Info On the Business Model
If you have been able to develop a prototype on your own and it is ready to be presented to the investors, then you need to take care of many important things first. One of them is developing a business model. Without a business model, the prototype would be worth nothing. The business model would help you in explaining to others about your product, what it does and how the product t will help in creating value for the customer?
Explanation of business model
It is a basic structure that a businessman need to conceptualize in the initial stage so that it helps in supporting the viability of the product and includes the goals and purpose of the organization. Every policies and process which an organization adopts would be a part of the business model. Hence preparing the model is very much critical. During its preparation, you could trade in digital currencies to earn some money quickly as the business won’t have started generating money in this period. Use the service of crypto code to conduct transactions as all the work will be done by it and you can concentrate on the opening of your business.
A business model describes the process in which the organization would create, capture and deliver the value to the customer and for itself. The business model comprises of two parts:
- The first part deals with the designing and manufacturing of the product
- The second part deals with all the activities related to selling services or goods from searching for the right clients to product distribution
Different kinds of business models
Manufacturer- The manufacturer makes the finished products using raw materials. It would either sell the product to middlemen or sell it directly to the customers.
Aggregator- This model has come into existence only in recent years. The organizations would choose a niche service provider and sell that service under their own brand. The money would be earned as commissions.
Distributor- The distributor would buy the goods from the manufacturer and then resell it to the public or retailers.
Franchise- The franchise could be a distributor, retailer or manufacturer. Rather than coming up with a new product, the franchise would use the business model of the parent company and the brand. They need to pay a royalty to the parent company for using that brand.
Retailer- The retailer would sell the product directly to the public after buying the products from a wholesaler or distributor.