If you want to know more about commerce, that is, how a business makes profit from trade, then think about a cafe, an example of a ‘simple’ business model.

A cafe is an example of a business with a simplistic business model. It makes profit from earning more money than it costs to provide food, beverages and associated products. But what is involved in running a cafe and how much does it cost?

Here is an excellent article that explains more: Social Business Planning

There’s more to it than might be obvious. Remember every business has had to invest in its startup, suffers from running costs and overheads, and must pay for product development and other innovations. As well as any ‘real profit’ its owners want to take out.

Understanding how small businesses earn profit is a great way to learn how much larger, much more complex businesses pay their shareholders.

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