The term “business model” refers to the unique set of rules governing the operation of a certain type of business, be it an online business, a brick and mortar business or a supply chain business. These business models are mostly developed by those who have had limited or no formal business education or training. They thus find themselves thrust into a situation where they need to develop business models that work in their favor and not against them.

There are different types of business models that have emerged and been successfully implemented by entrepreneurs. One of them is what is called the retail sales model or the point of sale business model. This is a model that has successfully flourished in the United States of America and Canada as well. The main reason for this has been the ease of implementation. Almost anyone with a computer and access to the internet can set up his own store and sell his products. This business model and an e business model are therefore very suitable for small enterprises that do not have much money to invest in advertising and other marketing strategies.

Another business model that is very successful is the multi-tier or multilevel marketing or MLM business model. In this business model, a distributor of one product tries to get others to buy that product in order to sell it to them at higher prices. They get commissions for every sale they make. It is a very popular business model. In order to protect their interests, the multi-level or multilevel marketing companies will usually require a lot of start-up cost in terms of investment in equipment, inventory and other marketing strategies.

One business model that has been used by established businesses is the franchising model or the business model where the parent company offers a franchise fee to a retailer or dealer who agrees to sell its products. The dealer then decides whether to sell the products under his own name or to carry the products sold by the franchisor. The franchisor will set the price of the franchise fee and also fix the number of outlets that it wants its dealers to sell its products. This business model works best in markets where the demand and supply of the product is stable.

• Marketing strategies such as direct selling work best when the market is booming or expanding.
• But this is not always the case and in such cases marketing strategies need to be adjusted.
• A new business needs to set up a marketing strategy that will take into account any factors that may affect sales such as competition from similar products being sold in the market.
• In addition to this, a new business needs to conduct market research in order to determine the market trend and how the business will survive in the long run.
• This is especially true in markets where there is high risk of failing such as emerging markets.

It is important for any business to conduct market research in order to determine the profitability of the venture. Without this vital step, any business model will be at risk of failing to make a profit. For example, if the market is blooming, then a business model that involves retailing will work well. However, if the demand for a particular product is rapidly declining, then another business model should be considered such as wholesale or distribution. The key to making a successful business model and an e business model is to have a sound business plan that is updated on a regular basis.