ENTREPRENEURSHIP — DEVELOPING A BUSINESS MODEL

1.0 What is Start-Up?

According to Wikipedia.org “a start-up is a company or project initiated by an entrepreneur to seek, effectively develop, and validate a scalable business model”. According to Investopedia.org “a start-up is a company that is in the first stage of its operations. These companies are often initially bankrolled by their entrepreneurial founders as they attempt to capitalize on developing a product or service for which they believe there is a demand”. Using deductive reasoning, we can draw from the definitions of start-up alluded above, that there are conditions that need to be met before we can call a business a start-up. These conditions are as follows: -

1. There needs to be a legally formed business such as sole proprietorship, partnership, corporation etcetera.

2. This legally formed business needs to be at its first stage or early stage of operations.

3. This legally formed business is currently developing or have developed a product or service for which the entrepreneurs believe are in demand

4. This legally formed business is currently seeking to develop and validate a scalable business model.

5. This legally formed business needs to be bankrolled

1.1 What is Business?

According to Wikipedia.org “Business is the activity of making one’s living or making money by producing or buying and selling products (such as goods and services). Simply put, it is “any activity or enterprise entered into for profit.”. According to Collinsdictionary.com “Business is work relating to the production, buying, and selling of goods or services.” When a legal entity is it an individual, firm or government buys or sells a product or service for the sole purpose of making a profit, this activity is referred to as a business.

1.2 What is a Business Model?

According to Wikipedia.org “A business model describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts. The process of business model construction and modification is also called business model innovation and forms a part of business strategy.” According to Investopedia.org “A business model is a company’s plan for making a profit. It identifies the products or services the business will sell, the target market it has identified, and the expenses it anticipates.”. In other words, a Business Model is simply a detailed plan of how a business entity will sell his or her products to its targeted consumers effectively, efficiently and professionally.

1.3 What does it Mean to Develop Something?

This means to make something grow up or more advance.

2.0 INTRODUCTION