8 Powerful Business Models for Your Startup!
Startups are typically born out of innovative, bright ideas however they will eventually die out if they don't have a viable business model. Before embarking on more details, let's first define ...
What is a Business Model?
A business model, at the heart of any business, is a strategy for operating a business. It describes how a company will generate value for its customers, taking into account many key considerations, such as:
identifying who are your target customers?
what problem/s are you solving for them? and,
how are you solving those problem/s, to generate value for your customers?
Business Model is not Revenue Model!
The business model in a holistic manner describes how a company generates value for its customers. The Revenue Model describes how a company generates revenue from that value proposition, and is, therefore, an important component of the business model. Although a company may have multiple revenue streams but typically has only one business model.
How do you generate a business model or business model process?
To help you generate a business model, let's go through the below image.
Image Source: BMILab
And, explore these four dimensions of the business model:
WHO is your target customer (market/segment), and what is their key need/problem that you're solving?
WHAT is your offering i.e. benefit/value proposition (lower costs, speed, high productivity, savings) that your product/service provides to its target customers?
HOW is this value generated?
what are the main tasks/activities you need to do?
what resources/technology are you using, and
what partners do you need to rely on?
HOW would the company earn its revenues as well as profitability?
You could also use a Business Model Canvas to structure this in a more coherent way. A great way to do this is here.
Need help in crystallising your business model? Register here.
8 Business Models for the Startups!
So, below are the 8 known business model examples for the startups, based on the suitability along with key factors to track as well as optimize.
Source: Lenny's Newsletter
Additional Read: Platform Business Models.
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