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
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.