A business model is a foremost thing for any business. No matter how unique your idea is or how cool it is it must be worthy of making money that is worth the investment in the future to stay in the market. Many founders use this term business model while starting to plan for any business. The point is that what exactly is the business idea that will work with my idea or how do I know that which is the right model for my business to find the overall success that is needed in the long run.
The business model that you decide to choose should touch your customers pain points better than what your competitors are already doing. There are many business models that are available in the market but the skill is to choose the one that suits the best for your business. If you are one of those founders that believes that you have a new business model that can be a good investment in the future then you must validate them by experts. Howkya is an online platform where will you get your business models validated from experts.
There are many business models that are already successful in the market. You just need to know which is the best for your business. If you don’t know where to start here are some examples that will help you decide the one for you.
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1. Marketplace Model
This business model is an evergrowing state and always proves to be highly effective for any business. In this, the supply and demand in the market are brought together in one place. Airbnb, Uber are some of the successful types of marketplace business model. Airbnb’s business model of renting homes through the internet to random people can seem pretty creepy when you hear it for the first time. But the founders were pretty sure that there was a shortage of demand and supply and so it worked so well. Myrsa is also one such platform that rents out spaces to people in need on a temporary basis. From activities like Yoga to Food fests, you can find spaces just like you book a hotel. Providing service is out and becoming a marketplace is a wise choice of most entrepreneurs.
There are many advantages to these types of business model. The main advantage would be that it requires no overhead cost or no inventory to start with. You can have a small office space or run your business online. In the manufacturing business, there is a huge risk of making sure that the inventory that is produced has to be sold. In a marketplace, you can let go off all these worries and then focus on bringing the buyers and sellers. Amazon is one of the leaders in the marketplace which helps the sellers to sell at a discounted price and increase their sales and the customers are happy to find the exact products at their convenience.
2. Subscription Model
This is a rising business model in today’s time. The worry of buying the product every month without fail has been made easier with the subscription model. People can subscribe to a particular product and they can get rid of the worry. They will have their product at the desired location at the desired time of the month. Subscription models from daily groceries to a monthly subscription of magazines are very popular. As the use of mobiles have increased it has now been easier as people get notifications every time. Advertisements that are crazy with a funny spokesperson can increase your subscription levels which will then help you get back your initial investment. It is also better in the business owners end as he can then predict the future sales of a particular product. This will increase the value of any business from the investors.
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Netflix is one of the most popular when it comes to the subscription model. An affordable monthly service that lets you view all your tv shows and movies anytime anywhere and you know that people are going to be subscribed to watch that new season. Spotify is also one app that will allow you to listen to songs with a monthly cost.
3. Customized Everything
Consumers shift towards personalised products that have their own specific taste. This has led to an increase in the customization trends in the market. This is the reason why coke added names to their bottles while packaging, automotive is making cars that match your colour preferences and now even brands like Nike have allowed you to design your custom sneakers. The customization trend started with the clothing sector where people used to design their own clothes and colours and patterns. Products like these are usually expensive. Compared to previous years there has been an increase this year in customisation.
4. Freemium Model
The use of this business model that is a combination of Free and Premium has been used by recent startups very much. This means that the business provides some features free to the customers like the basic features which let the user keep on using and the advanced features are charged as a premium price. Linkedin is one such example that lets you use it with sharing your profile and interacting with other members but there are some features that are for the premium members that lets them enjoy the perks of that platform. You should make sure that there is a perfect balance between what you give your customers for free and why they should buy the premium plan. Freemium models are also popular for the 30-day free trial account.
Consider all these according to your business and start with any one of them. All your business ideas before starting should be validated by experts. Business experts will perfectly know how the market works and they will guide you through the best. Howkya will let you draft your ideas and ask experts what will be best for you. It is a business idea validation platform and business model validation that will help you grow in your business