9 Online business models

One of the most popular questions for startups online (and even major ones like Twitter and Facebook) is ‘what is your business model’. Sometimes the question is sincere but often it is voiced more like an accusation: what are you exactly trying to acomplish?

The interesting thing about business models is that there is not much magic involved. Business models are pretty much set and all you have to do really is apply one of them to your business. The hard part is choosing the right one for you. You can choose one or the combination of couple of them.

So here comes the list:

Brokerage
Brokers are market-makers: they bring buyers and sellers together and facilitate transactions.

Advertising
The web advertising model is an extension of the traditional media broadcast model. The broadcaster, in this case, a web site, provides content (usually, but not necessarily, for free) and services (like email, IM, blogs) mixed with advertising messages in the form of banner ads.

Infomediary
Independently collected data about producers and their products are useful to consumers when considering a purchase. Some firms function as infomediaries (information intermediaries) assisting buyers and/or sellers understand a given market.

Merchant
Wholesalers and retailers of goods and services. Sales may be made based on list prices or through auction.

Manufacturer (Direct)
The manufacturer or “direct model”, it is predicated on the power of the web to allow a manufacturer (i.e., a company that creates a product or service) to reach buyers directly and thereby compress the distribution channel.

Affiliate
In contrast to the generalized portal, which seeks to drive a high volume of traffic to one site, the affiliate model, provides purchase opportunities wherever people may be surfing. It does this by offering financial incentives (in the form of a percentage of revenue) to affiliated partner sites.

Community
The viability of the community model is based on user loyalty. Users have a high investment in both time and emotion. Revenue can be based on the sale of ancillary products and services or voluntary contributions; or revenue may be tied to contextual advertising and subscriptions for premium services.

Subscription
Users are charged a periodic – daily, monthly or annual – fee to subscribe to a service.

Utility
The utility or “on-demand” model is based on metering usage, or a “pay as you go” approach.

You can combine any of these models and vary slightly to make new models. But this is a nice list to get started with.

BCG Matrix

The BCG matrix (also known as B-Box, BCG analysis, BCG-matrix, Boston Box, Boston Matrix, Boston Consulting Group analysis, portfolio diagram) is a chart, or matrix, created by Bruce Henderson for the Boston Consulting Group in 1970 as a tool for corporations that will help them analyze their business units or products. By using the BCG matrix it will help companies to allocate their resources and is often used as an analytical tool in brands marketing, product management, strategic management and portfolio analysis. 

In order to use the chart the analyst creates a scatter graph so as to rank the business units or products based on their market share and growth rates. There are four main categories.

1. Cash cows are units or products with high market share but slow growth. These are usually the products that generate a lot of revenue while not demanding much in terms of their maintenance for the company. They are regarded as boring, but every company would be happy to have a number of them. Their only purpose is to be "milked" with as little investment into them as possible. 
2. Dogs, or sometimes called pets, are products with low market share in a mature, slow growing market. They usually only "break even", generating enough cash to keep the current market share. It is a good line of products in that it has a social benefit of providing a jobs and possible synergies with other products, but generally they are considered worthless since there is no extra revenue generated by them. Most of the companies would prefer selling them off.
3. Question marks, or problem children, are rapid growers and in doing so consumer large amounts of cash. They have low market share and do not generate much in return. The end result is large net cash consumption. They have a potential to become a star, and eventually cash cow. If it doesn't suceed in becoming a market leader after some time (usually measured in years) it will slide down to a rank of dog. Question marks have to be analyzed carefully so as to determine are they worth the investement.
4. Stars are products with high market shares in a fast growing industry. Everybody hopes that a star will be a cash cow. Sustaining the high market share may require further investments, but it just might be worth it in order to maintain the high market share. When the growth slows down, if they had been able to maintain the highest market share, they become cash cows, or they become dogs if they have a low market share. 

As a particular industry matures and its growth slows, all business units become either cash cows or dogs. The natural cycle for most business units is that they start as question marks, then turn into stars. Eventually the market stops growing thus the business unit becomes a cash cow. At the end of the cycle the cash cow turns into a dog.

The overall goal of this ranking was to help corporate analysts decide which of their business units to fund, and how much; and which units to sell.

Best Business to start in 2013.

On your behalf I have been surfing the Youtube a bit and found this nice video. It might help you with an idea of what to do when starting your home business. I give it thumbs up!

Top 10 Business Books of 2012

There were many good business books in 2012. You could learn a lot on how to improve your organization or further your career. So I decided to provide you with couple of books that I thought were worth reading. Here comes the list.

1. Nine Minutes on Monday
By James Robbins
(McGraw-Hill)

Mr. Robbins outlines nine core needs people hold, and then sets out nine questions to ask yourself every Monday morning that will reveal ways you can help your staff meet those needs in the coming week. The questions include: Whom will I give feedback to this week; whom will I reward or recognize this week; how can I promote a feeling of autonomy in one employee this week; and how can I help someone grow this week?

2. The Four Disciplines of Execution
By Chris McChesney, Sean Covey, and Jim Huling
(Free Press)
Three FranklinCovey consultants report on the success they had with their four-step process for managing the behavioural changes in staff that allows change to occur. Focusing on the most vital aspect of the change is crucial, along with creating a cadence of accountability so that the change effort doesn’t get sidetracked by the whirlwind. That’s highlighted by holding a single, un-cancellable weekly meeting, in which everyone reports on how they fared in the past week on commitments they made toward the change effort and what they will do next week.

3. Understanding Michael Porter
By Joan Magretta
(Harvard Business School Press)
Harvard Professor Michael Porter is the most widely cited strategy guru, but his ideas are often misunderstood or only partially comprehended because of their complexity. In this book, Ms. Magretta, who worked with him, presents a surprisingly clear summary of his work, making matters such as competitive advantage and “five forces” theory easier to understand and apply properly.

4. How to be Exceptional
By John Zenger, Joseph Folkman, Robert Sherwin Jr. and Barbara Steel
(McGraw-Hill)
Four consultants offer compelling evidence for focusing on your strengths rather than weaknesses (except when the weakness can prove to be a fatal flaw) and then explain how to work effectively on your strengths, a course of action which is not necessarily obvious.

5. So Good They Can’t Ignore You
By Cal Newport
(Business Plus)
The blogger and assistant professor of computing science at Georgetown University, writing in the research-and-anecdote style of popular writer Malcolm Gladwell, successfully challenges the myth that the key to success is to follow your passion. Instead he offers four linked, alternative rules, including becoming a craftsman so adept at what you do that people can’t ignore you.

6. Talk, Inc.
By Boris Groysberg and Michael Slind
(Harvard Business Review Press)
The authors, a Harvard professor and communications professional, studied communications in modern organizations and found the top-down style has been replaced by two-way conversations between leaders and the troops. Even written communications, such as a CEO’s blog, can no longer be impersonal and directive but instead must be personal and more conversational. They also explain four elements that can help you be effective with this new approach.

7. The Advantage
By Patrick Lencioni
(Jossey-Bass)
The masterful writer of business fables switches to a straight ahead, non-fiction approach, bringing together his many practical ideas under the rubric of making your organization smart and healthy. You probably have heard some of his ideas before, but it’s refreshing to see them stitched together in one intelligent leadership manual. I have read all his books and found this a helpful summary, with additional ideas to ponder.

8. Who’s in the Room?
By Bob Frisch
(Jossey-Bass)
The Massachusetts-based consultant debunks the notion that top corporate decisions are made by the senior executive team, and shows how it’s usually a small “kitchen cabinet” team of advisers with the CEO who thrash through the possibilities and come to key conclusions. He argues that this is an effective system, and sets out some ideas for CEOs to more profitably utilize their senior teams and other decision-making teams.

9. The Primes
By Chris McGoff
(John Wiley)
This quirky offering by a Washington, D.C., consultant sets out 46 practical and provocative rules for effective management that don’t add up to a leadership system but certainly get you thinking. It’s sweet reading, with short chapters and powerful graphics making the ideas clear.

10. Hannibal and Me
By Andreas Kluth
(Riverhead)
This extended essay by an Economist writer uses the story of Hannibal as a leaping off point to explore the trajectory of our careers and life. It’s an absorbing, well-written, insightful journey into the past that makes today clearer.

Note: If you click on each book title it will take you to Harvey Schachter's review of that particular book whom I thank for the job he did.

Courier Delivery Services

Courier Delivery has been the pulse of communication since time immemorial. Even though the internet has taken up the bulk of mail communication process, courier still plays an active role when it comes to delivering tangible goods around the world with reliability and express speed that only courier companies can provide.

The process of courier is quite complicated and requires several components within the company to perform flawlessly and reliably. Right from the point of pick-up till the delivery, an item passes through several processes that are known only to those inside the business and which hardly matter to the end users. All that matters is the end delivery and peace of mind.

What to Look For In a Courier Service Provider?

Once you decide to use a courier service you have to ensure that you know what options are available and what not. First and the most obvious is the presence of the courier company at the other end. Mostly, smaller companies have collaborations with larger ones to deliver items. However this is not always reliable. A company with a dedicated team of professionals handling the entire process independently is a much better one.

Second comes the pricing. Tariffs vary across companies, make sure that as a customer you look for all available alternatives that provide the speed and reliability at a cheap price. Never choose a costlier one when you can have the same from a more economical courier delivery company.

Then comes the ease of pick up and drop. Most courier companies have local presence in the form of depots and pick up points; the best among them also provide pick up right from your doorstep if you choose. At the other end, the recipient should not be inconvenienced for the sake of delivery. He or she needs to be intimated well ahead about the time of delivery so that he or she can make the necessary arrangements to be present at the time of time of delivery. This commitment and care can be expected only from the best.

What Are The Tariffs?

As already mentioned, this aspect is variable and you as a customer should do your research to know about the cheapest available. Talk to your friends and neighbours if you are completely new to this. Most companies will be happy to revert to your queries regarding price options. You could also visit their websites and get a good idea about the several schemes on offer. Requesting a quote can be very helpful in getting the clear picture of the process.

Finally, if you are availing any of the internet related service, whether it be payment or delivery make sure that the company is accredited and authentic.

Article Source:
http://www.articlecity.com/articles/business_and_finance/article_16036.shtml

Essentials Of Wholesale Dropshipping Business

With the proliferation of World Wide Web, the spectrum and method of doing wholesale business has changed drastically over the past few decades. You can now start doing business without having to pre-purchase or stock any goods. All that needs to be done is to merely list products along with descriptions and graphics on the website of a B2B trade portal.

The secret of success lies in finding the right portal that has built its name and is well-known throughout the world of business for its extensive coverage of buyers and sellers. It would also be necessary to display the products of the wholesale business in an attractive manner with all pertinent information, prices, terms of business and graphics.

Basics of Wholesale Dropshipping Business

The essence of Dropshipping business is that you have to do some research and find products that would have a ready market and then find reliable dropshipping suppliers who would supply the goods against your orders promptly and without any complaints from your clients. You can only succeed if you can find saleable products and the relevant suppliers who will not let you down. Having done this exercise and having selected the right online trade portal, the products should be listed on that website in a proper manner.

You can then pass on the orders that are received, to the wholesale suppliers and ensure that the shipment is made on time. The website listing your products will receive the payment from the customer and will pass on the same to you after adjusting its charges. The payment to the wholesale supplier can be made thereafter.

Fighting Competition

It is obvious that since this business appears to be so simple, many people will be in the fray to capture the market. Competition will be fierce and you will have to find innovative means to fight the same for survival. The following tips will help in being successful in combating your competitors.

- The more attractive and informative your description of the product, the greater will be the possibility of impulsive purchases. It is essential that the information provided by you is persuasively descriptive.

- The description should be accompanied with attractive graphics and good quality photos of the products in actual use. It would also be a good idea to provide comparisons with other similar products. This will enable the visitor to the site to compare different products and make up his mind while he is still hooked on to your site. This will also prevent him from browsing and visiting other sites and ultimately it will improve your chances of getting the business.

- Offering a bonus with the product will prove to be very effective. The bonus could be in the form of reports containing interesting information and tips regarding use of the product.

- Once your client enters his credit card information and before the deal is closed, other products can also be recommended. If the wholesale order is for an electronic item, you can recommend related accessories.

Finding Good Wholesale Dropshipping Suppliers

If a reseller wants to have a smooth and profitable business operation, the most important thing is to find a good dropshipper. He will have no problems or hassles regarding delivery of goods, recovery of payments, and maintaining good quality of the products in line with what has been shown to the customer when the order was finalized. A drop-shipping list can provide names, addresses and telephone numbers of hundreds of companies but most of the time, these lists are outdated. As such, it is better to register with a website that has lists of itemized suppliers and make a choice. You can also become a member of wholesalers forums which will make it possible to get useful information by way of other peoples experiences and recommendations regarding reliable suppliers.

Wholesale dropship directories can also be consulted.

Wholesale dropship business can be profitable if proper research and homework is done in the beginning to find the right product and the right wholesale supplier.

Brand Attractiveness

Brand Attractiveness sells the Product

What makes a brand successful?

There are brand products that are extremely successful. In the meantime, whole categories of products were named after some brands. They can sometimes even feel irreplaceable.

'Persil is an attractive brand. When you think of Persil, first thing that comes to mind is the color white and cleanliness but also reliability. There was a slogan used for Persil for decades: You know what to expect. That was a good slogan.', said editor-in-chief of a German magazine 'Advertising and Sales' Jochen Kalka.

Persil is among Germany's most popular brands. More than 80 percent of consumers spontaneously say it's name when asked about washing powder. This Henkel product has been on the market for 100 years and has had a crystal clean image. It perfectly follows all product labeling rules.

Three commandments
Three product labeling rules are: selling ability, prominence and the most important - brand attractiveness. Each advertisement has to carefully present brand attractiveness to the potential costumer.' If you choose to ignore one of these rules, your brand could loose a big portion of it's positive image. The best example is Benetton. This fashion company wanted to gain popularity in the eighties no matter what. They managed to do so but they had not sold more sweaters on that account', said Jochen Kalka.
'Benetton is a great example of how fast and with the help of aggressive advertising you can make your brand popular. Benetton only managed to shock people and forgot a crucial part - attractiveness. The way they depicted AIDS patients or ducks covered in oil was a bit too aggressive. Benetton wanted to catch everybody's attention for whatever cost. But if you do not include attractiveness, your product could be in serious trouble'.

Who still believes McDonald's is healthy?

Another threat this marketing expert detected are the new advertisements which appeal to consumer's sore conscience. Lufthansa has, for example, calculated the amount of carbon dioxide emissions in their planes. There are also green cars. Another example would be McDonald's where a person could read about the nutritive ingredients in their hamburgers.

These 'sore conscience adds' conflict with the present brand image and do not correspond with reality, Kalka said. Because who goes to McDonald's for a healthy meal? However there are also positive examples. Like BMW's Mini as one of them. Or Mercedes. Jochen Kalka thinks marketing experts were successful in sending the intended message. Suddenly, even the cars which overturned during trial runs became attractive as well.

Mercedes A-class overturned during the trial run when it came across a curious reindeer. Mercedes acted provocatively and hired Boris Becker to send the message that everyone makes mistakes. It worked. Everyone forgave the fact that their car overturned. When you make a mistake, the easiest way is to admit it. That is also the smartest thing to do.