Changing your business model can lead to success. In fact, many recognizable companies have changed their models over the years, leading them to become far more successful. Being able to remain flexible aided them in that success.
There are different factors as to why startups fail, which makes having good startup models and the flexibility to use them even more important than ever before. Without a solid foundation in which to base your startup company, finding success will be even harder.
It’s a good idea to take a look at some previously tried-and-tested models that can help give you an extra edge when diving into the world of a startup company.
We’ll go through 4 such models that may help you in further detail below.
The Marketplace Model
This model lets you bring together both the supply and demand into one place. It has great advantages in that there is little to no overhead and, depending on your product, there is no need to keep inventory.
Essentially you are the middleman between the buyers and the sellers or product. You help the buyers find what they want to purchase, whether it is a physical good or a particular kind of service. During that transaction, you’ll take a small piece of the profit for your trouble.
It’s possible to run this kind of model in an office or, as is the growing trend this year, you can run everything virtually.
The Freemium Model
With the use of this model, you offer your customers a more basic rendition of your service for free while offering them more advanced services for a fee. This model works well compared to other startup models because you give your customers a taste of what the service is like without giving away everything for free. If they want to have the full package, they’ll need to buy your service properly.
This type of model tends to be more successful than trial period models and allows for your customers to feel more comfortable with your company as a whole because you give them something for free.
The Virtual Goods Model
This model brings you revenue through services or goods that are only available online. Often this model is used with in-game purchases that a customer can use to give them an advantage in a game. Because this type of purchase is useful to their game, it makes this virtual item more valuable.
You can also use this kind of model to send virtual gifts to loved ones, such as a sentimental card or a flower. With so many people spending more time on the Internet and on social media, being able to send affectionate gifts to friends and family feels more valuable and worth-it than it may have in the past.
The Subscription Model
With this model, you deliver a service or product to the customer in regularly timed intervals. Your customers will pay a flat rate and can be assured that your product will arrive at them in an expected time frame.
This model allows you to predict your revenue due to the recurring sales which can be a great asset to a newly begun company. As you continue to deliver your service on time, you will grow your company’s presence in the market which will help it to continue to grow even more.
Using Established Startup Models Jumpstarts Your Business
All of these models have been implemented by previous startup companies and will continue to provide a good jump-off point for future companies.
Instead of simply attempting to break into the startup world by luck, make use of these established models to ensure that your company will have the best start possible. Giving your own business this extra backbone to rely on can only make your startup stronger.
Have you tried any of these startup models before? Let us know in a comment below.
Or you can contact us with any questions you may have.