Business Model

Choose a startup business model

Choose a startup business modelThere are a lot of startup business models out there that you can choose from. Over the years, new business models have constantly been developed; from the classic brick and mortar business model to web-only business model, they all work. There are hybrid business models too, when a brick and mortar business builds a web business too for example. All these variations are of great help in growing the startup sales channels and the market presence.

The main thing you need to think about as a startup founder is which business model to choose and implement in your organization; you need to take into consideration the business idea you have, but also your personality. Maybe your idea implies a store where to sell all kinds of products; if you like to sell personally, to discuss directly with your customers it might sound good to go with a brick and mortar business model (you can also add an online store along the way). On the other hand, if you are not exactly a “people person” maybe a better idea is an online store. You just have to weight all aspects and to find what you enjoy doing more.

Depending on the chosen business model, there are different resources you need to implement it. Some of them require a large initial capital to invest (brick and mortar businesses, factories etc), due to the cost of inventory, furniture, rent, different pieces of equipment and so on;others require more initial time to invest than money (online business), since there are no costs with furniture, special equipment. Only costs you need are for the initial inventory and maybe some warehouse. On the other hand, you would need to invest a lot of time in building the online store and then promoting it online, especially if you need to target keywords that are used by many of your competitors.

In the software world, there is a very common startup business model. More and more entrepreneurs are choosing it for their businesses. It’s the SaaS model – Software as a Service. This model has evolved from the classic “pay once, use forever” business model. We feel this is a pretty important business model that needs to be discussed in detail. That is why we will dedicate an entire article to it. Stay close because soon you will find out why this is such a popular business model (you can also apply it outside software products).

Independent of your startup business idea you can choose from a few business models, each one of those being a possible good model for your startup business. In the end, the best advice would be to try to implement a mixed business model. Try to think a few steps in the future. You want to grow your business and in this way you will reach a higher number of possible customers.

As an example, if you want to open a business that would require a brick and mortar presence but lack the big initial investment money, you could try to open an online business on a similar niche and work from there. Become an expert in that field, start making some money and slowly invest in your main business idea. It will probably take some time to reach that goal, but when you do you will realize that you ended up with having multiple income sources.

Although your business needs a startup business model from the start, it is not the only decisive factor when thinking about the success of the business. Don’t forget that you can change and adjust the chosen business model on the go.  Do it whenever you reach a point where you see that it would be better to slightly make some changes. This is in order to move forward with your business. But you will definitely need to invest time and personal dedication in order to succeed with your endeavor.