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:

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?

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:

1. Digital Services
2. Logistics & Distribution
3. Pharmaceuticals
4. Construction
5. 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.