venturing

First, you think up a business model.

Some of you may ask: What's a business model anyway? Basically the business model is the answer to the questions
1) "What's your business about?"
2) "How does your business make money?"

So you need to use your business idea to answer these two questions in such a simple way, that you can explain this to your grandmother or a 11 year old and they understand it.

There are a million and one business models out there, so feel free to copy something that you see has worked. Here are a couple of examples:

Take the example of a jewellery company. They sell jewellery through agents to a variety of stores in Europe. The stores pay the jewellery company money, and the company pays the agents a fat percentage on the amount sold.

Take the example of the accountant around the corner. She does book-keeping for individuals and businesses, and sells her hours at an hourly rate. The more someone uses her hours, the more they pay her.

Frankly, you are the best person to answer that question. There is no best model. If it makes money, it's good! If it makes more money, it's better!!

Some comments though

1) try something small scale - something that in the beginning you can do as a hobby, and if it starts making enough money, you can quit your job and do it full-time.

2) A freelance business model is when you need to be present to make money. An entrepreneurial business model is when you make money when you sleep (Thanks Seth Godin) One is not necessarily better than the other.
Typically, a product or service that doesn't require a lot of hand-holding on behalf of you (like a coffeeshop) tends to fit an entrepreneurial BM, while highly customised services or products (like management consulting) that require constant monitoring on your part tend to fit a freelance model

3) The easier the business is to experience, the better the business model. I cannot emphasise this enough. Your job is to work hard so that your customers think it's easy.

4) The less money your business needs from investors (including yourself) the better the business model. Of course, the more money your business can make, the better the business model.

5) The more unique your product or service, the better the chance of success. nuff said!

6) The more widespread the business model, the better it is. Many people have used it, learnt from it, and they form a set of mentors you can turn to in case of trouble.