This post was contributed by Heather Johnson, who writes on the subject of graphic designer. She invites your feedback at heatherjohnson2323 at gmail dot com.
The very reason for the existence of a business is to make money. Even altruistic set ups like non profit organizations have to make enough money to enable them stay alive so that they can continue to satisfy a social need. The germination, growth and sustenance of any company depend on its business model, which is traditionally a strategy that outlines how a company garners revenue. An initial capital not withstanding, any start up must focus on its business model in order to generate enough money to stay in business year after year.
Any model worth its salt must be based on a significant amount of market research and established data. It’s no use investing in building a shopping complex when the whole city is overrun with them. There has to be a need for the service or product you’re hoping to sell; if not, it’s your responsibility to create one. Canny advertising techniques have been known to induce need where there is none – like the campaigns that target children by tempting them with toys and paraphernalia that they have no actual need for. Marketers are wise to the antics of kids – they hold the buying power in their hands and convince (read throw tantrums) their parents to buy stuff for them just because they don’t want to feel left out when among their friends. Peer pressure is indeed a great USP.
Some businesses must rethink their strategies and reorient their business models to suit local trends and tastes or to avoid offending national and religious sentiments. Businesses that are established as franchises in other countries as part of a globalization venture must devote considerable time and effort to determine what will and what won’t sell in those nations.
A good business model ensures that you both fit in with the environment you’re establishing yourself in and stand out by coming up with new and innovative ways of doing business. In today’s world, where one business model finds a large number of takers, it’s important to find out what makes customers happy and what it takes to keep them coming back to you even when the competition is as good or better.
One aspect of business that is a sure winner in terms of continued patronage from customers is customer service; it’s the differentiating factor between a mediocre business and a good one. Given the choice between two organizations that offer products and services of equal quality, customers are more likely to opt for the one with the better customer service department. A good business model must take this fact into consideration when calculating how to rake in the profits.
The advent of the Internet and other new technologies has spawned new genres of business models that offer companies a wide variety of choices and alternatives to make money. While most businesses still choose to go with the conventional models, there are some that take an offbeat path and end up making history. But no matter what the model, the fact remains that organizations must be ready to tweak and fine tune them as and when customer needs and buyer perspectives change.