You want to start your own business? It has always been your biggest dream to be your own boss? Then have a look at this article within the website www.fausbdc.com and find out more about the right routes into self-employment. We will comprehensively inform you about possible ways into successful enterprise as well as about interesting aspects concerning the start, establishment and management of a new business from scratch.
First of all it is important to mention that you will need a so-called entrepreneurial spirit in order to start your own business. Furthermore, another condition or rather requirement when it comes to the establishment of an own business consists in the fact that must be ready to be your own boss. Profound information considering insurances, accounting, taxes, marketing strategies, employees, workplace, company car, channels of distribution, general financing of amongst others office equipment by means of for instance business and commercial loans or credit cards, which are in German called Kreditkarten, and so on do also have to be gathered.
However, what turns out to be the most important thing when starting a business is called ‘business model’. Strictly speaking a business model represents an exemplary description of a business. In other words: A business model defines the principle and accordingly procedure of how a business, company or enterprise creates economic value. This may consequently help give a summary of the respective key factors of business success and tells how the business makes it possible to both deliver and capture profit. By the way, it has also to be mentioned that a so-called business model represents an important part of the general development of a business strategy.
Fact is that without a perfectly developed, successful and coherent business model a company or new enterprise will never have a chance to survive. The reason for this is that a business model describes all core aspects such as for instance the general purpose and structure, essential marketing ideas and sales strategies, channels of distribution as well as trading practices, operational procedures, financial aspects and the organizational planning or rather scheduling of a new business. In other words: A business model tells how to bring success and profit to a business.
Concerning a general business model it can also be said that, according to Stähler, it consists of three main components: value proposition, architecture of value added and revenue model.
- value proposition: This part of a business model tells which benefit a company or business provides. Strictly speaking the benefit refers to both customers and partners of a company. We are talking about a benefit or advantage that customers and partners may derive because of their profound relationship or rather connection with the respective business.
- architecture of value added: This part of a business model describes which services and products are offered on which markets? Furthermore it can be said that the architecture of value added explains how benefits will be generated for the respective customers.
- revenue model: This part of a business model describes how the respective business or company makes profit. Strictly speaking it tells how and from which sources a business succeeds in generating revenue.