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Business model
by abacus » Tue Jun 16, 2009 1:23 pm
- abacus
- Green Belt
- Posts: 217
- Joined: Tue Jan 27, 2009 1:11 pm
I've been thinking about this business model.
Maybe it's old hat/simplistic.
But I've ebeen thinking about the orthodox box-store model,and all that's involved,in terms of overheads over and beyond production costs,and the inventories that are required to be on the shelves,through licensing or self-manufacture.
I was wondering about how many units have to be sold over what period of time to break even and then go into profit,the scale of production that's required to maintain this,and the uncertainties and fickleness of the market-place,the marketing and advertising costs,labour etc.etc. to sustain the operation.
It seems that the cost of production,distribution and retailing and ancillary costs mean that a certain market size is required.
So the orthodox mass retailing model is predicated on a market demand and strong indicators of this demand to justify rolling out a new product.
This mass-market retailing model is also dependant on branding marketing and advertising to keep the fires burning.
So it is a high cost business model.
Overcoming consumer resistance is a big cheese.
Theoretically,say you found a market for your product[the invention-based product-affordably produced and reasonably priced,drop-shipped]then how does your break-even point compare in terms of sold units.
By taking out a swathe of costs,your business model offers an interesting opportunity.
Building in scalability,both up and down,offers a more flexible model.
The bottom-line,really,is that as inventors,we want to make some money,i.e. benfit from our inventions,rather than being ground down and busted by them.
So we start small and practical and stay that way if it suits us-or not
Maybe it's old hat/simplistic.
But I've ebeen thinking about the orthodox box-store model,and all that's involved,in terms of overheads over and beyond production costs,and the inventories that are required to be on the shelves,through licensing or self-manufacture.
I was wondering about how many units have to be sold over what period of time to break even and then go into profit,the scale of production that's required to maintain this,and the uncertainties and fickleness of the market-place,the marketing and advertising costs,labour etc.etc. to sustain the operation.
It seems that the cost of production,distribution and retailing and ancillary costs mean that a certain market size is required.
So the orthodox mass retailing model is predicated on a market demand and strong indicators of this demand to justify rolling out a new product.
This mass-market retailing model is also dependant on branding marketing and advertising to keep the fires burning.
So it is a high cost business model.
Overcoming consumer resistance is a big cheese.
Theoretically,say you found a market for your product[the invention-based product-affordably produced and reasonably priced,drop-shipped]then how does your break-even point compare in terms of sold units.
By taking out a swathe of costs,your business model offers an interesting opportunity.
Building in scalability,both up and down,offers a more flexible model.
The bottom-line,really,is that as inventors,we want to make some money,i.e. benfit from our inventions,rather than being ground down and busted by them.
So we start small and practical and stay that way if it suits us-or not
Re: Business model
by chloe26 » Thu Apr 22, 2010 7:55 pm
- chloe26
- White Belt
- Posts: 7
- Joined: Mon Apr 19, 2010 12:52 am
I think that having a business model is a good one since you will have some guide on how your business should run and know the right priorities too.
BPO Manila
BPO Manila
Re: Business model
by apapage » Sat Apr 24, 2010 7:02 am
- apapage
- Green Belt
- Posts: 214
- Joined: Tue Jun 23, 2009 6:30 pm
- Location: NYC
A business plan is a must!!!!
I had a recent experience with an individual that didn't know the value of the business plan. Ultimately, he had a goal to make money with inventions and patents. He was able to get funding for his "goal", he put a group of inventors and patent specialists together, and simply instructed them to invent and file patents. Fast forward 3 years and millions of dollars (most of which I considered wasted), and there is no prospect of revenue in the near term. In this instance, a business plan would have at least provided the needed focus that ultimately would have limited waste. One glaring example is filing foreign applications in countries with no likelihood of success in terms of generating revenue.
I had a recent experience with an individual that didn't know the value of the business plan. Ultimately, he had a goal to make money with inventions and patents. He was able to get funding for his "goal", he put a group of inventors and patent specialists together, and simply instructed them to invent and file patents. Fast forward 3 years and millions of dollars (most of which I considered wasted), and there is no prospect of revenue in the near term. In this instance, a business plan would have at least provided the needed focus that ultimately would have limited waste. One glaring example is filing foreign applications in countries with no likelihood of success in terms of generating revenue.
A Papageorgiou
http://www.patentlawforinventors.com
http://www.patentlawforinventors.com
Re: Business model
by Michelle » Sat Apr 24, 2010 10:34 am
-
Michelle - Black Belt
- Posts: 1529
- Joined: Wed Oct 11, 2006 7:27 am
Some people have really like using the Business Plan Pro software. It comes for Windows and Windows and you can even download. it.
It has samples and instructions...so you may want to check it out Business Plan Pro.
Michelle
It has samples and instructions...so you may want to check it out Business Plan Pro.
Michelle
4 posts
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