visit http://www.reads.com.ph.
Chot Velasquez is a Corporate Digital Writer for READS Management Consulting. He digi-scribes and writes business and management news articles.