Five business models, which one is suitable for you?
Mode 1: network entrepreneurship
The Internet has changed people's lives and provided a brand-new way of starting a business. Network entrepreneurship is different from traditional entrepreneurship, which does not need to start from scratch, but uses ready-made network resources. At present, there are two main forms of online entrepreneurship: opening online stores and registering online stores; Join online, operate in the form of e-commerce website stores, and use the source and sales channels of the parent website.
Mode 2: Join the business.
Sharing brand gold mine, business know-how and resource support, franchise chain has become a popular new way of starting a business with these advantages. At present, franchise chain has the forms of direct operation, franchise and joining. The investment amount varies from 6,000 yuan to 2.5 million yuan according to the types of goods, store requirements and technical equipment, which can meet the different needs of entrepreneurs.
Mode 3: Part-time Entrepreneurship
After the policy of investing in shares came out, individual entrepreneurship had another choice. Especially for white-collar workers, if they are lively and have money and leisure, they want to make money; I don't want to give up my present job. Being a part-time boss should be the best choice.
Mode 4: Team Entrepreneurship
Entrepreneurship is no longer simply the pursuit of individual heroism, and the success probability of team entrepreneurship is much higher than that of individual entrepreneurship. An entrepreneurial team with complementary advantages in R&D, technology, market and financing is a magic weapon for entrepreneurial success, especially for high-tech entrepreneurial enterprises.
Mode 5: Conceptual Entrepreneurship
Conceptual entrepreneurship, as its name implies, is to be creative, have ideas and have ideas to start a business. Of course, these entrepreneurial ideas must be unconventional, at least in the industry or field they intend to enter. Only in this way can we seize the market opportunity and attract the attention of venture capitalists. At the same time, these unconventional ideas must be operable, not impossible.
The best business model in the world
The last chapter mentioned three basic elements of starting a business: people, things and money. If you choose correctly, the road to entrepreneurship may be smooth sailing, even if you can't ride the wind and waves, at least get twice the result with half the effort. However, these three points are only the elements of starting a business. In order to make the three functions fit each other, we must also have another indispensable condition-a reasonable business model-a method of integrating the three elements of entrepreneurship with other business resources.
Cai Chongxin gave up his job as a European investment bank and went to Hangzhou with his pregnant wife. When boating with Ma Yun in the West Lake, Ma Yun almost jumped into the lake. At that time, Ma Yun had nothing and Alibaba had "nothing", at least in today's capital investment market. There is no system, no standard, and no prospect at your fingertips. Ma Yun, who is full of passion and ambition, leads his "Eighteen Arhats" to run around the Internet world like a wandering soldier. At that time, Cai Chongxin, with an annual salary of HK$ 3 million, finally persuaded his wife and family, and most importantly, persuaded himself who had been calm and rational, put aside all his pride in the past, and came to Ma Yun to receive 500 yuan's monthly salary.
In fact, Cai Chongxin is interested in the "things" chosen by Ma Yun, the broad development prospect of the Internet, and more specifically, the business model of Alibaba B2B. At that time, the Internet in China was very lively. Ding Lei is Netease, Zhang Chaoyang is Sohu, Chen Tianqiao is Shanda, Ma is Tencent, and Baidu ... The business model in the Internet field focuses on news portals, search engines and instant messaging, while Alibaba is doing e-commerce, and the prospects are not optimistic. However, Cai Chongxin is optimistic about its prospects. Cloud, he is convinced that B2B will become a trend and advantage, which will set off a huge wave in China's business community. We all know the following story. Alibaba has been financing, developing and growing, and making great strides all the way. It has been extended to all fields of e-commerce, involving B2C, C2C and other business models.
B2B, B2C, C2C, etc. These business models involving the Internet are the new contents of the traditional business operation model. We can see the change, move commodity information to the network, display, publicize and sell it to potential partners and consumers in such a virtual space, win each other's goodwill and reach a deal. Once this kind of transaction forms scale and habit, it is difficult to reverse: How many enterprises are used to publishing and querying business information on B2B platform? Simply put, how many people don't search for similar products online before shopping, such as price and quality?
The development of human society is sometimes slow and sometimes fast, so is the development of business model. From bartering after the appearance of commercial rudiments, it is now varied and constantly refurbished, and it is constantly updated and upgraded like a weapon used in war. In the era of cold weapons, soldiers fought with swords and halberds, and people invented bows and arrows and slings in order to attack long-range targets. In modern times, these weapons have been hard to find, replaced by firearms, which is an advanced high-tech weapon. However, the nature of war has not changed for thousands of years, just as the nature of business has not changed. Understanding weapons can restore the war and historical features of an era, and understanding and studying business models can not only clarify the history and context of business development, but also find laws in the big economic environment and grasp the trend of business development.
So what is the business model?
In this era of frequent investment and entrepreneurship, both fledgling entrepreneurs, successful entrepreneurs and low-key savvy investors like to talk about "business model", as if the word itself has unlimited value and wealth. If you ask someone with such a question, you may encounter a full face of disdain and big eyes, and then you will proudly hum a sentence from your nostrils: You don't even know what the business model is, and you dare to talk to me about starting a business? If you can avoid the supercilious look and ridicule and keep asking questions, maybe the other person can't tell you why.
Although the word business model is widely known now, the concept has not appeared for a long time, and there are different opinions on its definition. There is no widely recognized standard version, and most people's understanding of business model is limited to "what to do" and "how to make a profit".
In fact, the business model can be simply summarized as the ways and means for the company to make money. Since it is a business model, it involves business activities. Therefore, all direct or potential profit-making links in business activities will have corresponding business models.
Clayton Clayton christensen, a professor at Harvard Business School, proposed the concept of "disruptive technology". His theory includes the innovation and subversion of business model, and his summary of business model is quite refined: business model is a system of how to create and transmit customer value and company value.
In short, the business model is a way for an industry and an enterprise to create value. The value here includes two aspects. The first is customer value, that is, what the enterprise can bring to customers and customers; The second is commercial value, that is, how to make a profit and create value for its own development. These two points are indispensable elements in a business model, and other elements are needed to realize customer value and enterprise value, which are simply key resources and key processes. These four elements are interrelated and work together to form a complete system, and every participant in the system can get benefits in some way.
When we talk about business models, what do we pay attention to?
The first is customer value. The first of the three elements of entrepreneurship is "people". We used to say "manager", which means that from the inside of the enterprise, leaders maintain a unique vision in selecting people, employing people and retaining people, while the customers we are talking about now are another meaning of this element. Behind the product is demand. Excellent leaders can accurately judge the needs of customers and adjust their production scale and management mode according to these needs. If you don't even know who your target customers are and what customers need, who will you sell your products to, and how will your enterprise make a profit?
Nowadays, people are familiar with the modern shopping center which integrates shopping, dining and entertainment. This business model fully considers customer value: consumers only need to go to one place, not only to shop, eat, watch movies and exercise, but also to save time and cost. Different industries concentrated in shopping malls can win each other. In addition to the customer groups they attract, the cost of contacting other customer groups is almost zero, and these people become potential consumers. When you are tired of shopping, you always have to eat a meal, watch a Hollywood blockbuster after eating, and watch movies with popcorn and snacks ... These activities don't need to go out of the mall. In this way, while creating value for customers, the mall itself has formed a relatively closed space, retaining consumers to the maximum extent, and effectively protecting the interests of the mall.
Everyone is familiar with Starbucks coffee. The company is headquartered in the United States and has chain stores all over the world. But have you ever heard of the coffee dessert brand 85 degrees C in Taiwan Province Province? Maybe not, but if you knew that this little-known catering company beat Starbucks, would you immediately look at it with special respect? Since its inception, Starbucks has been regarded as an opponent. Starbucks entered the market in Taiwan Province Province two years earlier and developed 2 1 1 branches. At 85℃, all its stores were opened next to Starbucks, and the latecomers came from behind. Soon, it has 345 branches, which far exceeds Starbucks in market share, profitability and total coffee sold, successfully challenging Starbucks' coffee culture and leading position, and now it has many branches.
In fact, coffee shops have become a difficult industry to enter, both at home and abroad. Not to mention that the market is saturated, wolves like Starbucks can survive. The success of the 85-degree C surprise attack is inseparable from its unique business model. If we pursue the source of its business model, we should start with the entrepreneurial concept of founder Wu. One day in 2003, he had afternoon tea in a five-star hotel and suddenly had a flash of inspiration. Can he bring this taste experience to the general public? For this reason, he searched all the senior pastry chefs in Taiwan Province Province, and after many discussions, he worked out his own unique route, so he also had a golden signboard at the initial stage of 85 degrees C: five-star flavor. It can be seen that from the initial conception, Wu focused on customers and thought about problems from their perspective. Good quality and low price is the constant pursuit of consumers, and 85 degrees C directly regards this pursuit as its own pursuit. This can also be seen from its subsequent development and positioning. Wu didn't take coffee as the main theme of 85 degrees C, but chose a cake with more flavor. There is a simple reason. Not everyone can taste the quality of coffee, but you can tell whether the cake is delicious or not in one bite. 85 degrees C insists on using the best ingredients and hiring the most experienced pastry chefs to create the best quality and delicious cakes. The same is true for its positioning and promotion of coffee. The same cost, the same quality, the price is only one third of Starbucks, and the geographical proximity directly pushes away Starbucks' market and consumers.
Customer value is the most important in the 85-degree C business model. First of all, it will open its own store next to Starbucks Bay. Apart from the opportunity to compete with Starbucks for customers, the most important thing is to give people a feeling that the taste and grade of Starbucks are comparable. The "vanity" of customers will be satisfied in a small cake and a small cup of coffee. Secondly, hidden under the luxurious appearance of high-rise buildings are approachable prices and more popular positioning, which are cheap but not low-end. 85 degrees C truly restores the essence of coffee as a drink, and everyone has the opportunity to taste and feel high quality without spending most of the premium; At the same time, the 85-degree C is under the signboard of coffee, focusing on cakes. It is also based on the psychology of consumers. When people buy cakes, they can give away coffee for free. When people love the taste of coffee, they will accept the coffee itself.
Only by fully considering the value of customers can we enter the hearts of customers, and 85 degrees C takes into account the needs and psychological characteristics of middle and low-level consumers, so as to occupy the most market share steadily in just two years.
After the customer value is realized, the value of the enterprise will naturally be realized. People have always thought that the profit of high-end coffee like Starbucks is not high, and the low-end coffee will not be much higher, but the success of 85°C proves this assertion is undoubtedly wrong. Low-end consumption is the capital that can beat coffee chain brands at 85℃.
In addition, the business model has two elements: key resources and key processes, which are as important as customer value and enterprise value, and are also practical parts of the successful operation of this business model. Take 85 degrees C as an example. While taking the route of "luxury parity", it strictly controls the operation mode of the whole operation system to ensure that low prices will not make sentimental enterprises lose money.
First of all, the products with 85 degrees C are more comprehensive, and the profit of cake is higher than that of coffee, but free or promotional coffee can attract people to shop and spend. Selling cakes at this time can smooth out the profit of free coffee. Secondly, 85 degrees C is a way to reduce costs by establishing economies of scale, which is popularly called "small profits but quick turnover". It can be said that the goal of getting twice the result with half the effort can be achieved by quickly opening branches, occupying the market, greatly reducing costs and enhancing brand image through equity participation. At the same time, 85-degree C chose to trade directly with the importer of raw materials, thus eliminating the intermediate business links, thus controlling the cost from the source. In addition, it is worth mentioning that 85 degrees C not only attracts and hires the best five-star chefs in the form of shares, but also hires the deputy store managers of KFC stores all over the country as store managers with high salaries. Their rich experience and enthusiasm after being appreciated are also a fortune for 85 degrees C.
Make full use of all the resources owned by the enterprise, operate rationally, maximize the value of customers and enterprises, and each link can run smoothly to form a complete business model.
Best business model in 2020
As an entrepreneur, you don't need to be a successful wizard. But you need to pay enough attention to financial management, and you are willing to take the time to understand which indicators are the most important to the business, and how to measure and improve these indicators in the long run.
1. Identify the responsible person
Although the sparrow is small and complete, don't think that your company is small, so you don't pay attention to financial work casually.
You need someone to take charge of funds and financial management. This person does not have to be full-time, but he must have such a position. Whether it is a big company or a street stall, financial personnel are very important.
Step 2 set up an account
If it is the first time to start a business, there must be a lot of things to do and you will be very anxious. Many entrepreneurs think that establishing an account is not as important as making a business plan and communicating with customers. However, it is important to keep these records every month, so as not to be overwhelmed when it is really needed.
When you want to file a tax return or submit a report to the bank, it would be terrible if you didn't have the previous records and relevant information.
Therefore, instead of wasting time and planning later, it is better to make relevant preparations from the first day. I suggest that you can carry out simple account management in the form of manual account in the first few months.
If you don't have time to do this, you can hire a bookkeeper. Then, your information will become more and more complicated, and you need to hire an accountant when filing tax returns. Of course, if you can handle this yourself, there is no need to pay for these professionals.
3. Manage your cash flow well
There are three reasons why a company goes bankrupt: 1. The capital turnover is ineffective. 2. The cash flow is ineffective. 3. The cash flow is ineffective. To run a small business, cash flow is the most important financial indicator that you must learn to manage first!
Generally speaking, you need to know where your money comes from and where it goes. If possible, it is very important for small entrepreneurs to make a budget carefully and calculate the expenditure for next month.
4. Profit is not the only criterion to measure operation.
For first-time entrepreneurs, profit is not the best indicator to predict the actual operation of the company. In fact, profit indicators are often disappointing. Matt RiSSEll, CEO of TSheets, said: "A new company or a fast-growing enterprise will burn money quickly."
If business is booming, you will find that your cash reserves are consumed much faster than expected. Your profit may be low, but it may be a good thing, because the business is growing very rapidly. On the contrary, by calculating the growth rate of the company's business, we can know whether the company is developing on the right path.
Remember, however, profit is still the ultimate financial goal of the company.
5 inventory turnover rate
The longer the goods stay on the company's shelves, the lower the rate of return on these assets, and the more likely the prices of these stocks will fall. That's why you want to keep your inventory flowing or "circulating".
Pay attention to the products that have not been moved for a long time in the warehouse and take timely measures to eliminate the inventory. You need the most adequate capital flow to support the operation of the company.
6. Separation of public and private property.
Nowadays, many small companies are run by entrepreneurs alone, so there will be a problem: finance is not public or private.
Originally, the cash flow and profit level of enterprises were in an ideal state, but the high consumption of individuals would seriously affect the financial situation of enterprises. At the same time, although it is "rotten meat in the pot", it is difficult for small companies to develop normally because of the distinction between public and private finances.
7. Prevent small expenditures from turning into large expenditures.
In a small company, many small expenses add up to a big one. This is especially true when you allow your employees to order products, inventory and office supplies directly without your approval.
Of course, for the development of the store, you have to let your employees do some work directly, including some purchasing work.
However, if employees spend hundreds of dollars here and hundreds of dollars there, it will add up to thousands of dollars.
Would you like to spend thousands of dollars on these projects together? If the answer is no, you need to consider whether it is worth spending more than a certain amount of money from the comprehensive impact of all these projects on small companies, rather than just looking at separate and unrelated purchases.
8. Reasonably distinguish expenditures
At the beginning of the company's business, it is necessary to strictly control the expenses, such as high-end offices and expensive marketing activities that cannot be immediate. Such expenses can be put on hold temporarily, and some high-priced software can also find alternatives.
However, a business plan, a market survey, a marketing activity with clear goals and obvious effects, and a good tax financial consultant can't save money by sharpening the knife and cutting wood by mistake.
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