The Internet Business Model Differences

The internet business model has distinct similarities and distinct differences from the non-digital business model. Nearly any non-digital business model can be translated to an internet business model.

An auction business model is translated to online auctions in the form of eBay and other less well-known sites. The same kinds of strategies apply with online auctions as in non-digital auctions, the auctioneers make a commission from the products sold and the transactions are taken care of by the auctioneers as well.

Another model taken from a non-digital source is multi-level marketing models, better known as pyramid schemes. In this model, a hierarchy is formed when salespersons bring new salespersons under them in the business.

Someone participating in a multi-level marketing model makes money from those below them in the hierarchy for a predetermined number of levels as well as their own efforts. Unfortunately, the downfall to multi-level marketing models is that they are commonly associated with internet scams where you are required to pay so much a month to receive the services offered by the company in question.

Multi-level marketing models sell products to make the commission to keep the business running. Unfortunately, the market has been flooded with scams that there is a lot of skepticism of this kind of internet business model.

The franchise style of non-digital models have translated to affiliate marketing sites where a company hires people to sell their products for them using a proven effective model. So as McDonald’s franchises will give new restaurants the business model to follow, an online business will provide their new franchisees the means to succeed by following a simple system.

A monopolistic internet business model can be seen with a provider like Amazon who has basically dominated the internet book selling business. The great and, in cases of competition, unfortunate thing about internet marketing is there are no international laws against internet monopolies. The consumers who will avoid a company because they seem more like a monopoly and want to avoid ‘feeding the machine’ so to speak largely regulate monopolies.

A huge internet business model emerging is the professional open-source model. This model offers a free service, such as a Spyware Bot that works remarkably well for free. Then the company who creates the Spyware Bot also offers an even better product for a marginal fee depending on the degree of protection a user might need.

This type of model can be likened to getting free samples at a grocery store then going back and buying the product because it works well. A downfall of the open-source model is that some of the programs offered in this way allow the user to do illegal things with the programs, such as illegal downloading of music and/or movies. The open-source community on the internet is huge and there is still room for growth by anyone who is in favor of free licensing of products and the free exchange of any and all information.

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How to Create a Winning Business Model

Innovation is a critical source of competitive advantage and certainly deserves the attention it receives. But innovation is also difficult to manage and something many organizations struggle to repeat (if they were lucky enough to experience it once). Recognized innovators are widely admired for their achievements but as every business leader knows, the pursuit of innovation is exceptionally challenging even as it is entirely necessary.

The roots of the problem lie in the fact that innovation takes place at the crossroads of two critical uncertainties: uncertainty about the future, and uncertainty about what will be best for our organization.

Given these issues, executives face two key questions:

First, What innovations should our organization be pursuing?
And second, How should we create them?
We respond by noting that among the four types of innovation that any firm could pursue, business model innovation should be highly attractive and pursued aggressively. Why? Because these innovators are earning very attractive returns on capital, and finding new market opportunities that others have overlooked. But business model innovation is also widely misunderstood, and consequently few organizations are reaping the significant benefits that can come from doing it well.

Why is business model innovation important for every company? How can organizations develop breakthrough business models of their own?

Four Types of Innovation

Organizations typically must allocate their innovation investments among four types of innovation: incremental, breakthrough, new venture, and business model.

The purpose of incremental innovation is to maintain market share. This is a maintenance strategy and necessary for any organization to ‘stay in the game.’ But incremental innovation rarely confers much of an advantage and is not sufficient to support growth.
The search for breakthroughs offers a shot at stardom, but as they are quite rare, pursuing breakthroughs is recognized to be a high risk approach.
Successful new ventures can position a company for the very long term, but they are also high risk, capital intensive, and for good reasons they are rarely attempted.
In today’s business environment, this leaves the fourth option as the most attractive. Business model innovation can be the most cost-effective form of innovation, and for many companies it can also be the most promising route to success.
Recent research by IBM has shown that business model innovators are earning the most attractive returns on innovation investment, and also achieving the best rates of growth. In fact, if you look at the most successful and admired companies of the last twenty years, you see that most of them have focused on developing innovative business models. What company would not want to be included on this list of business model innovators: Amazon.com, Apple, Costco, FedEx, Google, Ikea, Southwest Airlines, Starbucks, Wal-Mart, and Zara are 10 of the world’s most successful companies, and business model innovation has been the key to the success of each one.

Defining Business Model Innovation

But what exactly is a business model?

At its simplest, a business model simply describes how a company makes money. It’s the products and services it offers, the way it delivers them, and through these elements it is the experiences that it creates for customers.

These innovators just find ways to create better experiences for their customers, and as a result of doing so the most successful among them earn profits that others did not recognize as even possible.

For example:

Google discovered how to sell words at auction, a new model that transformed the company into the world’s number one advertising agency, and soon thereafter into one of its most admired companies.

Amazon.com developed a new model for selling products online, has radically reshaped the book business, and is now working to extend its model into every market.

Apple found a tremendously successful way to sell songs through iTunes, permanently reshaping the music industry.

FedEx set up a system that delivers packages for ten to fifty times more than the Postal Service charges.

Southwest Airlines sells airplane tickets for less than its competitors, but it has nevertheless been the most consistently profitable US airline for two decades.

Wal-Mart, Costco, and Ikea, meanwhile, developed global manufacturing and supply chains that enable them to sell enormous quantities of products at prices once thought unattainably low, undercutting their competitors and redefining the very nature of retail.

To reiterate the point made above, the core of each success is that these companies found new ways to earn profits by providing their customers with new and better experiences. Further, the experiences provided by their innovative models have resulted in enduring relationships that transcended traditional boundaries between customers and companies, and as a result each transformed the industry in which it competes, permanently altering the competitive landscape while becoming a renowned leader.

If business model innovation is the goal, and for most companies the evidence strongly suggests that it should be, then we need a way to get there.

This process of developing a winning business model has 8 steps. These 8 steps enable executives to understand the key drivers of this type of innovation, and to apply them to develop business model innovations of their own.

The Business Model Universe
The External Drivers of Change
The Customer Experience Model
Core and Edge Markets Analysis
Market Leader Analysis
Competitor Analysis: Jobs to Do
Who Innovates?
Putting it All Together: The Complete Business Model Innovation Master Plan
Michael Kaufman is one of the four founders of the global innovation consulting firm – InnovationLabs. We are a full service innovation consulting firm offering a complete suite of innovation consulting services, innovation workshops, and innovation tools. For more information download a free copy of our book Permanent Innovation.

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The BEST Business Model Ever!

Never before in the history of humanity have there been a time as this when the whole world seems to be realizing finally, the very intent and purpose for creation – collaboration. The stiff competition that often characterized the industrial age is gradually giving way to this new age where passion thrives and information rules. Businesses are beginning to awaken to the fact that unless there’s something SIGNIFICANTLY unusual about their business, there’s no way they are going to remain relevant. It is increasingly becoming obvious, that the businesses that will thrive in this new age are those who are consistently willing to touch a heart before asking for a hand – being helpful.

No longer will the market tolerate businesses that are out to get before giving, no longer will the market tolerate businesses that are not different and making a difference, no longer will the market tolerate businesses that are not unique and being useful, no longer will the market tolerate businesses that don’t stand for something, no longer will the market tolerate businesses that are not contributing to the success of their customers.

In this new age, the law of exchange which states that; ‘to get, you must first give’ is the standard on which every business that aspires to grow must be built. Every site I visit is now giving away something, mostly an eBook in exchange for my email. Everyone is sharing something, whether it’s a link on Twitter, a video on YouTube or a picture on FaceBook. The whole world seems to be in the business of helping someone. To thrive in this new age, being Helpful must become your new business model. Woven under the very fabric of your business must be a strong desire to help. Your business must be built on the principle of helping someone accomplish a particular goal or objective as a result of coming in contact with the product or service your business offers.

What is a Business Model?

Looking at this concept, two words come into play, business and model. For better understanding, I am going to separate them and look at each individually, ok?

The Meaning of Business

A business is a social institution that provides a product or service to a particular group of people known as customers or clients for a particular agreed fee or price.

The first word in the definition that I will like to talk about is social institution. A business at its core is purely built on social interaction. Meaning, everything in the world of business revolves around people. Your employees are people, so are your customers and your suppliers and bankers and lawyers and partners or investors. There’s no way you can do business outside of people. So what does this suggest to you? It clearly means that to succeed in business, you cannot avoid dealing with people and when people are involved, the golden rule must apply; “do unto others how you would have them do unto you.” Underlying the golden rule is the law of exchange [giving before getting] at work.

Going back to the definition, you would see the law of exchange at play again. How do I mean? You would notice that the definition of business clearly states that a business must first provide [give] products or services to a particular group of people who would then pay an agreed fee or price [get]. In other words, you are not permitted to get until you give. Therefore, business is a discipline that involves dealing with people through the provision of goods and services that attract payment in return.

The meaning of a Model

A model by itself is the interpretation, representation or simulation of a theory in real life. It’s how we mentally try to imagine or portray what a theory, principle, concept or idea will look like in practice.

According to Dr. Phil Walker,

“Models are used to help us understand how things might work in real life. They are the mental representation of an outward reality. A good working model must be exact enough to give us answers to how things will work yet flexible enough to allow for adjustments and changes.”

In case all of the grammar in the definition above didn’t sink, here’s one that might sink. I’m sure you are very familiar with models, they come in different categories; we have beauty models, fashion models and role models. Picture a fashion model for example, what do they do? They basically portray how a particular design of an apparel or clothing will look like when worn in real life. They are in other words, the representation of what the cloth will look like on your body. Merely looking at them gives you a clue of how it would look on you even though you haven’t actually worn the cloth or apparel yourself. A model works basically in the same manner.

Looking at another example, role models, we all know what they are meant for. They are the physical representations of what we would like our life to look like when it is finally done. They give us a clue that when we lead our life in a particular way just as that of our role model, eventually we’ll be just like them. The same again, is how models in business work. They give us a mental clue, representation or interpretation of what a concept, idea, principle, thought, philosophy etc. will look like in reality.

The definition of a Business Model

In the words of Seth Godin, an international bestselling author of 12 business books, entrepreneur and agent of change;

“This classic MBA phrase describes how you set up a business so you can get money out of it. A business model is a machine, a method, a plan for extracting money from a system. Without a business model, a company can get publicity, hire employees and spend money, but it won’t make a profit.”

Below are some sample business models extracted from Seth Godin’s groundbreaking manifesto “the bootstrapper’s bible”. See if you can guess which company each comes from:

1. HIRE THE WORLD’S BEST ATHLETES AS SPOKESPEOPLE.Buy an enormous amount of advertising. Use the advertising to get every sporting goods store to carry your products. Make your product overseas for a very little money. Charge very high prices.

2. FIND LOCAL BUSINESSES THAT CARE ABOUT THEIR EMPLOYEES.Offer them a free water cooler if they allow you refill it. Earn money by making deliveries on a regular basis.

3. CREATE THE OPERATING SYSTEM that runs every personal computer in the world. Then use the power you gain from knowing that system, which controls the computers, to create software, web sites, online services, even travel agencies.

These are the business models of NIKE, POLANDSPRING, and MICROSOFT.

Permit me to add a fourth one; I’m sure you would love this one.

4. CREATE A SOCIAL UTILITY that will allow people to socialize by connecting and sharing things with family and friends online for FREE, then make room for businesses, celebrities and organizations to also do the same, but charge them a token for this in form of advertisement to those who use the platform for free.

You must have probably guessed right, Facebooks business model.

Therefore, a business model is the way a company has decided to setup and portray itself in such a way that it is able to attract money [get] by providing specific products or services [give]. It basically serves as a framework, blueprint, or prototype that attempts to describe or capture the underlying, thought, philosophy, idea, concept, principle, or mindset that will drive or guide the operations of a business in real life in a way that will allow it to be profitable. It’s an ideal representation of what the operations of a business would look like in reality woven around a particular mentality or philosophy. That is, it gives a clue about how your business should be done in the real world. A business model is not the same as a business plan. A business plan is a strategic course of action. Meaning, it basically outlines several action steps a business should take as regarding different aspects of its operation.

A business model on the other hand is not a list of action steps, it is not as tangible or concrete as a plan, but rather, it’s a conceptual or mental projection of your business when it is ready. It doesn’t present action steps as a business plan does; it presents the actual picture of the business when the action steps have been executed for maximum results. The business model is what is underneath the business plan. Meaning, a plan is built on a model. So without a model, a plan cannot be created. A model is what guides the creation of a plan. It is the business model that gives a business plan its inherent meaning.

Creating A Plan Built On The Desire To HELP

The desire to help must underlie everything your business represents and does. You can have the best business plan in the world, if it is not built around a strong ideology or philosophy of helping others [those you’ve targeted to be your customers], then your plan is as good as useless. Your business must be built on and around the desire to sincerely provide help in the form of product or services to those it serves. How you create, communicate and deliver this help is totally up to you, but the key thing here is to understand that help is the new business model. That is, helping people is the new way of looking at and doing business, unless, you don’t want to succeed. Therefore, only those companies who are in the business of providing help will succeed in this new age.

So what then is the meaning of HELP?

Helpin the context of business and in life, means the same thing. A business provides help so do other non-profit making organizations concerned about certain aspects of life too. While a business provides help for a FEE, non-profit organizations provides help for FREE. Whichever way you choose to look at it, they are both in the service of providing help.

Helpmeans Value. Let me be more precise; help is adding Value. Value is anything that is capable of providing satisfaction or gratification in one way or another to an individual or group of individuals. Value is something that is worth something to somebody. Value is anything that can be measured as a unit of satisfaction or gratification irrespective of personal preferences. If it can be quantified, then it has value.

How to make HELP Your New Business Model

1. Definition of HELP: The first step to making help your new business model is to sit down and define what you want to call help in your business. Every business cannot provide the same kind of help, so it’s highly important you define your own kind of help because this is what separates your business from all others who are in similar industries or providing similar products or services. So what kind of help do you want your business to provide? In other words, what kind of value do you want your business to be adding to its target customers? Your first task as an entrepreneur is to identify and define the value [help] your business is offering or bringing to the world.

2. Creation of HELP: the second step in making help your new business model after identifying the kind of help [value] your business wants to offer the world is to ask yourself; how do we create this help? That you have identified your company’s definition of help [value] doesn’t mean your company currently possesses or provides that help. After all, you cannot possibly give what you do not have. So the next step is to create your own version of help [value] which you’ve decided to offer the world in exchange for money.

3. Communication of HELP: no one will ever know that your business has identified and created something of value to the world if it never comes out to proclaim such a thing exists. There are a million and one people in the world who are in need of the kind of help [value] your business has identified and created, it is the responsibility of your business to make the existence of such help known to the world. This is the place of communication. You have to announce the existence of your company’s rare kind of help [value] so that those in need of it can come for it while giving you money in exchange for the help your business provided.

4. Delivery of HELP: the final step in making help your new business model is the actual delivery of the help you have identified, created and communicated to the world that your business offers. In delivering the help [value] you want to be sure that it is exactly as you have communicated. You certainly don’t want to over promise and under-deliver. So make sure you deliver on the same quality and quantity of help [value] you have previously communicated. Doing this makes your business indispensable in the eyes of the world or those you serve.

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Online Business Models – 8 Top Business Models For Making Money on the Internet

Traditional offline business models have been adapted for the internet but remain very similar online as to the offline world. In essence all models provide some form of product or service in exchange for financial reward.

However not all online business models are equal. Selecting the right model for your online business warrants careful consideration because each model requires different skills and time commitments to operate. Not all models will suit you or compliment your business interests. Also, you will discover that different business models will appeal to you at different stages of your career as an online marketer.

Auction Model

Love a good garage sale? Are you an expert or enthusiast in a certain field? Are you a wholesale or retail merchant looking for an additional sales outlet? Or were you already familiar with buying and selling your wares at the traditional auction houses before the advent of online auctions?

You may well enjoy the global reach of online auctions.

Many people have made a lucrative online income by selling goods through auction sites such as eBay. An enormous amount of information has been written on building a successful eBay business. So if this interests you, create an account and dive in.

E commerce Model

The home of the online shopping cart. Standard requirements for this model are a merchant account, enticing pictures and descriptions of your wares, a shopping cart and a secure method of payment. You can sell your own range of products or opt for a dropshipping model. Dropshipping is where your site takes the orders and another merchant fulfills the orders on your behalf. With dropshipping you don’t need to worry about taking care of inventory or deliveries.

Subscription Model

Create a website packed with interesting information on a particular niche then charge a membership fee to access the site.

Create a ‘free to access’ website packed with information on a particular niche then charge a membership fee to access a members only area filled with extra goodies.

Create a newsletter and charge readers a monthly reader subscription fee.

Create a focused community group, such as a forum and charge users for access to certain areas of the forum.

You get the idea of the subscription model.

Advertisement Model

As with the subscription model, create an interesting, content rich site which generates lots of traffic. You may then attract the interest of an advertising sponsor who will pay you for advertising space on your site.

Alternatively, if your site is not yet well established you could still sign up for a Google AdSense account. Advertisements related to your content will be placed on your site and you receive a payment each time a user clicks on an ad.

Affiliate Marketing Model

The advantage of this model is you don’t need any products or services of your own, which means you can get started right away.

As an affiliate marketer, you promote, recommend and market other peoples products or services. You get paid a commission when a customer buys the product or service from you. Or you can get paid when a customer completes an action such as clicking on a link or entering their email details into a form to receive further information.

The percentage commission you earn per sale usually ranges from 25 – 75%. The amount of money you can earn per sale or transaction can vary wildly from a couple of dollars to hundreds of dollars per sale depending on what you are selling.

Often a prerequisite for selling an affiliated product is that you buy the product first. However this is not always the case and many companies are happy for you to market their product or service without making an initial purchase.

Multi Level Marketing Model

As with affiliate marketing, the multi-level marketing model does not require you to have products or services of your own. MLM has existed for decades offline but has more recently found it’s place in the online marketing arena.

As a multi-level marketer you become an independent representative of an MLM company and you recommend and market the company’s products or services. You get paid a commission on each sale you generate. There is usually a joining fee involved before you can become a representative. This is generally in the vicinity of a few hundred dollars.

The primary difference between affiliate marketing and multi-level marketing is that as an affiliate marketer you get paid only for the sales you personally generate. As a multi-level marketer, again you get paid a commission for sales you personally generate. But furthermore, you can also build a team of marketers who join the company under you and then you get paid a lesser commission for sales your team generates. If your team go on to build a team of their own you get paid again on sales activity generated by their team…and so and so forth.

Commission percentages and compensation plans vary from company to company. Because it is such a highly leveraged business model the percentage commissions are usually much smaller, ranging from 0.25 – 10%. The idea being that small increments amass to a large income by leveraging the combined efforts of many people.

Top Tier Business Model

The top tier business model shares similarities with both the affiliate and the multi-level marketing models, but has some unique differences.

The affiliate model pays for sales generated directly by the affiliate marketer (one level deep). The MLM model pays you for sales generated by you or your team sometimes down to infinite levels, so you can benefit from the efforts of a person you may never even meet, albeit at much smaller percentages.

However between the single level compensation model and the multi-level compensation model there is a a third, top tier model which falls loosely in between.

A top tier model is an affiliate model that usually pays one to two levels down. The thinking is that by paying more than one level deep you still benefit financially from the leveraged efforts of your team. However by not paying commissions to as many multiple levels as a traditional MLM, a top tier company can instead afford to pay a much higher commission at the first and second levels (closer to the vicinity of 50%).

Another key difference with a top tier business model is they are usually more expensive to join than an MLM. A top tier company is often a minimum of a couple of thousand dollars to join. However the benefit is that your commissions are also much higher, usually in the high hundreds to thousands.

The thinking is that this model requires much less effort and much less sales to generate a viable and healthy income.

Information Product Model

This model is often the most lucrative of all. Your information product can be a downloadable ebook, a physical book sent by post, courses delivered as a range of mixed media content such as videos, voice recordings, CDs or DVDs or it can be software which meets a customer need.

You can market the product yourself and retain 100% of the profit. Or, alternatively you can affiliate your product and have an army of marketers selling on your behalf for a percentage of the sale. Leveraging the marketing strength of many affiliate marketers simultaneously can generate huge interest and massive turnover. But keep in mind your product will need to be good in order to attract the attention of affiliate marketers – they have their own reputations at stake by recommending your product.

Realistically, many online businesses build a web presence which combines a number of different business models. This monetizes the site in several ways to create multiple streams of income.

For example elements of the subscription, advertising, affiliate and information/product models may be used all together on one site.

Another site may use e commerce, auction and advertising all together.

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How To Select The Right Home Business Model

Having the right idea is only the start of setting up a business. To run it successfully will depend on the type of business model you select from the beginning. It is wise to speak to an accountant on which option is right for you, however I’ve put together five business models and some key points to consider before deciding.

Business Model #1 – Proprietorship

This is the simplest and most common type of business model. There are no legal obligations to consider you can simply set-up shop and start selling your product or service. If in Australia you will need your Tax File Number and a Business Number to buy from other businesses. Registering for Goods and Services Tax is optional and is only needed once you earn over a certain threshold. A proprietorship gives you great flexibility to start your business on the “cheap” and without any major commitments apart from declaring your sales at tax time. But you should know that setting up this type of business means that you are legally responsible for anything and everything. Other than that this is a very tax efficient business model for small businesses.

Business Model #2 Partnership

A partnership is a relationship between two or more people who come together to run a business and share the profits earned. It is also sometimes know as a “firm”. Typically you would use an accountant and sometimes a lawyer to set it up, but mainly to formalise the rights and duties of all the partners and decide each partners share of the profits.

They are easy to set-up and it means that the business has access to more capital as there is more than one person contributing. Depending on how many people want to form the partnership you may need to check if there are too many of you. One drawback is the fight over power and you do need to check liabilities because personal assets are targeted should there be an issue with credit default.

This model works well for professional service firms such as accountants, lawyers, doctors etc.

Business Model #3 – Company

A company is just one person or a group of people. There is also a variety to choose from depending on the business model such as private, public listed, not-for profit, etc. When I started my business I opted for a private company but setting it up is complex process, expensive and involves much paperwork. But once it is set-up you can run many entities underneath. It is separate legal entity and involves at least a director but can also have shareholders and a board if it’s publicly listed. The best thing about a company is the limited liability. If there is a credit default, personal assets of directors and shareholders stay protected – although you should note since the global financial crisis there has been a big crack down in this area and cases where directors have been fined. For a start-up this business model should only be selected on the advice of your accountant.

Business Model #4 Franchise

A franchise is where you are the boss but don’t have to worry about branding. marking, product creation etc. This hard work is all done for you and is turn-key in the sense that the Franchisor instructs you on the exact method to set up your business so you hit the ground running from day one. The downside is that the marketing, product development, branding and working side of the business are in the hands of the Franchisor so there is little scope for innovation from the Franchisee. There are also royalty fees to pay and the up-front commitment cost.

Franchises come with high levels of support and an established brand name., is that you can find a business to suit all pockets, no matter which industry you want to set foot in. You should consider this model is you don’t like risk and want loads of support and handholding.

Business Model #5 Trust

Many people don’t think of Trusts as a business model but they are a great addition to a company structure. This was the option I also included when I set up my business. The trust becomes the majority shareholder and the trustees are primarily responsible for managing the assets and business for the benefit of the company.

I don’t recommend setting up a Trust on your own. They are often regarded as a Tax loophole and that’s because there is so many was of setting up a Trust. So get your accountant to do it for you.

Trusts allow you to keep control over your assets. This is perfect when you venture into property and don’t want to lose your assets to a relationship that goes sour. Trusts are therefore idea for family businesses, where you want to create a structure that preserves assets for future generations. You could also use a trust where you want to keep long-term control over managing the business.

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Improve Your Business Model Concepts While Testing Specific Changes

Improve Your Business Model Concepts While Testing Specific Changes
By: Ben Needles Home | Business

How can you get your new business model into implementation faster without taking a lot of unnecessary risks?

Relax. While the experiments and tests are occurring, you can be thinking about the best course for your company.

A good place to start is to understand more about the elements that successful business models contain. Then, you can compare where you are with those patterns. The contrasts that come from this comparison will show you where more thinking can produce other ways to make progress while your tests of specific concepts are being conducted.

The most successful business models contain the same important elements, and you need to think about those elements in order to look for and check on ideas for improved business models.

First, the best business model in an industry creates many more resources for its stakeholders than it consumes itself in a ratio that is higher than what competitors offer.

Think of this as creating more financial as well as nonmonetary benefits for all those who come into contact with the company. The greater the ratio of benefit to stakeholders, the better the model.

Cytyc is a good example of such a company. As a start-up, the firm pioneered a new form of Pap smear test that is much more accurate than its predecessor. If a woman has cervical cancer and the disease is discovered early, she can always be cured.

Previously, many women who had cervical cancer received the erroneous information that they did not have cervical cancer when they did (and thus received no treatment) and they did have the cancer when they didnt (and were frightened by an incorrect test result, and may have received unneeded treatment if a repeat test result was also faulty). The health, economic, and psychological benefits of the improved test to the women having the tests are obvious.

The cost of treating the early stages of this cancer is also much less expensive than having the patient get worse or die. This means that the demands on insurers and health care providers are less. Those who pay for health insurance will also have lower premiums. The community also benefits by having these women live longer, healthier lives as people others care about and rely upon in personal, family, and working relationships. Those who care about the woman also benefit from avoiding worry and having to do less to help her deal with her health issues.

Second, each stakeholder perceives that they will benefit more by encouraging the success of this business model than by supporting any other, or by ignoring the company which operates the best model.

When the competitive advantage among business models is very large in favor of each current and potential stakeholder, the companys best interests become the individual stakeholders best self-interest as well. This circumstance can reverses the usual tension among a companys stakeholders interests.

Haemonetics business model offers an example of providing a clear benefit to many stakeholders. Haemonetics is a global company engaged in the design, manufacture and marketing of automated blood processing systems. The company developed a business model vision of making safer and more economical blood components available when needed.

In the late 1980s and early 1990s, there was worldwide concern about transmitting viruses such as HIV through blood transfusions from donors. One of the technologies invented by the company, intra-operative autotransfusion, addressed this issue. Intra-operative autotransfusion allows for salvaging and washing of the red cells (a critical blood component) that would otherwise be lost by a patient during surgery. As a result, such patients are less likely to need red cells that are not their own in high-blood-loss surgeries.

In recent years, the company has followed this business model vision to address growing shortages of donated blood components. One solution was to offer a new intraoperative salvage device that can be used in a broader range of surgeries for patients to receive their own blood products. Another solution has come from introducing systems that allow blood centers to collect multiple units of needed blood components from a single blood donation without harm to the donor. With the new blood donation technology, costs are reduced, safety can be improved, and donors get the satisfaction of helping more people

There are many stakeholders involved with Haemonetics technology, including the patient, the patients family and friends, the hospital, blood donors, or other patients needing blood. For each of these, there is a clear benefit from a business model that makes safe and economical blood components available when needed.

Third, the best business models also seek to equitably share the economic benefits they generate with all stakeholders. Doing so creates a trust that permits people with otherwise widely differing interests to want to protect and support the business model.

Timberland is a good example of this approach. The footwear and apparel company sees its role as serving its stakeholders, and shares that perspective visibly and persuasively. Jeff Swartz, the companys third CEO from the founding family, puts it this way. Doing good and doing well are linked.

He sees customers and consumers not as passive recipients of what the company provides but as citizens with a stake in the company who should be given every opportunity to tell what they want. Employees are not hired hands to be ordered around, but paid volunteers who come to work because they believe in what the company is doing. As part of this ethic, the company provides 40 paid hours of time a year for employees to do volunteer work. They apply this time to projects they care about.

Suppliers have to meet standards of quality on the products, and how they produce them. For example, Timberland wants to be sure that its products are not produced by child labor. Shareholders should get good financial results and the satisfaction of owning a stake in a company whose values they can be proud of. Mr. Swartz also sees his role as bringing the community into the company.

As two examples, Timberland provides day care on premises and also is a national supporter of City Year, a national youth service organization located in 13 cities around the United States. Many Timberland employees also work on City Year projects.

Company-sponsored volunteerism goes in so many directions, that Mr. Swartz doesnt even try to keep track of all the activities it supports. While many other companies espouse these kinds of positive values, Timberland makes sure there is no mistake about its intent in order to be sure that resources its fine business model creates are shared fairly.

Fourth, the companys business model would take a competitor many years to duplicate or exceed by any means currently available or potentially possible. In a world where competitive leads seem to be getting shorter and shorter, this sounds impossible. But the best business models have this core characteristic.

Invacare is a good example of this approach. The company started as a manufacturer of wheelchairs and expanded its business model to become the most efficient and easy-to-work-with, high-quality provider of almost everything you need when you go home from the hospital.

By combining product superiority and diversity with low costs in manufacturing and distribution through home medical equipment (HME) providers, the companys business model could only be displaced by exceeding each element simultaneously. The companys business model advantages have become so significant that other companies are hiring Invacare to handle their distribution. Each time that happens, the potential to overtake the Invacare business model is reduced.

To further increase its advantages, Invacare is starting to build a consumer brand image to create further preference for its offerings. Since many of these products are reimbursed by health insurance and Medicare, forms handling and interaction with health care providers are significant challenges that HME providers service well.

Having the HME provider as a customer lets Invacare build on the customers location advantages as well. Invacare has established a Web site to direct inquires to these stores in order to make them more successful in developing consumer business.

How can you get your new business model into effectuation faster without taking a lot of unneeded risks?

Relax. While the experiments and tests are occurring, you can be thinking about the best course of study for your company.

A good place to start is to understand more about the elements that successful business models contain. Then, you can liken where you are with those patterns. The contrasts that come from this comparison will show you where more thinking can produce other ways to make progress while your tests of specific concepts are being conducted.

The most successful business concern models contain the same significant elements, and you need to think about those elements in order to look for and check on ideas for improved concern models.

First, the best business model in an industry creates many more resources for its stakeholders than it consumes itself in a ratio that is higher than what competitors offer.

Think of this as creating more financial as well as nonmonetary benefits for all those who come into contact with the company. The greater the ratio of welfare to stakeholders, the better the model.

Cytyc is a good example of such a company. As a start-up, the firm pioneered a new form of Pap smear test that is much more precise than its predecessor. If a woman has cervical genus Cancer and the disease is observed early, she can always be cured.

Previously, many women who had cervical cancer received the erroneous selective information that they did not have cervical malignant neoplastic disease when they did (and thus received no treatment) and they did have the malignant neoplastic disease when they didnt (and were scared by an incorrect test result, and may have received unneeded treatment if a reprise test solvent was also faulty). The health, economic, and psychological benefits of the improved test to the women having the tests are obvious.

The cost of treating the early stages of this cancer is also much less expensive than having the patient get worse or die. This means that the demands on insurers and health care providers are less. Those who pay for wellness insurance will also have lower premiums. The residential area also benefits by having these women live longer, healthier lives as people others care about and rely upon in personal, family, and working relationships. Those who care about the woman also benefit from avoiding worry and having to do less to help her deal with her wellness issues.

Second, each stakeholder perceives that they will benefit more by auspicious the success of this business model than by supporting any other, or by ignoring the companion which operates the best model.

When the competitive advantage among business models is very large in favor of each flow and potential stakeholder, the companys best interests get the somebody stakeholders best self-interest as well. This circumstance can reverses the usual tension among a companys stakeholders interests.

Haemonetics business model offers an example of providing a clear profit to many stakeholders. Haemonetics is a global troupe engaged in the design, manufacture and selling of automated blood processing systems. The caller developed a business model vision of fashioning safer and more economical blood components available when needed.

In the late 1980s and early 1990s, there was world(a) concern about transmitting viruses such as HIV through blood transfusions from donors. One of the technologies invented by the company, intra-operative autotransfusion, addressed this issue. Intra-operative autotransfusion allows for salvaging and washing of the red cells (a critical blood component) that would otherwise be lost by a patient during surgery. As a result, such patients are less in all likelihood to need red cells that are not their own in high-blood-loss surgeries.

In recent years, the caller has followed this business model vision to cover growing shortages of donated blood components. One solution was to offer a new intraoperative salvage device that can be used in a broader range of surgeries for patients to receive their own blood products. Another solution has come from introducing systems that allow blood centers to collect multiple units of needful blood components from a I blood donation without harm to the donor. With the new blood donation technology, costs are reduced, prophylactic can be improved, and donors get the gratification of helping more people

There are many stakeholders involved with Haemonetics technology, including the patient, the patients family and friends, the hospital, blood donors, or other patients needing blood. For each of these, there is a clear benefit from a business model that makes safe and economical blood components available when needed.

Third, the best business models also seek to equitably share the economic benefits they sire with all stakeholders. Doing so creates a trust that permits people with differently widely differing interests to want to protect and support the business sector model.

Timberland is a good example of this approach. The footwear and apparel accompany sees its role as helping its stakeholders, and shares that perspective visibly and persuasively. Jeff Swartz, the companys third CEO from the founding family, puts it this way. Doing good and doing well are linked.

He sees customers and consumers not as inactive recipients of what the accompany provides but as citizens with a stake in the companion who should be given every chance to tell what they want. Employees are not hired hands to be ordered around, but paid volunteers who come to work because they believe in what the keep company is doing. As part of this ethic, the company provides 40 paid hours of time a year for employees to do military volunteer work. They apply this time to projects they care about.

Suppliers have to meet standards of quality on the products, and how they produce them. For example, Timberland wants to be sure that its products are not produced by child labor. Shareholders should get good fiscal results and the satisfaction of owning a stake in a party whose values they can be proud of. Mr. Swartz also sees his role as delivery the residential district into the company.

As two examples, timber provides day care on premises and also is a national supporter of City Year, a national youth service organization situated in 13 cities around the United States. Many timberland employees also work on City Year projects.

Company-sponsored volunteerism goes in so many directions, that Mr. Swartz doesnt even try to keep track of all the activities it supports. While many other companies get married these kinds of prescribed values, Timberland makes sure there is no slip about its intent in order to be sure that resources its fine business model creates are shared fairly.

Fourth, the companys business concern model would take a competitor many years to duplicate or exceed by any means presently available or potentially possible. In a world where competitive leads seem to be getting shorter and shorter, this sounds impossible. But the best business sector models have this core characteristic.

Invacare is a good object lesson of this approach. The company started as a manufacturer of wheelchairs and expanded its business sector model to go the most efficient and easy-to-work-with, high-quality provider of almost everything you need when you go home from the hospital.

By combining product superiority and diversity with low costs in manufacturing and statistical distribution through home medical equipment (HME) providers, the companys stage business model could only be displaced by exceeding each factor simultaneously. The companys business model advantages have become so significant that other companies are hiring Invacare to do by their distribution. Each time that happens, the possible to overwhelm the Invacare business organization model is reduced.

To advance increase its advantages, Invacare is starting to build a consumer brand image to create further preference for its offerings. Since many of these products are reimbursed by wellness insurance policy and Medicare, forms handling and interaction with health care providers are significant challenges that HME providers service well.

Having the HME provider as a customer lets Invacare build on the customers location advantages as well. Invacare has established a Web site to verbatim inquires to these stores in order to make them more successful in developing consumer business.

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Newbies, Online Home Business, Business Opportunities, Bizopps, Passive Income Streams,

Newbies, Online Home Business, Business Opportunities, Bizopps, Passive Income Streams,
By: Carmelo Humphrey Home | Business | Home-Business

Online business opportunities or internet bizopps (short for business opportunities) are appearing everyday, and are allowing more and more people to work from the convenience and comfort of there own homes. More and more people have quit there jobs or have discovered an additional source of income by working from home. No longer does one have to commute hours and endure the many travails of working for someone.

The biggest advantage most bizopps offer are that one can be the master of his own fate (read he is his own boss). There is no one pressuring you to do more work and there is no need to be a part of long traffic, and the drudgery of 9 to 5 working. Online business opportunities are vast and varied. From affiliate marketing to simple data entry work. There is a job that will suit you and will allow you to utilise your time and knowledge of computers to the maximum. Most people who have just basic knowledge of computers have also benefited from the various bizopps that are available. There is no need to be an internet guru to benefit from online business opportunities.

There are also numerous myths that are circulating the market, regarding affiliate marketing, below is a list of some of the common myths

a) Just signing up new members is enough to earn you money

This is a common myth, which sadly has been exploited by some sites, to fool people into paying a sign up fees, such schemes are usually no good and the end result is that unless you start selling certain products or services, there is no way to make money.

b) There is actually an overnight success plan

Another common myth, there is no such thing as overnight success, not unless you are an exceptional sports person or a lottery winner. If you want over night success you are better of actually playing the lottery. Carefully read reviews of online bizopps, read the fine print over and over again, and only when you are convinced should you join such marketing plans or online business opportunities.

c) There is such a thing as an unlimited earning scheme

Watch out for sites that claim that they offer unlimited earning, any online business opportunity has its limitations and downsides, take your time don’t commit to anything too soon. It will be against the companies best interest to offer you unlimited earnings no matter how good a sales person or worker you are. If such a thing was possible you would have heard of someone who was a millionaire based purely on internet bizopps, your best bet is to keep a level head and work diligently.

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The Circle Manifesto: A New Economic Model Based On Ancient Wisdom

The Circle Manifesto: A New Economic Model Based On Ancient Wisdom
By: Marc Choyt Home |

Most businesses are structured like pyramids. People and resources are used to benefit those at the top who set policy to achieve maximum profit. This narrow focus, mandated in publicly held companies by the law of our land, has turned our basic human need for exchange into a destructive pattern.

“Consumers” slowly undermine their own wellbeing by supporting companies that function within local economies as neo-colonial entities. Money, disconnected from a place, is exported up to shareholders, leading to the fragmentation of economy and community. A few people at the top of the pyramid get very rich while we buy ten-dollar jeans at Wal-Mart and wonder where the money is for local schools.

Triangles – which make up pyramids – serve a vital function in nature (look at the tips of feathers, shark fins, waves or teeth). Triangles are about movement toward goals. But in nature, this triangular movement nurtures relationships to find a greater balance based on radical equality and interdependence: the circle.

Over the last eleven years, my wife and I have attempted to run our company based on the circle wisdom teachings of indigenous elders. We knew nothing about business when we started but we saw how it is that everything around us is alive and has a right to exist. Like fools, we sought to bring this understanding into the business world.

We noticed how decisions are based on a hierarchy of values that is often determined by societal patterns. A pyramidal business model becomes a story that is often constellated around war, competition and hierarchy. A circle-based approach, however, requires considering community and the right of all that is to exist in the center of one’s decision making. One asks, is my action going to strengthen our interdependence or not?

Over time, we came up with this definition of purpose for a business based on circle wisdom to test our decision making processes:

The purpose of a circle-based business is to benefit community through relationships that are nurtured by fair and equitable exchange. Every person inside and outside of the business is viewed as equal in their humanity.

Our initial attempt to make our company circle-based brought contradictory results. Before I went into business I was a service volunteer, monk and high school teacher. Focus on money and numbers were both corrosive and grounding to my idealism, yet as I put my house on the card table and watched our company plummet into debt, I saw how it was entirely necessary. We could not actualize many of our values because we were just trying (praying) to forge relationships (sales) that would allow us to pay the next bill.

Yet we saw how nature’s circles build prosperity and abundance. The foundation of any circle-based business is generosity toward employees. If one person takes more than their share out of the circle, you begin to become a pyramid. As soon as we began to feel some stability, we were able to implement a strong benefit package and pay ourselves.

Compensation is only one part of being circle-based. You also have to attend to how the energy flows around an organization. Ten employees means one hundred and twenty possible relationships.

A few years ago we learned how just one unhealthy, platonic relationship between two employees can create a situation that painfully impacts the entire organization. Emotional and spiritual well being of everyone in the circle viewed equally in their humanity requires a lot of vigilance and skill from all who form the company.

Circle-based business is a paradigm shift for everyone involved. The employee says, “You’re the boss,” which is correct. But a circle is strengthened by everyone taking responsibility for their arc. We avoid top-down unilateral decisions, and empower everyone to hold their own arc so that we can focus, as business leaders responsible for the flow of the whole, on prosperity for everyone.

Studies in the Harvard Business Review1 back the notion of how attending to the well being of employees is a best business practice. Increased commitment from employees who love their job can lead to a 57% increase in an employees’ discretionary effort, a 20% increase in individual productivity and an 87% reduction in the desire to leave. (We’ve had three people quit in ten years.) The greatest indicator of business success is repeat business that comes from customer satisfaction. The greatest indicator of customer satisfaction is employee investment.

From a strong inner company circle, the circle-based businesses must also serve the greater Circle of Life, which is where this model becomes even more challenging.

Despite my efforts to be as green as we can, my business has a negative impact simply because our industry is not yet adequately supported by a market and supply chain. I finally have a supplier for recycled gold and silver, but can I afford to print our catalog on recycled paper when it doubles our cost? Not this year.

Since it costs more money to run a business in a way that serves the greatest good, the circle-based approach is ultimately a “spiritual” endeavor. Survival (ideally prosperity…) must be weighed against fair and equitable exchange. One lives in ethical gray areas. Finding the balance between money, humanity and sustainability becomes a kind of koan. Yet breaking free of current internal and external structures that no longer serve the common good can free a huge amount of human spiritual potential.

Ultimately, economy is either leading toward supportive interconnection, or toward our continued fragmentation. If we are to survive, we must begin to see how giving back is the only way to generating prosperity and abundance for all.

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Business Development And The Measured Steps To Success

Business Development And The Measured Steps To Success
By: Jack Deal Home | Business

Most businesses start with an idea that involves doing something for a profit. When one does something for a profit, technically one is in business.

Someone figures how to do something better, quicker, cheaper, faster. The basics or underlying dynamics of how this business idea works is called the business model. A more explicit and detailed description of the model is called a business plan.

The first step is the model and it is the most crucial. If the business model cannot generate profitability, it won’t work. If the assumptions of the model are wrong, it won’t work. If the model is incomplete, it won’t work. If the model needs financing and has no way to get it, it won’t work. And so on.

So getting this first step right is imperative. Get it wrong and the business goes in the wrong direction and probably all is for naught.

On the other hand, if all goes well and business plan looks viable, the new venture is off. Most businesses start small with the owners working and maybe adding an employee when needed. As a problem is encountered, it is solved and the quest continues.

Layer upon layer of solutions and process are thrown together and at some point it becomes obvious it is a mish mash and there has to be a better way without reinventing the wheel. And there is.

It’s called best practices and it means the best way of doing something. It’s what successful businesses know and do making them more efficient and effective in delivering value. Those businesses that do things less efficiently and effectively deliver less value, are less competitive and eventually go out of business. They don’t get to play the game.

Best practices is sometimes also known as infrastructure and it simply is all the support systems and processes needed to carry out the company mission and business plan. These can include communications, technology, software, accounting, human resources, sales and marketing, strategy, etc.

Businesses that do their homework well and join together their business model with good infrastructure and best practices create the potential to grow. It’s as if getting the business model and the infrastructure right is a ticket to play in the big game. Whether you agree or not, those are the facts.

But also note that nothing is guaranteed. Nor implied. Simply being in a position to grow does not mean growth and success. But at least at this point one gets a ticket to play the game.

Conversely,if a business does not get the model and infrastructure right it cannot grow and generate significant assets. If profitable, it will only be marginally so.

This company does not get to play the game. If your company is stuck in the business model or infrastructure black hole and can’t get out it’s probably best to consider downsizing and reducing costs. Stay with quality and there will be some margin. Not much growth potential, but hopefully some margin. Or look for a job.

But if you and your model are savvy enough to get to this point you will then want to develop your growth strategy.

The emphasis on growth almost always focuses on marketing and human resources.

In the marketing strategy there has to be a feedback loop to let management know what customers and clients are thinking. This feedback loop creates the basis for innovation and delivering more value.

In human resources the issue is productivity and how to reward it.

Relax. All of this is really not so complicated.

What is deceptive is how much perseverance it requires to execute a business plan. The sheer volume of problems and obstacles makes it more of an endurance test than an obstacle test.

But not to worry. Breaking each problem down into components and working on each component is a very quick way to get results. Piece by piece.

It is especially important to manage your cash flow in this growth mode. Watch the receivables. Many is the company whose growth was out of sight but poor cash flow did them in. If you are on a path to fast growth, be sure your projections include end of month cash balances.

It is also helpful to run through some scenario plans. What is the best case and worst case scenario for your strategy? Usually the end result is somewhere in the middle. Usually. Often by looking at scenarios you gain insight so it is well worth the effort.

Managing this growth you have created is the next stage. It can be fun, exciting, profitable, frustrating, impossible and fruitless; and sometimes all at once. Managing growth is a series of juggling acts that attempt to keep many balls up in the air at once.

As unappealing as it sometimes seems growth is where it’s at in business. Growth is good. Growth is fun.

How long until your company can reach the growth stage?

Some newer tech and Internet companies can mature to a growth stage in several years. Older, traditional service businesses may take a decade or more in the trenches before hitting a solid growth stage.

But even with growth in the end there is always the end. The owner that anticipates how she would like to step out of the business is the one that is not surprised in the end at what happens. By not focusing on your outcome from the beginning you simply take your chances. There is no middle ground.

As the competition thins, strategy is where the real competitors duke it out. Those companies that align their model,infrastructure and strategy in place hit the market sweet spot. Their growth can be exponential. It is not only possible but probable since they have done the basics well. They have the foundation. If their business model is solid they are off to the races. It becomes a matter of executing the business plan.

At any rate, there you have it. It doesn’t always work this way but it usually does. Each business is unique and circumstances may vary. This is the way the percentages break out. Like or not, those are the odds.

First find out where you are. Then what do you want, and then how do you get from here to there?

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A Brief Guide To Online Finance Degrees

Online degrees are gaining popularity because they are flexible, accessible and convenient. However, if you plan on getting a finance degree online you need to make sure that Moreover they are also acknowledged by most of the employers provided they are pursued from accredited online universities. You can opt for various levels of degree programs as well as certification programs completely online without discontinuing your existing job.

Types of Online Finance Degrees

Different levels of degreesin finance can be pursued online; this includes undergraduate, bachelor’s, master’s as well as Doctorate Degree in Finance. You can even consider various types of specialization to develop niche careers. Some online colleges even offer a combination of accounting and finance degrees.

Some of the most popularOnline Finance Degrees are:

>Online Finance MBA Programs
>Online Finance Certificate Programs
>Bachelor of Science Finance
>Bachelor of Business Administration Finance
>Master of Science in Finance
>Master of Science in International Finance

Choosing an Online Finance Degree

If you are interested in a specific career in the field of finance, you can consider different levels and types of Online Degrees in Finance. They can help you to develop lucrative careers like finance analyst, finance manager or budget manager. However, while choosing an Online Finance Degree at any level, you should look for credible degree programs. You should conduct adequate research and develop a list of accredited online colleges which ensures quality online education.

You can find out about its accreditation from various accredited agencies which are recognized by the U.S. Department of Education. With these accredited degree programs, you can develop a lucrative career in the field of finance. This can enable you to get jobs in various work settings like private banking, financial planning, insurance or investment management.

Curriculum for Online Finance Degrees

The curriculum for an Online Finance Degree is one that can help you to develop a strong foundation in the field by gaining business skills along with gaining knowledge about different areas related to the field like finance, marketing, management, economics and statistics. You can also get in-depth understanding about various aspects of the field like risk management, related concepts, different strategies, investment and banking and financial markets.

The basic curriculum for different types of Online Degrees in Finance includes subjects like:

Financial and Intermediate Accounting
Cost Management
>Business and Finance
>Mathematics and Statistics
>Money Markets
>Commercial Finance
>Fiscal Accounting
>Financial Administration
>Insurance
>Global and Domestic Business Finance
>Introduction to Economics
>Investment Banking

An Online Finance Degree offers a lot of benefits and can help you to get experience as well as pursue higher education without leaving your existing jobs or compromising on other family commitments. You can pursue it at your own schedule and pace and can take it up from anywhere and at anytime.

In these times of uncertainty, a finance degree pursued from a top university is one of those few careers that still promise a good salary and a prestigious job.

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