Business Models—Choosing a Business Model
When choosing a business model I always recommend that it be something that you are passionate about. It seems that when passion is lacking, it is harder to get up in the morning and to do the things that you need to do in order to work your business. So, that would be the first rule. If you’ve thought of an idea, chances are you are somewhat passionate about it, so follow your gut. For some people, passion may be the wrong word to use. If this is YOUR idea, then by all means follow up on it. On the other hand, if it is someone else’s idea and they are asking you to become involved or to invest, and you are ambivalent or somewhat negative about it, it might be best for you to bow out right in the beginning. This can be difficult when it’s a friend, but a true friend will understand and a heartfelt and honest answer should get through. Maybe you could offer your expertise in other areas, something that would not tie up your money and that does not tie you to the project too closely. In reality, just being a supportive friend can be the best you can give of yourself.
The second thing I would do is to look at other businesses similar to what I’m thinking of doing and figure out what it is that I can do differently, or do better, than what my potential competition is doing. If there is no potential competition in the area or demographic that you are looking at, then you don’t have to be quite so creative. In fact, it might be better to leave some of your more creative, which usually means more costly, ideas on the back burner in case someone decides to take your idea and open business next door or down the block. If that happens, then you will have something up your sleeve that can put the competition back in its place.
Then, research! Research! Research! The web is a valuable tool and one which you can use to find out how other similar businesses are doing. Your research should identify the demographic that you will be targeting, how close is the nearest competition to where you would like to do business, and what percentage of the market share like businesses have. Your research should also answer all of the money questions, such as what will the start up costs be, what is the profit margin, how soon you can expect to start making a profit and what will the monthly expenses be for all operating expenditures. If you have a question in your mind, it should be answered, on paper and honestly. And if the answers don’t add up to a positive, then definitely reconsider the business model you are mulling over. On the other hand, if all your numbers add up to making a profit within the first six months, then you have a fantastic, wonderful, can’t fail (maybe) business model and you should pursue it.
Finally, if you cannot find investors for your business model, then you should seriously think about finding a different model to pursue. Most investors have either experience or instinct when it comes to what works and what doesn’t. You may be able to convince a bank to lend you the money, but if you can’t get at least one investor on board, it may be time to do a serious reality check and can one business model in favor of another. Listen to the investors you talk to. If you hear the same thing out of more than one mouth, chances are they are right…and you are wrong.
Choosing the right business model is critical to success. The perfect balance of heart and mind should help you to choose the most successful business model.
May 6th, 2010 at 3:29 pm
[...] Business Models—Choosing a Business Model Published: May 6, 2010 Source: StartupNation Blog When choosing a business model I always recommend that it be something that you are passionate about. It seems that when passion is lacking, it is harder to get up in the morning and to do the things that you n… [...]
May 6th, 2010 at 3:48 pm
[...] StartupNation Blog » Blog Archive » Business Models—Choosing a Business Model [...]
May 6th, 2010 at 8:15 pm
Niche marketing is a good way to promote products and earn money online because there are few competitors yet.;.`
May 8th, 2010 at 11:06 am
I totally agree with your statement on Passion. If you have passion for what you are doing you will do your best and even when you are starting a business and things do not always go perfect you stand up and believe in what you are doing with Passion. If you have no Passion you will allow other people’s opinions and critisms overtake your path to succeeding. Remember, the more you get rejected, laughed at or even called names (you are crazy) remember that your Passion is strong and if you just keep going and do not give up you will be successful and then what will those people say. I’ll tell you what they will say NOTHING. I love what I do.
May 8th, 2010 at 6:12 pm
I find that success is my passion. I have a hard time taking time away from my buisness.
It started out as a part time way of making a little extra money during the weekends. Now it is hard to think of my self doing anything else.
I do however still have critics. It seems like people are always telling me what I should not do.
I find this kind of funny considering it mostly comes from people who have worked for some one else their entire lives.
I have made mistakes, and I am sure I will make some more. But they are my mistakes and I will take appropriate actions to rectify thos mistakes. I will learn from those mistakes and my success and my passion for my success will continue to grow
Jay Jetty
Carpet Cleaning Las Vegas
May 24th, 2010 at 11:00 pm
Niche marketing is a good way to promote products and earn money online because there are few competitors yet.;.`It started out as a part time way of making a little extra money during the weekends. Now it is hard to think of my self doing anything else.
I do however still have critics. It seems like people are always telling me what I should not do.
I find this kind of funny considering it mostly comes from people who have worked for some one else their entire lives.
………………………
@flory
Office Business
June 16th, 2010 at 11:06 am
Totally agree. Being passion-less is a deal breaker. It always shows up in the end result.
June 20th, 2010 at 10:04 pm
it is not always very easy to earn money online, it is a lot of work too.*.:
July 18th, 2010 at 9:57 pm
i also want to earn money online that is why i make lots of webpages and monetize them.,’: