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Developing a Great Business Model

July 6th, 2015 Staff No Comments »

Great business models depend on developing three “green lights,” or qualities that help the business succeed: finding high-value customers, offering significant value to customers, and delivering significant margins. Great business models also avoid three “red lights” that can derail a business: difficulties in satisfying customers, trouble maintaining market position, and problems generating funding for growth. The list below outlines key factors in determining whether your model meets each green light and avoids the red lights. Examine your own business to see if you meet the criteria for success and, more importantly, to correct any weaknesses you might have.

Green Lights
1. Acquire high-value customers.
High-value customers doesn’t mean rich customers, but customers who meet the following requirements:

  • Are easy to locate
  • Allow you to charge a profitable price
  • Are willing to try your product after minimal marketing expenses
  • Can generate enough business to meet your sales and profit objectives

 

Customers don’t necessarily need to be the end users of your product or service. They could be retailers, distributors, catalogs or whomever you sell your product or service to. If your end users or distributors don’t fit this profile, you can still meet this requirement by attracting high-value customers through partnerships or alliances with companies in the market. Read more »

The Importance Of business Models

June 5th, 2015 Staff No Comments »

The fundamental existence of every company is to create and generate revenue in order to make more profit that is why it has to have business model. These are the specific processes , functions or activities a company uses to produce goods and services in the most effective manner possible

A business company must have a business investment model which is what where to get the amount needed to start it’s operations effectively in order to stand a chance to take off well. A company should also have a business model capital this is what outlines the cash flow requirements of the business firm what it generates and what it incurs. A company should also have gross margin model this is it clearly shows what the company will get from selling a particular product it deals with. A business has to have a Cleary revenue business model this is what it shows what strategy the business has in to enable it to sell and it plans to effectively convince customers to buy them. Lastly a business should have a good operation business model thus is what determines why you have have big stores or stylish and lavish office space. Some of the benefits of having good business models are:

1.Competitiveness

A good business model will enable your business company to be more competitive in the industry and out smart other companies.

2.Financial stability

A good business models will give your company the stability and the ability to withstand the strong challenges you might will encounter while you are operating

3.Information flow

Your business company will make good and profitable decisions if there is free information flow this is enabled when there a good business models put in place

4 . Clearly outline business models will enable the company to increase operations and and efficiency by identifying spots to change and to experiment in order to increase productivity and resource utilization Read more »

The Importance Of business Models

June 5th, 2015 Staff No Comments »

The fundamental existence of every company is to create and generate revenue in order to make more profit that is why it has to have business model. These are the specific processes , functions or activities a company uses to produce goods and services in the most effective manner possible

A business company must have a business investment model which is what where to get the amount needed to start it’s operations effectively in order to stand a chance to take off well. A company should also have a business model capital this is what outlines the cash flow requirements of the business firm what it generates and what it incurs. A company should also have gross margin model this is it clearly shows what the company will get from selling a particular product it deals with. A business has to have a Cleary revenue business model this is what it shows what strategy the business has in to enable it to sell and it plans to effectively convince customers to buy them. Lastly a business should have a good operation business model thus is what determines why you have have big stores or stylish and lavish office space. Some of the benefits of having good business models are:

 

1.Competitiveness

A good business model will enable your business company to be more competitive in the industry and out smart other companies.

2.Financial stability

A good business models will give your company the stability and the ability to withstand the strong challenges you might will encounter while you are operating

3.Information flow

Your business company will make good and profitable decisions if there is free information flow this is enabled when there a good business models put in place

4 . Clearly outline business models will enable the company to increase operations and and efficiency by identifying spots to change and to experiment in order to increase productivity and resource utilization

5.Repetition

A good business models will enable the company apply the the task in consistent manner to make more profit. A company who has clearly defined it’s business models is born to succeed.

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