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What Is A Business Model And Which One Is The Right One For A Business ?

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When people use the term   business model , they often mean “how the business earns money”. To understand the implications of this question deeper, however, it’s important to make the distinction between   business model   and   revenue model : A revenue model is a narrow answer to that question. The revenue model is the combination of all your revenue streams. It’s concerned narrowly with the area of your business that involves clients transferring money to your organization. The business model is a more broad term. It involves the revenue model, but it’s also concerned with other aspects of the business like e.g. the cost structure.  For example, while the revenue model of a traditional retailer is concerned only with customer transactions, the business model is concerned with suppliers, locations, marketing, employees, etc. Because of this, simply choosing a business model for a business is somewhat unrealistic. The innovative nature of the venture means that...

How Brands Create Value

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  Brand value is a cumulative result of sales volume, equity, audience size, and the brandʼs market potential. But unlike other assets like stocks, bonds, commodities and real estate, there is no active market in brands that would provide comparable values. The main issue with brand valuations is their arbitrary measurement and few agreed-upon systems and processes for evaluating brand assets. Brands are a company’s most valu e d asset, yet there is not universally accepted method of measuring that value. The only time you can be sure of the value of your brand is just after you have sold it. At the same time, well-managed brands have extraordinary economic value. “Founders die. Factories burn down. Technology becomes obsolete. The brand is the only sound foundation on which business leaders can build enduring, profitable growth. Brands create value on macro and micro levels. On a macro level, brands create value by participating in the economy. On the micro level, brands create va...