On this blog, we often cover startups, small or solo businesses that use business modeling, and how to get clear about the kind of business models.
A business model is just a way to capture value. There isn’t a right or wrong business modeling, but instead finding the proper business model is a matter of experimentation, tinkering, and tweaking.
That is why startups and small businesses don’t need grandiose plans but just simple tools to assess in a single page how to act.
That is also why tools like business model canvas, lean startup canvas, and value proposition canvas help entrepreneurs get clear about their business models, unique differentiator, and value proposition.
I argue that looking and finding a business model is almost like a quest for meaning.
In fact, just like a human being doesn’t find happiness in life until she’s not able to define a meaningful way to live.
So businesses won’t be able to capture value in the long run if they don’t find their proper business models.
Many entrepreneurs believe that business modeling is about monetization. While finding a business model is also about the revenue model chosen by the entrepreneur that is just a build block.
In fact, tools like business models canvas have several building blocks that are critical to have a holistic assessment of any business.
In this specific session we’re looking at 53 business model examples:
- A mix of chain and franchise business model
- Ad-supported (subsidized) business model
- Affiliate business model
- Aggregator business model
- Agency-based business model
- Asymmetric business models
- Attention merchant business model
- Barbell business model
- Bidding multi-brand platform model
- Blitzscaler-mode business model
- Blockchain-based business models
- Bundler model
- Cash conversion cycle or cash machine model
- Discount business model focusing on high quality
- Distribution based business model
- Direct-to-consumers business model
- Direct sales business model
- E-commerce marketplace business model
- Educational niche business model
- Family-owned integrated business model
- Feeding model
- Freemium model (freemium as a growth tool)
- Freeterprise model
- Gatekeeper model
- Heavy-franchised business model
- Humanist enterprise business model
- Enterprise business model built on complex sales
- Lock-in business model
- Instant news business model
- Management consulting business model
- Market-maker model
- Multi-brand business model
- Multi-business model
- Multi-sided platform business model
- Multimodal business model
- Multi-product (Octopus) business model
- On-demand subscription-based business model
- One-for-one business model
- Open-Source Business Model
- Peer-to-peer business model
- Platform-agnostic model
- Platform business model
- Privacy as an innovative business model
- Razor and blade revenue model
- Self-serving model
- Space-as-a-service model
- Subscription-based business model
- Surfer model: reverse-engineering the gatekeeper
- Three-sided marketplace model
- User-generated content business model
- User-generated AI-amplified model
- Unbundler model
- Vertically integrated business model
There are a few things to keep in mind about a business model.
Business models are dynamic
Many have the impression that a business model is something static, that doesn’t change. However, business models do vary.
In fact, for small businesses and startups in most cases finding the proper business model is a quest.
And even when they find it, they need to keep tweaking it to allow a growth sustained by the value creation for several players.
Take Amazon, when it started it only sold books. Today Amazon sells pretty much anything.
While the value proposition hasn’t changed much. Its business model is changing a lot. In fact, Amazon is willing to win the golden globe to sell more shoes.
“Business-market fit” isn’t a short-term game
Finding the proper business model is even harder than achieving product-market fit.
In fact, you might have a product or service that finally has a market. But if that product or service sits on top of a business model that is not sustainable, it doesn’t matter how much tinkering you do. Eventually, your business will fail.
Once you find the proper business model, you’re fine for a long time
When Google switched to become an advertising company its growth in revenues was exponential.
In a few years, it took over the online advertising industry. The same happened with Facebook.
Finding a business model that unlocks value means winning the lottery ticket as for a long time the company will keep producing a stream of revenues that guarantees profitability and cash flows that can be invested in another part of the business.
A business model is also about you as the founder
Unless you run a large corporation or a startup that take outside investments finding a business model isn’t just about growing.
Instead, that is about what kind of business model would fit you best as a person. What would make you happier? What would unleash your creativity? What would give you more freedom?
In short, it is as much about unlocking intangible values rather than money.
Have you found your business model yet? Let us know!
Handpicked business models:
- What Is a Business Model? 30 Successful Types of Business Models You Need to Know
- How Does PayPal Make Money? The PayPal Mafia Business Model Explained
- How Does WhatsApp Make Money? WhatsApp Business Model Explained
- How Does Google Make Money? It’s Not Just Advertising!
- How Does Facebook Make Money? Facebook Hidden Revenue Business Model Explained
- Marketing vs. Sales: How to Use Sales Processes to Grow Your Business
- The Google of China: Baidu Business Model In A Nutshell
- Accenture Business Model In A Nutshell
- Salesforce: The Multi-Billion Dollar Subscription-Based CRM
- How Does Twitter Make Money? Twitter Business Model In A Nutshell
- How Does DuckDuckGo Make Money? DuckDuckGo Business Model Explained
- How Amazon Makes Money: Amazon Business Model in a Nutshell
- How Does Netflix Make Money? Netflix Business Model Explained