Entrepreneur’s Diary #102 Basics Compact – Today: “Business Model”

No company in the world can exist without “business”. Business is the essence of entrepreneurial work. Consequently, you will need a “business model”. I would like to make a clear distinction between two business model types:

I) Selling Actively!

You enter the market, your focus is on sales and you then deliver what you have sold. What I mean is that, for instance, you understand which IT services the market needs and you sell them pro-actively. You then want to deliver the best possible quality at the best possible time at the right place.

II) Generating a Great Offer!

You offer a very special service or produce very special material. They are unique and therefore self-selling! If we are, for instance, talking services, this means that you have the best experts on the subject. Or you offer a product of singular usefulness. If this is known to the market, it will sell “by itself” and you need no marketing.

As I see it, both variants are valid. Of course, the world is not black-and-white like I am painting it here. Mostly, a business model will have parts of both (for instance at a ratio of 70:30 for Type-I : Type-II – or vice versa).

Personally, I prefer model-II. That was also our original CLOU/HIT idea. You build something great which is useful to everybody (many) – and everyone (many) want it.

🙂 Of course, it did not sell totally without support. But when it was new on the market, it came pretty close! I would say more like 90:10 in favour of type-II.

RMD
(Translated by EG)

P.S.

For all the articles of my entrepreneur’s diary, click here:Drehscheibe!

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