Components Of A Home Business Model
It is essential if you are starting a new, home-based business that you plan every possible thing that could happen.
Not only does this help you reach a goal for the future, it also helps if you are trying to get financing for your home-based business.
This important information is what makes up a home business model. And there are four basic components of each stage of building a business.
A great business model can only be composed after the components of each stage have been identified.
The components of a home business model include the infrastructure. The core capabilities are capabilities and competencies necessary to execute a companys business model.
The partner network is the business alliances with complement other aspects of the business model and the value configuration, which is the rationale that makes a business mutually beneficial for a business as well as its customers.
The offering of a home business model is the value proposition. These are the products and services a business offers.
In short, it is what the customer gets for what the customer pays.
A customer can evaluate a companys value on two broad dimensions with multiple subsets.
The vendors marketing and sales efforts offer a customer value proposition.
Next come the customers. You need to know who your target customers are, the target audience for your business products and services.
The distribution channel is the means, which a company delivers its goods and services to a customer.
This could be through a simple means as the postal service or a major trucking company driving your products across country.
Customer relationship is key in a business model.
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