A business model is one of the important concepts a person in business must know. Simply put, a business model tells us what a business does and how it makes money. Another way to put it is it’s the logic of the business.
According to an MIT paper, there are 4 basic business models:
Creator. A creator buys the components from suppliers and turns it into finished goods to be sold.
Distributor. A distributor is someone who buys finished goods and resells, in short, a trader.
Landlord. A landlord may own or not own an asset and sells the right to use for a specific amount of time.
Broker. A broker is someone who facilitates sales by matching buyers and sellers.
It is important to have a clear business model as this helps owners and employees understand how the business operates and clear understanding of operations lead to rational decision making at it considers the logic behind the business.
In order to create a business model, there has to be an understanding of these factors:
What the company does
How do they make money
Who gives them the money
However, to get a clear business model the entrepreneur must answer this:
Online selling this pandemic is on the rise. This is because of several factors: efficient logistics, online payment system, people are at home and a new needs brought by the pandemic.
In the last few months there was also a rise in new Facebook groups and stars. 2 of them is homebuddies and Ninong Ry. These groups and personalities help entertain people and promote consumerism, which is good for the economy.
Going back to effective online selling, what could be the different way you can do to close more sale?
There has to be a product need. This one is quite obvious. Your product is something that people would want to buy. In the last few months, home office furniture saw an increase in sales. Reason is the work and study from home. Finding your product is not rocket science, you just need to start with one and learn as you go along.
You need to look good. Your page, photos and descriptions need to be appealing to your target audience. It has to attract attention. Having said, you need to have a little background in branding and design. He is a little tip. Make sure the photos or videos are clear. Use a consistent color and keep it to 3 or less.
Focus on a niche market. This is what is good with online selling; you can target a specific audience. You just need to be clear on what you want to sell and the benefit you are offering. One example is mid-century Manila. They offer vintage furniture from the mid-century modern era. They have a small market but the market is a paying market.
Make purchasing easy. Check your payment options. Since people are going out less, take advantage of payment apps like Gcash or Dragon Pay. Also, be sure to deliver the items right away.
These are 4 basic tips that will help you sell more. Of course, for this to be effective, it has to be done consistently.
The pandemic has caused a great disturbance in the economy. It has closed businesses that resulted to the unemployment of thousands. How can one start from scratch this 2021?
This 2021, its time to break the romanticism of looking into passion and pursuing it, but instead, focus on what successful entrepreneurs have done and that is to seek opportunities in growing industries or strong industries and align with their capabilities.
In preparation for a 2021 program that I will run on starting a business, I asked the wisdom of a veteran economist from a research firm and he gave industries that will be strong this coming year.
The 5 are the following:
Logistics & Distribution
Health and Wellness
Dr. Villegas, an economists from CRC, sees industries related to agri, digital, health and education as industries the will thrive this 2021, and business in travel, fashion, furnishings and non-digital entertainment will have difficulty in recovering.
I don’t really give specific business ideas instead one can look into the industries and see what they can do as their business. It may be based on their experience and network. But if you we to ask me what I will do for myself, I will continue with education of course because that is where my capabilities are and the industry will thrive, if I were to follow the logic of Dr. Villegas. If I were not in education today, I would be in the industry of health and wellness, probably in healthy food.
I do not undermine the importance of passion in business but in 2021 or in any year for that matter, it would be an advantage if one’s passion were aligned with a growing industry. Although of course, other factors are involved too in success like capabilities and network.
This 2021, if you wish to start a business, do it within the predicted industry to increase the chances of creating a successful business.