A Business Model Of Deanna Durr

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Introduction In the last 10 years the United States has had its predictable economic downturns. Many companies felt the economic pinch. This was the beginning of mass layoffs. Citizens that were longstanding employees found themselves without a position and an income. Just as necessity is the mother of invention, many people decided to become entrepreneurs. This lack of faith in the economy spurred many people to become the masters of their own fate. DeAnna Durr is one such person. She would like to open a deli. But with various business models, which would be the best fit for her new venture. Business Models There are two obvious business models. These models are company-operated and franchise. A quick definition of a company operated business would be a startup, or business owned by an individual. A franchise is a business model that involves ones one business owner selling the licensing and trademarks and methods to an individual businessperson. The pros of cons of each are listed below. The startup model contains many benefits: • The owner is her own boss. • All of the profit belongs to the owner. • The initial investment can be very small. • The owner can do creative promotions.(i.e. Family night) • The owner has the freedom to create new products. • The owner can forge her own strategic alliances. • The owner can pick the location. • The owner has the additional flexibility of closing or moving the business. The startup model contains a few drawbacks: •

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