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 company’s
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 company’s 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.