Business models
The essence of a hire service’s business model is how it organizes to do business – how a hire service provides value through its services, acquires customers, serves customer needs, sources its equipment, finances such equipment, and how it makes a profit. The business model approach takes into consideration the networks and relationships a hire service has in place to earn money.
A business model will reveal which networks a hire service provides to connect to customers and which transactions it enables, how these are governed and the costs that are incurred. Identifying current business models of a hire service will enable to appraise, assess and diagnose how the hire services may organize and market it services. Furthermore, it can reveal its strategies and plans, how it may innovate and how entrepreneurial it may be.
The intent of taking a business model approach for the development of hire services is to facilitate improvements in the business and operational processes of the hire service. The business model approach involves identifying and analyzing the existing business model or models, a diagnosis of the current situation, the facilitation of design, implementation of new or modified business models, and the monitoring of such business models.
FAO provides technical support and backstopping in-country for the development of appropriate ad hoc business models for the development of hire services as a business; technical support and backstopping for public and non-profit service providers supporting hire services; capacity building and capacity development for hire services to function as a business; training on business model development developing hire services as a business; appraisals, assessments and diagnosis of current business models being used by hire services; support, technical backstopping and design facilitation and implementation of new or modified business models, and the monitoring of such business models; appraisals, assessments and diagnosis of current business models being used in the equipment supply chain and in food value chains as related to hire service business operations and macro business models for hire services at local and national level; and technical support and backstopping for field-projects related to developing hire services.