Everything starts as an idea, followed by a test plan that will define how and if that business plan can be materialized.
The first questions of a Start-up are:
- Monetization – how the company will be monetized?
- Business Model – define which will be the business model.
- Structural Base – where to set up.
According to management guru Peter Drucker:
“a business model is supposed to answer who your customer is, what value you can create/add for the customer and how you can do that at reasonable costs.”
Here are some examples of business models that are already succeeding and can work for you:
Direct sales: by eliminating the intermediary, you gain agility, flexibility and closeness to the customer. Costs are lowered in the supply chain and, in some sectors, is gained in alignment with the values of demand.
Freemium: a business model based on the offer of a free product or service. There is always a great demand for free and, within this public, there is a percentage of consumers who would pay a certain amount in exchange for more benefits or greater coverage.
Online sales: the online community does not rest and the search for the best deals and the most profitable offers are a powerful incentive for a segment of buyers.
Crowdsourcing: the value of millions of users lies not only in being able to turn them into customers, but also in knowing how to use their ideas.
Network marketing or multi-level marketing involves a structured network of people who sell a company’s products. The model runs on a commission basis where the participants are remunerated when –
* They make a sale of the company’s product.
* Their recruits make a sale of the product.
This model is purely online and offers a new approach to companies that develop applications.
Not all companies are governed under this type of business model, some even merge. The business model you choose will depend on what your needs and the value you want to create for your company’s brand.