Your business model reflects the way your startup is going to generate income. It includes your company’s product/service, target market, and anticipated costs.
If you come up with an effective business model, your startup is much likelier to take off. Let us tell you what existing business models have proven their value.
Customization
Some companies are using already existing products or services adding new elements to them. This way, they make each sale unique for a particular customer.
As an example, there are touristic agencies which organize tours for independent customers. Customization is also applicable to such brands as Nike.
Examples: Nike, Coral Travel.
Crowdsourcing
If you manage to bring together a lot of people who empower your website with content, you are using a crowdsourcing model. This business model is frequently combined with an advertisement format for generating income.
Though, there are different options. For instance, you may enable designers to make a new T-shirt design and pay them a sale commission.
The companies that are trying to solve difficult problems often speak about them in public in order to get advice. The authors of great solutions get rewarded and the company can develop its business thanks to their advice.
The key to the successful business model of crowdsourcing is a proper encouragement of the crowd.
Examples: YouTube, P&G Connect and Develop.
Franchise
Franchising is especially popular with the restaurant industry. However, you can face it in other spheres as well, from cleaning services to recruitment agencies.
This business model means selling a strategy for having your business launched and developed by someone else. Typically, you also sell access to your brand and support services that help new owners operate on the market. In essence, you sell access to the successful business model which you’ve developed yourself.
Examples: Domino’s Pizza, McDonald’s, Subway.
Which business model have you tried or would like to?
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