Home Based Business Models

by / Saturday, 12 October 2013 / Published in Turnkey Business

Evolution of Home Based Business Models

The development of business models has a

brief history. The oldest, most basic business model is

the shopkeeper model.

This involves setting up a store in a location

where customers are likely to be and

displaying their product 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 introduced in the early 20th century. This model involved

offering a basic service for a low cost, often at a loss.

This part is the bait. Then by charging compensatory recurring

amounts for refills or other products or services, this

is the hook.

Examples are the razor, which is

the bait, and blades, which are the hook, cell phones

that are the bait and the service charges and

airtime that are the hook.

In the 1950s new

business models came from some of todays well-known companies

like McDonalds and Toyota.

In the 1960s Wal-Mart was

the innovator and the 1970s saw new business models

from FedEx, Toys R Us, the 1980s pushed Blockbuster, Home Depot and

many computer companies to the forefront with

their innovative business models.

In turn, many dot-coms suffered

because of their poorly thought out business models.

Todays business models depend on how the technology

available is used. Entrepreneurs on the Internet

have also created new models that depend on

the emergent of technology.

Using computer technology, a business has

the advantage of reaching a large amount of customers with a minimal cost.

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