Choosing the right business model is also important

15 Sep

For the presentation of a businessplan, it is essential to choose the business model that will make money. 

The choice of the adapted model depends on the activities of a company.

Business model templates

Many options exist for companies looking for a business model that suits them. Advertising funding is an effective model on the Internet. It serves especially for free offers that generate a lot of visitors.

Freemium is the mix of paid and free models. The pattern of the hook allows to stock up regularly to ensure the continuity of the use of a basic product. The lowcost is an ideal model in times of crisis that saves on all possible elements to ensure a good return of money by selling a cheaper product and lower range. This mode of management is the guarantor, in such a context, of the coherence between the satisfaction of the customers and the proposed product.

The subscription is a model that adapts to any market because it ensures the stability of the company and gives it a good recurrence. Affiliation, meanwhile, guarantees the promotion of products and services and allows to monetize a site. Bidding is a profitable model and leasing, formerly reserved for the automotive and real estate market, affects all areas.

Disintermediation consists of avoiding intermediaries and is the oldest transaction of the economic model. It is used to resell a product or service for e-commerce sites and large distributions.

Pay-as-you-go is the business model associated with cost-per-click and pay-as-you-go or access is a model that pays for time spent in a bar, for example, and does not charge for drinks. The voluntary payment is a novelty where the customer only pays the price he thinks is the right one. Restaurants use it more often. The associated revenue model provides the opportunity to offer products while requiring payment for associated services or vice versa.

Yield management is a model with which a company varies prices according to demand.

Finally, the economic model of the printer is used to sell a product at a cost price, allowing customers to buy disposable but essential accessories.

Role of a business model

A business model is the first part of a business plan. It is a medium that reflects the potential of the project and confronts a company to the market. An economic model is a source of innovation that represents all the techniques put in place to define the overall strategy and create the value of a society. It is the basis of a strategy to be profitable in the market, to communicate, to sell or to attract customers.

Know how to choose the business model

Depending on the sector of activity, it is essential to choose the right business model. The scalable system allows a company to conquer new markets in order to grow quickly and achieve exponential profitability. The project must be scalable and reproducible. The brand must find its first customers through its network. To avoid being overwhelmed by events, we must be cautious to avoid high visibility resulting in unforeseen expenses and a flow of orders not manageable. It is therefore necessary to provide an evolving business model as well as a margin in terms of material resources and funding.

The foreign or competing business model is a model to enter a sector with strong competition. It is based on a capacity to provide added value and originality to its activities. For this, it is necessary to adapt the model of the competitors and to make an audit. Taking examples in other countries to see the difference in consumption habits and reflexes is also advisable.

The business model canva, from the book Business Model Generation, is in the form of a table with a box on the definition of the offer, the competition, the competitive advantages, the solution. It makes it possible to structure the project of the company and to make the remarks there clearly to carry out a constructive reflection.

Business model change (pivot)

Changing the business model would affect 9 out of 10 start-ups after analysis and understanding of unsatisfactory results. In this case, we must review the business model and retry its chance. Still in the same industry, a company can improve its business model as a point of sale where the customer can book an available product. It can also set performance indicators and reference stores.

If the business model lacks interest, it must be completely renewed or add information to the existing model, to complete the data and be successful. A company can also anticipate consumer behavior by offering products related to their real interests.

Switching from the BtoC model to the BtoB model involves changing the target instead of reviewing the business model. It is a type of pivot trend that tends to change the vision of the business model, while keeping the majority of its variables. We must therefore preserve the values ​​of his company and consider redoing his strategies.

A close-knit team is also important in a company to invest 100% and follow the leader’s choice for change.

The right choice of business model to launch your project

To realize its project, the company must know how to choose the business model that turns an idea into economic success. And this, taking inspiration from the competitors without reproducing them. Each company has its specificities compared to others that are in its sector of activity. It must identify its target and add value to its offer, even positioning itself in a specific segment. The study of the budget and the mode of payment should not be neglected.

To validate the economic model, it must be confronted with the reality of the field by looking for sponsoring prospects and sponsoring clients. They are promoters and users of the company’s products that could become shareholders. Free is also an effective system when launching an innovative article. The customer thus discovers the offer and adopts it.

Finally, a digital company must choose a flexible business model that is constantly evolving and can be constantly renewed.