- Category: Blog
- Last Updated: Wednesday, 19 July 2017 15:29
Most businesses are based on a single type of income model. Garages, electricians and restaurants all rely on selling their services for a one off cost. If you need your car fixed, you pay the garage a one off fee for doing it. Fancy a meal out? You'll need to pay a lump sum to do so. These businesses rely on large one off purchases to keep going.
Other businesses, such as internet providers and T.V. services (think Sky Sports or Netflix) are subscription based. They rely on a large number of customers paying a little each month.
Each business model has its own benefits. A normal business generally requires a lot of work for each new customer. For example, if you're a mechanic, you fix a car and charge the customer £200 for this. That's a lot of income in one go but what happens tomorrow? What happens if no cars break down, how will the business survive?