The business model is the point of acceptance for any successful startup business. No matter how strong an idea is or how unique an approach is, a startup must have a viable way to make money that can sustain sufficiently.
Let’s start with, what is a business model? And how do you know you if your startup business has got the right model?
A business model explains what consumer problems your startup chooses to resolve. The model shall define why your solution works better than competing ones. How big a wedge a business can drive. How many customers are willing to pay, and what are the expenses?
There are many different models one can choose from for a successful business. You are selecting one best suited to your company’s needs and domain that determines your company’s future.
Sweat not, we have got five business model that has proven to be successful for the majority of the startups:
1. Cut Prices Now, Gain an Industry Share Later
Focus on a large market, and sell a product with quick delivery and excellent service at the lowest possible price, expand the product line as the business grows. Then negotiate volume discounts with vendors and invest in technology to speed up customer response time and reduce organizational waste.
They are thus ensuring to deliver the lower cost to the customers with maximum value.