How To Compose a Home Based Business Model

How To Compose a Home Based Business ModelThe home-based business model explains just howabusiness expects to make money and how it ispositioned within the value chain.A traditional retailers business model willassumethat the retailer can purchase the correct goodsat adiscounted price and sell them for a mark-up tomake a

profit.The model will also project a specific amount offoottraffic and what the revenue per customer will be.Apoorly thought out business model can be thedownfallof a business, especially a small, home-basedbusiness.The business model design should include themodelingand description of the companys valuepropositions,target customer segments, distribution channels,customer relationships and value configurations.Also included should be the companys corecapabilities, partner network, cost structureandrevenue model.

If you are seeking out finances for your business,itis important that you have a well-structuredbusinessmodel.This business model will show potential lendersa fewthings about you and your business. First, it willshow just how serious you are about your newbusinessventure. It will also show potential lenders howwellyour business may prosper.Lenders do not want to take on a high risk likea newsmall home based business without knowing thatthereis an actual need for what the business isproviding.