Getting the idea for a start-up might seem tricky at first but that’s, in all honesty, the easy part. Executing that idea is where the real difficulties start. This is where a lot of people get stuck and most concepts fail to get off the ground. To make things work, you need to choose the right business model for your start-up. Figuring out the best way to make your idea work isn’t easy but luckily there are some tried and tested models you can choose from. Think about who your target audience is and what kind of content you wish to market – and make your choice carefully.
1. The Franchise Model
With the franchise model, you can start small and local. Set yourself up at the community level and concentrate your efforts on creating a system that you can sell to other people. Once you have that down, you can get in touch with others who are eager to start something new. By selling your idea to them and giving them the necessary instruction, you can let them take over the expansion efforts and save yourself the risk. There are numerous benefits to franchising and you should definitely consider it when the time comes to choose your business model.
2. The Broker Model
Reaching out to customers is difficult when you’re located in places that are physically far apart. You can make things easier for everyone by giving people a space where customers can meet sellers and both can get mutual satisfaction. The work of your start-up will be to ensure that this space is secure and all sales are handled properly. With Amazon taking over most of the world, there is no doubt that the Broker model has been immensely successful.
3. The Information Model
Almost everyone has, at some point, paid for a ‘how-to book’ or some online tutorial. When you have to sit down to choose your business model, think of infoproducts. Even the most niche market spaces will require information to be given and this is where you can step in. By selling infoproducts, you can actually aim for the moon. After you’ve finished creating the product and integrating it with different systems, you won’t have to spend a lot more on keeping up with the demand.
4. The Subscription Model
It is easy to sell a product and make a one-time profit. However, a lot of businesses are now turning to servitization or subscription. If you have a product that is easily perishable and/or requires frequent upkeep, choose your business model accordingly. By asking customers for a subscription fee, you can continue to offer them your products and services. People are also excited about this model because it gives them one less thing to worry about.
5. Software As A Service Model
Specifically for those start-ups looking to gain ground in the field of software. You can host your software on a central server and license it out to users in exchange for a recurring fee. All a customer will need is an electronic device which connects to the internet in order to use your product. From your central server, you can manage and maintain your program and its databases rather than having to go on site. This model is expected to see an immense increase in revenue in the near future so if you’re into software, you definitely need to consider it when you choose your business model.
Ensure that you have a good idea of your current scenario and the growth you can expect when you choose your business model. Just keep in mind that things won’t immediately take off. Patience and perseverance will see you through.