by Tebello Hlalele
Different kinds of Business Models.
A business model is a plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products, and details of financing.
It is also a structure that supports the viability of a product or a company and explains how the company operates, makes money and how it intends to achieve its goals. There is a number of business models that entrepreneurs can use but on this article we focus only on: Manufacturing, Distribution, Retailing and mainly Franchising.
Manufacturing is the production of merchandise for use or sale, using labour and machines, tools, chemicals and biological processing, or formulation. Manufacturing ranges from a lot products, depending on your customer needs and feasibility of the business.
We have to deviate from assuming that manufacturing is for big or well known products and companies. At a suitable enviroment, if the product manufactured allows, one can start manufacturing any product they want. However reseach is essential in concluding what you want to manufacture.
Working hand in glove with manufacturing is Distribution, which is the process of making a product or service available for the consumer or business owner who needs it. Distribution of a product can be done by the producer or intermediaries.
Logistics, which is part of distribution is a very effecient and profitable business if the right clients are attained and satisfied. Business in distribution needs contacts more than it needs reseach.
Retailing, which is selling consumer goods or services to customers through multiple channels of distribution to earn profits. Retailers satisfy demand identified through a supply chain. Franching is a strategy used by businesses/ organizations for the marketing and distribution of their peoducts or services.
Franchise ranges from different industries namely: Food, Education, Fitness, Retail, Travel and Leisure etc. To open a franchise, one has to do an online test, research, apply for franchise, align with legal requirements and documents and sign agreements.
But, what if you own a fast food outlet and you want to franchise it? First you will have to register franchise trademark, logo and slogan. Open a second or third outlet, put together a training programme, prepare legal documents, make the franchise profitable.
For social media platforms, people can follow me on twitter @Panda_Hlalele and Tebello PandaPrenuer Hlalele on Facebook.
Until next week, bye-bye for now.
Tebello “PandaPreneur” Hlalele
Business Collumnist: FS News Online
Tebello is writing featured articles for FS News Online, weekly. He covers various Business related topics and answer relevant questions.
About the Author: Tebello Hlalele, a 22 year old entrepreneur, student and future leader from Meloding Virginia, currently residing in Bloemfontein. He is currently leading a programme called “Hustle on the move”. He aim is to get entrepreneurs in the Free State to reach their desired destinies. He also has a 30 minutes slot with Ace Moloi on Kovsie FM every Friday that interacts with entrepreneurs regarding their challenges.