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Business History and Business Model Explained:

Business Model Explained: If someone asked you how your business works, your answer would be your business model. You should mention the business's significant characteristics and critical systems and processes and also say something about the sales and profit-generating strategies. 
 
A business model is an analysis of a business that outlines: - who your customers are; - to whom you sell and how; - what you sell and why; - how you deliver it. 
 
It is an overview of how your business operates. Here is an example below: 
 
We operate a retail garden and landscape supply store in the northern suburbs of Belconnen, and we do landscaping for residential clients and commercial construction companies in that area. 
 
We predominantly generate our new business through local radio, and the local newspaper called the Canberra weekly. We have a salesperson that converts those leads, and they spend about 70% of their time on commercial clients. 
 
We make home deliveries of plants and landscape supplies, and we offer landscape design services for a fee which we subsidise based on the value of the customer purchase and pass business. 
 
Our pricing strategy targets the upper range of comparable businesses in our market and area. 
 
We don't grow any of our plants, make any of our landscape supplies and mark them up by about 100% on average for resale. We keep a large inventory because our suppliers are only sometimes reliable and we want to stay supplied with high-demand items. 
 
We are more concerned with quality and customer service, and efficiency. We offer no questions, money-back guarantees and all the work products. 
 
Our strategic intent is to grow our business by expanding in the Tuggeranong market by opening a new retail store. This will change our model because we will now be purchasing centrally in distributing to our retail hubs. Having multiple retail stores will improve our buying power and allow us to cut our cost base and increase our profitability. 
 
Business History: This is in simple terms and explains how the business has been in operation, who started and the ownership and operational history.

Example Documents:

Frequently Asked Questions

What are the different types of ways you to create or deliver value?

In the book the personal MBA by Josh Kaufman there is a fitting example of the 12 ways economic value is created in a market economy.  
 
These are: 
 
1. Product - Create a single tangible item or entity, then sell and deliver it for more than what it cost to make. 
 
2. Service - Provide help or assistance then charge a fee for the benefits rendered. 
 
3. Shared Resource - Create a durable asset that can be used by many people, then charge for access. 
 
4. Subscription - Offer a benefit on an ongoing basis and charge a recurring fee. 
 
5. Resale - Acquire an asset from a wholesaler, then sell that asset to a retail buyer at a higher price. 
 
6. Lease - Acquire an asset, then allow another person to use that asset for a pre-defined amount of time in exchange for a fee. 
 
7. Agency - Market and sell an asset or service you don’t own on behalf of a third-party, then collect a percentage of the transaction price as a fee. 
 
8. Audience Aggregation - Get the attention of a group of people with certain characteristics, then sell access in the form of advertising to another business looking to reach that audience. 
 
9. Loan - Lend a certain amount of money, then collect payments over a pre-defined period of time equal to the original loan plus a pre-defined interest rate. 
 
10. Option - Offer the ability to take a pre-defined action for a fixed period of time in exchange for a fee. 
 
11. Insurance - Take on the risk of some specific bad thing happening to the policy holder in exchange for a pre-defined series of payments, then pay out claims only when the bad thing actually happens. 
 
12. Capital - Purchase an ownership stake in a business, then collect a corresponding portion of the profit as a one-time payout or ongoing dividend. 

What is the reason we should provide this information to the buyer?

We want to explain to the buyer in simple ways how the business operates. How it delivers value to the customer while making financial returns to the owners. 
 
How does it work so they understand why they should own it. 
 
There is an old saying in sales that is:”If they cant understand it then they can own it”  

What if i need help writing this section of the business information

We can put you in touch with a copy writer for $60 per hour.   
 
What he can do is interview and takes notes then write your business history and business model. Provide it abck to you in editable format so you can touch-up.   
 
I would factor 3-6 hours to meet, research and write.  
 
His name is Paul

What is the difference of the history and the model of the business?

The history of the business is simple that who owned it when it was started has it changed its name. The story of the business. 
 
The business model explains hw it creates value for the customers and the owners of the business. This really is how you explain what the business does and how it makes profit.