Anyone can start a venture these days, especially in the internet domain. The surge of e-commerce and other digital-based business is up for huge furore.
Governments all over the world are making efforts to ease entrepreneurs and others to start profitable ventures. It leads to the attraction of foreign investments and good earnings in foreign currency.
The ecosystem for any start-up is very liberal and conducive to this 21st century.
People are aware of the pros and cons of starting a venture and still gain much-needed support, infrastructure, and funds.
However, any person wanting to start any venture, how so ever the idea may be profitable should only do so after ascertaining its business model.
What is a Business Model?
A business model creates and differentiates the manner a business conducts its affairs and earns money.
In this some relevant questions like:
How business makes money?
How is the value delivered?
What is the type of structure?
How will cost and revenue streams be created?
How will it make, sell, gain??
What is the value proposition?
What is the rationale for such a value proposition?
What would be the source of funds?
What is the scope of innovation??
Which manner the venture earns earnings and the intervals??
All these questions can have the answer with a business model that the entrepreneur chooses to start with.
Sometimes the entrepreneur starting a venture may find it very difficult to proceed with the operations of the enterprise due to lack of funds.
Much cash flow is necessary to fulfil many aspects of a venture. Besides, it might happen that the entrepreneur may already be having debts to be repaid along with CCJ. This aspect creates a huge hurdle for him to gain significant funds.
Nevertheless, he need not worry as loans for CCJ with no guarantor is available for any funding lack.
Many online financers are lending their helping hands to provide various loan products even to people with low credit scores.
The lenders do not charge any upfront fees as well as do not seek any co-signor to guarantee the timely repayment of the loans.
Types of Business Models
Below mentioned are some of the most popular business models that anyone can start a venture with:
ADVERTISING
Advertising is one of the easiest ways of earning some revenue. Not much investment or working capital is required.
- Ability to leverage various social media channels,
- Creation of best contents
- Ascertaining the time and way of displaying stuff
- Knowing the required audience
- Brand marketing
All these can lead to good earnings to anyone.
Uniquely this digital age enables advertisement and promotional campaigns most cost-effectively and conveniently.
AFFILIATE
It is another business model that anyone can exploit.
All one requires is networking ability, business contacts, and laptop, fast speed internet connection. Moreover, ho, your venture has taken off.
In the affiliate type of model, a person connects to an e-commerce player selling goods and services.
The person spreads the word of these sales through the digital medium of various websites. He has to post a webpage link on a website that would connect to a merchant’s website. The merchant completes the rest of the sales transaction.
Links embeds in contents of the website, and once anyone clicks to it, it redirects to the merchant’s website.
The sale transaction takes place, and the person gets a commission for each such sale made through him.
CROWDSOURCING
It is a very modern method of doing business.
When an entrepreneur is unable to handle any aspect of his venture, then the help of the public is into consideration. He will submit the query or outsource the functionality to be done by the experts in that domain area.
For this, he pays the right incentives and rewards.
This process uses a collaborative work model monetizing various types of ideas for the welfare of all.
PAY AS YOU GO
This is the most cost-saving business model as it requires nil holding of any inventory. In this, the company only delivers those products and services which are in high demand all time. It does not waste time in creating something that it does not feel will sell well.
Like people only subscribing to those television channels that they want to see. Not all the channels that come along with the whole package, as in the old days.
Very new and low investment and risk zone is this model used by many telecommunications and home utility companies.
FREEMIUM
It is a unique value proposition model. In this, the initial investments are made to produce goods and services to the public free. Then charges are only made for its advanced feature or version.
Any premium version of the venture is made chargeable and not its basic version. This idea is because many business models are emerging highly complicated and risky.
Therefore, to make it a profitable proposition, start-ups give unlimited use of its basic features free. After a while, the venture gains momentum. Then the rest advanced functionality earns revenue.