After acquiring the right skill set and a vision for the future, new age entrepreneurs are now chasing some exceptional business models as the most appropriate means to the desired end.
Here is what these top 5 inspiring business models look like:
1. The Aggregator Model
Current Executors: Uber, Oyo Rooms
Success Factors – Partnership, Standardization, Branding, Viral Marketing
This model allows a budding entrepreneur to start a service providing company on a very large scale, without having to own the products used to produce the service in question. Instead, collaborations with independent product owners are done and efforts are invested in the marketing of the product to promote popularity and revenues. The user experience and product quality are vital in this kind of a model and such a business model demands the standardization of both.
2. The Marketplace Model
Success Factors – Robust Platform, Branding and Marketing, Less Commission, Great Support Team, Strict Monitoring.
This model facilitates a direct interaction between the buyer and the seller, via a common platform and makes a commission when the deal is done. Strategic marketing, superior support team and fraud management on the platform can make this model a huge success. Massive eCommerce giants are making a shift from inventory model to marketplace model.
3. The On-Demand Model
Success Factors – Quality of Product, Intelligent Marketing.
Offerings made by entrepreneurs under this model are very beneficial for the consumers and thus this is the most popular model of 2018. Such a model is apt for a fast paced, cost conscious consumer who wants to pay for the duration of time of the service used and this is a welcome break from the membership model. There is a huge scope of scaling in this model as staff can be hired when the demand is more, and the same staff can be dismissed when the demand is less.
4. The Reverse Auction Model
Success Factors – Robust Platform, Strict Monitoring, Low Commission.
Though this model requires strong vigilance to identify genuine sellers and protect buyers, it guarantees fast success, and that too with a low start-up cost. This model bids adieu to high prices as sellers compete with each other when the buyers posts a requirement. Buyers may also check the past record of the sellers and choose who to shop with.
5. The Freemium/Subscription Model
Current Executors: Spotify, Netflix
Success Factors – Unique Product, Targeted Audience Selection, Adding Value To Premium Members.
Starting with a freebie to impress your audience, this model is excellent in breaking the ice. After the need for the product is created, the customer then automatically subscribes to the product and this ensures robust growth of the business. Risk, initial capital investment and marketing is all high in this model. This is a universal model and can be added to any other business model.
Understanding each model and then mapping its offerings to your business needs is what can make any one of these a huge success. Pick a model that best suits your business demand and something that clicks instantly with the consumers.