Evolution of Home Based Business Models

Business model development has a short history. The oldest and most basic business model is the merchant model.

This includes setting up shop where customers are likely to be and displaying your product or service for all to see.

Over the years, business models have evolved and changed and become more complex.

The Bait and Hook business model was introduced in the early 20th century. This model involves offering basic services at low cost, often at a loss.

This part is the bait. This is the hook, by which the Compensatory charges recurring fees for recharges or other products or services.

Some examples are baited razors, baited blades, baited mobile phones, baited service charges, and airtime.

In the 1950s, new business models emerged from some well-known companies, such as McDonald's and Toyota.

Wal-Mart was an innovator in the 1960s, saw new business models from FedEx and Toys R Us in the 1970s, and in the 1980s propelled Blockbuster, Home Depot, and many other computer companies to the forefront with its innovative business models.

Many dotcoms have suffered due to poorly thought out business models.

Current business models depend on how they use available technology. Internet entrepreneurs have also created new models that depend on the advent of technology.

Using computer technology, a company has the advantage of reaching a large number of customers at a low cost.