Business Model Basics
Business as an industry has evolved and changed with every decade and era, bringing along changes in business models with it. With every new trend in consumerism, businesses have been forced to adapt to standards set by breakout startups and frontrunners in their respective markets. These rapid sets of changes to once-successful business models have spelled serious damages to sales across several markets. So, how does a business keep the consumer happy in the modern era?
In terms of marketing, advertising, and direction of funds, businesses today must rely heavily on social media in order to successfully advertise, as the effectiveness of advertising through a medium like radio, TV, and billboards has decreased significantly in the past decades. By advertising to customers in a niche through social media, businesses can much more successfully target specific audiences that are more likely to purchase a product. More importantly, social media offers a much cheaper alternative than big-bill advertising on TV or radio.
But the label of social media can expand beyond just the use of advertising through a company account. Instead of pouring thousands, or even millions of dollars into the production and broadcast of a commercial, businesses, particularly small ones, have begun reaching niche markets through the use of sponsoring influencers or content creators. By paying a fraction of what traditional advertising and marketing would cost, businesses are able to reach a specialized audience that is far more likely to generate leads and sales than blanketing a large mass of disinterested individuals.
Beyond the advertising model, the core of the business must be looked at as well. In a modern age, it has become very easily possible to create, build, and sell a product on a market, and then build a business around it. Furthermore, the market, especially in the digital world, is essentially unlimited for niche brands and ever-growing companies. Apparel companies, drop shipping stores, startups, and big-name brands alike all share similar key components, in that the business is controlled by a core individual or group. However, the approach to business today is becoming more and more individualized, as people take on small-time business as a side hustle. This is profitable in the short term, and can provide some long-term benefits, but as these types of companies and businesses grow, it becomes more and more crucial to increase the number of people in the core. This will delegate the workload and increase both productivity and efficiency within the business.
Developing your business model is highly important as your company and business grows and expands, and it is necessary to continuously revise and improve upon it in order to adapt to the conditions in the industry. If done correctly, this can give your business not only a boost and sales increases, but also provide long-term benefits that can take your company to the next level.
In terms of marketing, advertising, and direction of funds, businesses today must rely heavily on social media in order to successfully advertise, as the effectiveness of advertising through a medium like radio, TV, and billboards has decreased significantly in the past decades. By advertising to customers in a niche through social media, businesses can much more successfully target specific audiences that are more likely to purchase a product. More importantly, social media offers a much cheaper alternative than big-bill advertising on TV or radio.
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| Photo by William Iven on Unsplash |
Beyond the advertising model, the core of the business must be looked at as well. In a modern age, it has become very easily possible to create, build, and sell a product on a market, and then build a business around it. Furthermore, the market, especially in the digital world, is essentially unlimited for niche brands and ever-growing companies. Apparel companies, drop shipping stores, startups, and big-name brands alike all share similar key components, in that the business is controlled by a core individual or group. However, the approach to business today is becoming more and more individualized, as people take on small-time business as a side hustle. This is profitable in the short term, and can provide some long-term benefits, but as these types of companies and businesses grow, it becomes more and more crucial to increase the number of people in the core. This will delegate the workload and increase both productivity and efficiency within the business.
Developing your business model is highly important as your company and business grows and expands, and it is necessary to continuously revise and improve upon it in order to adapt to the conditions in the industry. If done correctly, this can give your business not only a boost and sales increases, but also provide long-term benefits that can take your company to the next level.
