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.