Business Model?

To describe business model I decided to go with the basic objective: What are all the most important decisions you make when you design your business?

Developing a right commodity is hard. But there is something which is more harder and it is developing  a good business model. Luckily there is nothing sorcerous about a business model. It’s simply how a business plans to generate revenue and profits.

Business model is a reason or logic of how an organization creates, delivers, and captures value which can be economic, social, cultural, or any other forms of value.

In theory and practices business model includes both formal and informal aspects of business i.e. purpose, offerings, strategies. Whenever a business is demonstrated, it hires a particular business model that explains the design of enterprise aspects in simple terms business model helps in understanding the manner by which the business enterprise delivers value to customers, tempts customers to devote for value and wins over those payments of profit.

Now after getting the idea about Business model it’s important to know popular types of business models  and they are as follows-

• E-BUSINESS MODEL -Dell and Apple are two of the examples which can be included in this category. They sell  PCs and other electronic goods directly online or through fully owned stores in case of Apple. The advantages include direct business-to-business or business-to-customer transaction processing that increases margins and help build the brand experience for the consumer
• Franchisee model- This is not a complete model, but dabs the business model of a flourishing business for doing business transactions. The businesses that follow this particular model are expected to pay fixed share on the revenues to the creator of the business model. Examples include Subway, McDonald's and range of other service providers.
• Advertisement based models for content- Most popular sites rely on this to build their revenues. Here the business creates content and displays an ad  with the content. The advertiser pays the business if the content is popular.

• Selling customer data- This is one of the modern models used by businesses that have large user base and plenty of useful information. Examples include Facebook . Facebook enables third parties to do highly targeted ads to understand the spending pattern and market the appropriate products to them