How To Compose a Home Based Business Model
The home-based business model explains just how a
business expects to make money and how it is
positioned within the value chain.
A traditional retailer’s business model will assume
that the retailer can purchase the correct goods at a
discounted price and sell them for a mark-up to make a
The model will also project a specific amount of foot
traffic and what the revenue per customer will be. A
poorly thought out business model can be the downfall
of a business, especially a small, home-based
The business model design should include the modeling
and description of the company’s value propositions,
target customer segments, distribution channels,
customer relationships and value configurations.
Also included should be the company’s core
capabilities, partner network, cost structure and
If you are seeking out finances for your business, it
is important that you have a well-structured business
This business model will show potential lenders a few
things about you and your business. First, it will
show just how serious you are about your new business
venture. It will also show potential lenders how well
your business may prosper.
Lenders do not want to take on a high risk like a new
small home based business without knowing that there
is an actual need for what the business is providing.
There are many professionals available to help you
write your business model for a fee, but in the long
run of things, it may be the best money you spend to
get your business up and off the ground.