Amazines Free Article Archive
www.amazines.com - Sunday, August 25, 2019
Read about the most recent changes and happenings at Amazines.com
Log into your account or register as a new author. Start submitting your articles right now!
Search our database for articles.
Subscribe to receive articles emailed straight to your email account. You may choose multiple categories.
View our newest articles submitted by our authors.
View our most top rated articles rated by our visitors.
* Please note that this is NOT the ARTICLE manager
Add a new EZINE, or manage your EZINE submission.
Add fresh, free web content to your site such as newest articles, web tools, and quotes with a single piece of code!
Home What's New? Submit/Manage Articles Latest Posts Top Rated Article Search
Google
Subscriptions Manage Ezines
CATEGORIES
 Article Archive
 Advertising (133304)
 Advice (160836)
 Affiliate Programs (34733)
 Art and Culture (73674)
 Automotive (145664)
 Blogs (75032)
 Boating (9840)
 Books (17122)
 Buddhism (4124)
 Business (1328357)
 Business News (426309)
 Business Opportunities (366259)
 Camping (10960)
 Career (72696)
 Christianity (15840)
 Collecting (11636)
 Communication (115054)
 Computers (241950)
 Construction (38993)
 Consumer (49679)
 Cooking (17061)
 Copywriting (6566)
 Crafts (18204)
 Cuisine (7538)
 Current Affairs (20384)
 Dating (45774)
 EBooks (19685)
 E-Commerce (48196)
 Education (185187)
 Electronics (83491)
 Email (6390)
 Entertainment (159826)
 Environment (28933)
 Ezine (3039)
 Ezine Publishing (5446)
 Ezine Sites (1550)
 Family & Parenting (110898)
 Fashion & Cosmetics (196387)
 Female Entrepreneurs (11842)
 Feng Shui (130)
 Finance & Investment (310266)
 Fitness (105994)
 Food & Beverages (62861)
 Free Web Resources (7937)
 Gambling (30221)
 Gardening (25093)
 Government (10512)
 Health (629375)
 Hinduism (2205)
 Hobbies (44032)
 Home Business (91545)
 Home Improvement (251326)
 Home Repair (46121)
 Humor (4817)
 Import - Export (5450)
 Insurance (45126)
 Interior Design (29544)
 International Property (3484)
 Internet (190976)
 Internet Marketing (146317)
 Investment (22824)
 Islam (1167)
 Judaism (1356)
 Law (80461)
 Link Popularity (4591)
 Manufacturing (20839)
 Marketing (98754)
 MLM (14136)
 Motivation (18212)
 Music (27000)
 New to the Internet (9478)
 Non-Profit Organizations (4048)
 Online Shopping (129614)
 Organizing (7802)
 Party Ideas (11855)
 Pets (38081)
 Poetry (2234)
 Press Release (12671)
 Public Speaking (5618)
 Publishing (7523)
 Quotes (2407)
 Real Estate (126613)
 Recreation & Leisure (95261)
 Relationships (87453)
 Research (16157)
 Sales (80314)
 Science & Technology (110170)
 Search Engines (23449)
 Self Improvement (153093)
 Seniors (6230)
 Sexuality (35942)
 Small Business (49281)
 Software (82986)
 Spiritual (23462)
 Sports (116077)
 Tax (7658)
 Telecommuting (34065)
 Travel & Tourism (307231)
 UK Property Investment (3118)
 Video Games (13424)
 Web Traffic (11726)
 Website Design (56808)
 Website Promotion (36558)
 World News (1000+)
 Writing (35763)
Author Spotlight
JOANNA MORGAN

Joanna Morgan has a huge passion for making money online from home and enjoys traveling around the w...more
ADRIAN JOELE

I have been involved in nutrition and weight management for over 12 years and I like to share my kn...more
ANISH SAH

My Name is Anish Sah, I am an Internet Marketing and SEO Expert, Social Media Guru and young Entrepr...more
SHOVON JOARDER

Shovon Joarder has been working as Freelance Marketing Project Manager for over four years. He also ...more
UDAY PATEL

Uday Patel Uday is a freelance content writer and search engine optimiser. He writes on diverse...more


The Business Model: Central to the Business Plan by Alex Silensky





Article Author Biography
The Business Model: Central to the Business Plan by
Article Posted: 12/05/2016
Article Views: 756
Articles Written: 1
Word Count: 636
Article Votes: 0
AddThis Social Bookmark Button

The Business Model: Central to the Business Plan


 
Business,Small Business,Finance & Investment

All business plans describe the business model in one way or another and for a good reason. The business model is the heart and soul of the business because it explains how the business makes money or the economic and conceptual basis for operating. It describes how an organization creates and delivers value to the marketplace, and in return captures value for ongoing operations.

Yet, people use the term loosely because a business model can take many different forms. The first step is identifying the elements of the business model, eventually putting them together in a way that creates the most value. The first piece is the customer set. Who will the business sell to, creating value for the customers and the business in the process? Embedded in this question is the identification of the particular problem or need of the potential customers.

 

Offering a Solution

The next piece is determining what solution the business offers to solve the problem or fulfill the need. Value is created when a solution is offered that the market likes and appreciates. It is also generated on different levels. Sales have economic or extrinsic value, but meeting a customer need also offers intrinsic value. When people experience a higher quality of life because of a product or service a business offers, they will experience satisfaction and are more likely to become repeat customers.

The next piece of the business model are the distribution channels that will be used to get products or services to the customers. These channels include the internet, delivery services, wholesalers or distributors, and over-the-counter or in-person sales, to name a few. Logistics often do not get enough attention, yet they can make or break a business. For example, late deliveries, wrong deliveries, or failed deliveries can give a business a poor reputation for reliability.

 

Getting the Flows Right

That leads to customer service and customer engagement. Getting and keeping customers requires a business model that successfully puts the pieces together in a way that delivers the greatest value to the marketplace and produces a revenue stream that sustains the business. At this point, the business model addresses product and service pricing and customer payment processes. How will the customers pay and keep a flow of revenue going on a routine basis? The next question is how the business will keep products and services flowing to the customers? Who are the suppliers that will keep supplies, materials and parts flowing to the business so that it can serve customers?

An important element of the business model is operating costs. Realistically, if it costs too much to operate, forcing prices too high, the business will not survive. Competitors will soon step in with lower prices. The cost structure also has a direct impact on the profit margin.

Clearly, each element of the business model is answering the question: How does the business plan on making money? For a business startup, the business model also considers the timing of the revenue stream in relationship to costs. A new business will often have upfront costs and a period of time when costs exceed revenues while developing a customer base. One of the questions an investor will want answered is: When does the business expect to show positive net revenues?

 

Conceptual Foundation

Once the business model is defined, it is much easier to develop an attractive investor business plan or a business plan for obtaining a loan because the pieces have been carefully fit together to create the most value. Successful business owners think through the details piece by piece to ensure decisions about markets, operations and costs make sense. Even a one-person business needs a business model because it serves as the conceptual foundation for the business purpose, goals and action plans.

 

Related Articles - business plan, investor business plan,

Email this Article to a Friend!

Receive Articles like this one direct to your email box!
Subscribe for free today!

 Rate This Article  
Completely useless, should be removed from directory.
Minimal useful information.
Decent and informative.
Great article, very informative and helpful.
A 'Must Read'.

 

Do you Agree or Disagree? Have a Comment? POST IT!

 Reader Opinions 
Submit your comments and they will be posted here.
Make this comment or to the Author only:
Name:
Email:
*Your email will NOT be posted. This is for administrative purposes only.
Comments: *Your Comments WILL be posted to the AUTHOR ONLY if you select PRIVATE and to this PUBLIC PAGE if you select PUBLIC, so write accordingly.
 
Please enter the code in the image:



 Author Login 
LOGIN
Register for Author Account

 

Advertiser Login

 

ADVERTISE HERE NOW!
   Limited Time $60 Offer!
   90  Days-1.5 Million Views  

 

Great Paranormal Romance

World News


JASON NG

Jason Ng has a huge passion for the health and fitness industry as he strongly believes that having ...more
STEVERT MCKENZIE

Stevert Mckenzie, Travel Enthusiast. ...more
STEPHEN BYE

Steve Bye is currently a fiction writer, who published his first novel, ‘Looking Forward Through The...more
GENE MYERS

Author of four books and two screenplays; frequent magazine contributor. I have four other books "in...more
LAURA JEEVES

At LeadGenerators, we specialise in content-led Online Marketing Strategies for our clients in the t...more
SUSAN FRIESEN

Susan Friesen, founder of the award-winning web development and digital marketing firm eVision Media...more
LANCE CHAPMAN

An experienced, resourceful and highly motivated IT professional, with a proven record of success in...more
MICHAEL BRESCIANI

Rev Bresciani is the author of two Christian books. One book is an important and concisely written b...more
NAIMA ROCCA

Since Naima was a child, writing has been her passion. Influenced by her passion, she received both ...more
LUMINHOME LIGHTING

About Us Luminhome Lighting provide one-stop services in lighting design and manufacture of LED lum...more

HomeLinksAbout UsContact UsTerms of UsePrivacy PolicyFAQResources
Copyright © 2019, All rights reserved.
Some pages may contain portions of text relating to certain topics obtained from wikipedia.org under the GNU FDL license