Evolution of Home Based Business Models

Evolution of Home Based Business ModelsThe development of business models has a briefhistory. The oldest, most basic business model istheshopkeeper model.This involves setting up a store in a locationwherecustomers are likely to be and displaying theirproduct or service for all the passer-bys to see.

ut over the years, business models have evolved,changed and become more sophisticated.The bait and hook business model was introducedin theearly 20th century. This model involved offeringabasic service for a low cost, often at a loss.This part is the bait. Then by chargingcompensatoryrecurring amounts for refills or other productsorservices, this is the hook.Examples are the razor, which is the bait, andblades,which are the hook, cell phones that are the baitandthe service charges and airtime that are the hook.In the 1950s new business models came from some

oftodays well-known companies like McDonalds andToyota.In the 1960s Wal-Mart was the innovator and the1970s saw new business models from FedEx, ToysR Us,the 1980s pushed Blockbuster, Home Depot andmanycomputer companies to the forefront with theirinnovative business models.In turn, many dot-coms suffered because of theirpoorly thought out business models.Todays business models depend on how thetechnologyavailable is used. Entrepreneurs on the Internethavealso created new models that depend on theemergent oftechnology.

Using computer technology, a business has theadvantage of reaching a large amount of customerswitha minimal cost.