Entrepreneurship is the backbone of the economy, however a majority of new business ventures end in failure. It is necessary for that entrepreneurs plan carefully and strategically in order to ensure success. Entrepreneurs must choose business models and strategies that are relevant to their specific business and industry. They must also utilize strategies that enhance positive cash flow, cut down on waste and ensure maximum efficiency of resource use. Some of the business development models that can be utilized include:
- "Acquisition" of of high value customers" - these are customers that can be located with minimal effort, are profitable and generate enough revenue and minimal marketing cost.
- Outsourcing - Entrepreneurs should concentrate on their core strengths in regards to their product or service and outsource all non essential tasks. The Internet and global economy allows almost anything to be produced or serviced from anywhere. For example if you produce widgets, you can have all your financial and human resource functions outsourced to a professional human resource company and your sales handled by channel partners. While concentrating on producing your widgets
- Deliver exceptional customer value - This involves all the levels of your customer engagement, from customer service to competitive pricing. This will differentiate you significantly from your competitors in the eyes of your customer.
Their are a host of other models that entrepreneurs can use, the model of combination of models chosen will be dependent on the specific industry that an individual is in.