Want To Start Your Own Business? Check Out 5 Startup Business Model Ideas!
As you know, having an amazing idea is different from making that idea a successful business. With the evolving technology, we’re seeing a steady stream of new startups and ventures which are shaping and making new benchmarks for the business world. However, numerous startups have failed and shut down their operations within a few years after the launch because even the most luminous idea fades if it is not executed properly. Therefore, the heart of every successful venture needs an appropriate and effective business model. In a nutshell, choosing the right business model is as important as choosing the right partner for the future.
Still wondering, where to start from or which business model works best for the company? Don’t worry, we’re here to your rescue. Here are 5 startup business models for you to consider that have proven to be fruitful for varied ventures around the globe.
Marketplace Model
Often called a less ownership model, it acts as an online marketplace that brings supply and demand together and takes care of the transaction between buyers and sellers. To make it successful, you’ve had to fully focus on the core business without worrying about overhead costs, indirect expenses, manufacturing costs and inventory to store because you don’t need it in this model. Best part? A mobile application will be enough to run the business and all you have to do is provide the customer with a reason to use your marketplace. Companies like Amazon, eBay, Airbnb are the biggest example of this model. If you’re able to overcome the latter, then an online marketplace will be a ticket to building a triumphant company.
Subscription Model
One of the most popular business models, this is mostly used by web-based and software-product companies. In a world which is turning more digitized, this model allows you to develop a good relationship with customers in the given time and it’ll lead to recurring sales which are a vital way to increase the business. As the subscription business is constantly evolving and adapting, so you’ve to provide a service which gets the visibility into the right consumer metrics. Companies who are using the subscription model are Netflix, SalesForce, and Spotify which give access to music, shows, movies and more for a monthly or yearly subscription options.
Customisation Model
If your first and truest love is apparel and you just want everyone to dress in beautiful styles, then this model is perfect for you. The fashion industry presently rules the customization trend which helps in aligning an organization with its customer needs. In our research, we also found that there’s a rising percentage of the population who is interested in custom-made products which reflects their specific tastes. Without running for the tailor, this model will make the services much simpler, where you’ve to sign up and fill up the details like size, colour, styles and it’ll be delivered right at your doorstep within the given time.
On-Demand Model
As the name suggests, this model completes the consumer demand based on immediate access to service and the time as they please. One of the top examples of this model is Ola and Uber, which let the customers request for a ride. They pick the customers and drop them off at their given destination. It seems similar to the marketplace model but it requires more hard work to become a thriving business. With each passing day, the on-demand model is becoming more efficient and profitable for the business arena. Whether you’re a budding entrepreneur or long-term profession, this model has something for everyone.
Reseller Model
This model can be an antipode of marketplace model which revolves around purchasing the products from a wholesale vendor at wholesale price and reselling it with a certain margin. Under this, you’ll find more reseller models which will be useful for the startup. In contrast to the marketplace, in this model, you’ll need a large investment and infrastructure, but you don’t need many salespeople which helps to lessen the cost. So, you should select this model by keeping in mind the above factors.
Well, each of these models consists of different advantages which you can use in building your startup. Once it’s selected you can make a map for the whole trip of growth for your company. So, read it thoroughly before selecting it.
Visit us at Higgle to run your business with zero investment!
Follow us on Instagram for the latest updates!
