You have a product idea in your mind and you plan to make a business out of it. The next thing that comes to mind is how to sell it, isn’t it? Starting a business is not as simple as it seems. Not only do you need the product and funding, but you also need the time to research on how to ensure that you can maximize your profit by simply choosing the right business model of your product idea.
You may think, “Nah! Why not simply open a store and sell it as it is?” Please! That kind of thinking will make you lose out on many opportunities that you could’ve taken to earn even more than your product promises. With today’s generation and advance technology, there are so many ideas and tools that you can take advantage of to help you hitch your business at the right place or platform. Who knows? You might turn out to be the next big thing in the industry you chose!
That is why, instead of jumping the gun with starting your business, give it a proper thought and research as you go through the different business models that you can implement for your business. The following are the most commonly used business model sample:
• Subscription-based – a very popular business model where your customers will need to pay subscription fee to gain access to your product/service.
• Project-based – mostly applies for teams or individuals that works on either short or big-time projects then get paid for a set fee.
• Product-based – commonly used business model where you sell physical products.
• Service-based – works the same as product-based except you sell services instead of items.
• Retailing – a business model for those who prefers selling products acquired from a distributor or wholesaler.
• eCommerce – with the help of today’s technology, this business model tops the other business model since every transaction is conducted online which is very convenient.
• Rental – this kind of business model operates just like it is, renting, either renting properties, equipment, products, etc.
• Franchising – a business model where you use another’s perfected business concept in exchange for a percentage of profit.
• Marketplace – another popular business model where you offer a platform to connect buyers and sellers. It is applicable not only for brick and mortar businesses but also for eCommerce.
• Niche Business – the focus of this business model will depend on the needs of a market niche and sell it in a way where other larger businesses can’t.
The above list is, of course, not the only business models that exists in different industries. To know more about different business models with examples, you can read more here: Startup Business Model Examples – Your Key to Success. Also, feel free to download financial model templates at eFinancialModels, a platform which offers a wide-range of industry-specific financial model templates for different use cases created by financial modeling experts with a wide-range of know-how and vast experience when it comes to financial modeling tasks. So, before starting your business, give it some time and prepare to research first to get a better chance of success in the long run!