{"id":138502575,"date":"2015-08-12T00:00:00","date_gmt":"2015-08-12T04:00:00","guid":{"rendered":"https:\/\/acccapital.com\/the-importance-of-a-sound-business-model\/"},"modified":"2026-04-02T13:01:42","modified_gmt":"2026-04-02T17:01:42","slug":"the-importance-of-a-sound-business-model","status":"publish","type":"post","link":"https:\/\/acccapital.com\/hi\/the-importance-of-a-sound-business-model\/","title":{"rendered":"The Importance of a Sound Business Model"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-48881\" src=\"https:\/\/acccapital.com\/wp-content\/uploads\/2015\/02\/Business-Model.jpg\" alt=\"Business Model\" width=\"600\" height=\"563\" \/>According to Guy Kawasaki, author of \u201cThe Art of the Start,\u201d you don&#8217;t have a business model if you can&#8217;t describe it in ten words or fewer. What\u2019s his point? Investors want to know how your business will make money. I\u2019m sure you already know that in order for your business to survive it needs to bring in enough revenue to cover expenses and to cover overhead costs. The good news is that someone else has already figured out business models that work! So, you don\u2019t have to try to reinvent the wheel with this one, and Guy doesn&#8217;t recommend it. Mr. Kawasaki says that the smart approach is to relate to a successful and already understood business model.  How do you define your business model? Guy recommends starting with two questions: \u201cWho has your money in their pockets?\u201d and \u201cHow are you going to get it into your pocket?\u201d  Not sure where to find already accepted business models? Below we&#8217;ve listed a few commonly used business models:<!--more-->  <\/p>\n<ul>\n<li><strong>Bricks and clicks business model<\/strong> The bricks and clicks model involves an offline and an online storefront. Think of a store like Wal-Mart that offers a physical neighborhood location but also allows you to shop online and have products purchased online delivered to the store.<\/li>\n<\/ul>\n<ul>\n<li><strong>Cutting out the middleman model<\/strong> This business model involves removing intermediaries such as brokers or wholesalers and connecting the supplier directly to the customer. An example of this would be buying Toms shoes directly from the Toms website as opposed to a local reseller.<\/li>\n<\/ul>\n<ul>\n<li><strong>Direct sales model<\/strong> This type of business model reminds us of Avon or Scentsy. Sales are not made in a retail location but by utilizing one-to-one marketing, hosting product demonstration parties, and other similar, more personal selling techniques.<\/li>\n<\/ul>\n<ul>\n<li><strong>Franchise<\/strong> Franchising is the practice of using another firm&#8217;s successful business model. For the franchisor, the franchise is an alternative to building &#8216;chain stores&#8217; to <em>distribute<\/em> goods and avoid investment and liability over a chain. The franchisor&#8217;s success is the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business.<\/li>\n<\/ul>\n<ul>\n<li><strong>\u201cFreemium\u201d business model<\/strong> The \u201cfreemium\u201d business model offers a basic service or package for free (generally an online service such as Hulu, Pandora Internet Radio, or Hootsuite). The business generally charges a fee for the \u201cpremium\u201d service or upgraded features.<\/li>\n<\/ul>","protected":false},"excerpt":{"rendered":"<p>According to Guy Kawasaki, author of \u201cThe Art of the Start,\u201d you don&#8217;t have a business model if you can&#8217;t describe it in ten words or fewer. What\u2019s his point? Investors want to know how your business will make money. I\u2019m sure you already know that in order for your business to survive it needs [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":138502577,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[109],"tags":[],"class_list":["post-138502575","post","type-post","status-publish","format-standard","has-post-thumbnail","category-entrepreneurship-foundation-news","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Importance of a Sound Business Model | ACC Capital<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/acccapital.com\/hi\/the-importance-of-a-sound-business-model\/\" \/>\n<meta property=\"og:locale\" content=\"hi_IN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Importance of a Sound Business Model | ACC Capital\" \/>\n<meta property=\"og:description\" content=\"According to Guy Kawasaki, author of \u201cThe Art of the Start,\u201d you don&#8217;t have a business model if you can&#8217;t describe it in ten words or fewer. What\u2019s his point? Investors want to know how your business will make money. 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