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Business

Business is the process of creating and capturing value. All viable businesses are based on a business model that represents a method for creating value for customers and capturing this value as revenue in a competitive market. The following are the basic types of business.

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A business that licenses a complete business. For example, a restaurant chain that provides everything required to open a restaurant location such as know-how, processes and branded products and services. This benefits the franchisor as they can expand profits without investing more capital. 

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Developing products and services that meet relatively unique customer needs.  Business models based on the reuse of products and assets. This is a way for a small business to compete with far larger competitors that benefit from superior economies of scale. For example, a small local bakery that offers high quality wedding cakes.

Types of Business

A business that allows amateurs to access a market that was once exclusively controlled by professionals. For example, a video sharing site that allows anyone to monetize videos. This may compete with professionally produced television shows, music videos and movies. A broad category of commerce that includes any sale of goods or services that use digital channels. 

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