Evolution Of Home Based Business Models
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Evolution of Home Based Business Models
The development of business models has a brief history. The oldest, most basic business model is the shopkeeper model.
This involves setting up a store in a location where customers are likely to be and displaying their product or service for all the passer-bys to see.
ut over the years, business models have evolved, changed and become more sophisticated.
The bait and hook business model was introduced in the early 20th century. This model involved offering a basic service for a low cost, often at a loss.
This part is the bait. Then by charging compensatory recurring amounts for refills or other products or services, this is the hook.
Examples are the razor, which is the bait, and blades, which are the hook, cell phones that are the bait and the service charges and airtime that are the hook.
In the 1950’s new business models came from some of today’s well-known companies like McDonald’s and Toyota.
In the 1960’s Wal-Mart was the innovator and the 1970’s saw new business models from FedEx, Toys R Us, the 1980’s pushed Blockbuster, Home Depot and many computer companies to the forefront with their innovative business models.
In turn, many dot-coms suffered because of their poorly thought out business models.
Today’s business models depend on how the technology available is used. Entrepreneurs on the Internet have also created new models that depend on the emergent of technology.
Using computer technology, a business has the advantage of reaching a large amount of customers with a minimal cost.
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