On identifying an opportunity - which is essentially a gap between the demand and supply, or an innovation to enhance the way this gap is catered to - I am partially ready for business. The first thing that I look out for is “how do I make money”, the next is “how do I deliver what I promised”. This in essence is - “Business Model”, and the “Cashflow” details through it is the secret of business success.
A Business Model is the most important decision about which companies have to be clear. There is no single business model that ensures success to all its adopters, each company needs to design its own. Some models are more successful than the other, but there is no guarantee that it would work for me. It is the connection between various domain expertise which is the bed rock of any business model innovation. However, the actual measure of a successful business model is two fold
- how would the business model generate revenue for the company?
- how quickly would it allow the companies to generate revenue?
A business model acquires itself from a multitude of streams like economics, entrepreneurship, finance, marketing, operations, strategy etc. Infact, the significance of a good business model becomes clear when we notice that, an average innovation with a great business model is more successful than a great innovation with an average business model.
Finding the apt business model is the key to survive in this very competitive market. We would explore some of the generally used business models in the forth coming blogs.
Read in Kannada: http://somanagement.blogspot.com/2011/02/blog-post_8953.html
Read more about the Bait and Hook Business Model.