Types of business models that are ever emerging

Types of business models

When we start out our new business journey, we build an avenue that defines our goals, needs, benefits, and objectives of doing a specific business. This initial framework helps us to figure out the exact plan and how to match our expectations with the real scenario. 

Moving in the same direction the business model limelight the core strategies of the business. That includes what products or services need to be delivered to the customers, who would be our target audiences, at what cost we will be getting our raw material and the ideal price to be charged from the users. 

You have read a few elements of the business model above but you would be surprised to know that there are hundreds of business models that are followed by millions of businesses. 

And in this article, we will be showcasing the types of business models that are ever emerging and more profitable. These types will be sneaked with business model examples for better clarity. 

Choosing a profitable business model 

This is the first question that strikes one's mind who has thought of beginning a business but is not sure about the ideal model. Well, the answer is directly hidden inside the elements of the business model only. 

The elements include market opportunity, target audience, need for products or services that you are providing, competition in the market, and the revenue model.

Now, studying these elements you can easily select a business model that is beneficial for you.

1. Market opportunities 

Now before commencing your business in a specific domain, you need to focus that whether the market favors your business type. Because business is not for a short tenure but is build for generations. Making a mismatch between the market opportunities and the business may lead to immense troubles. 

2. Target audience

Prior to building a business model you need to be clear with the audience you are targeting for your products or services. As all the people are not of direct value to our business. And having a target audience direct the business to tailor the needs of only those customers who are building demand for our products or services. 

3. Competition in the market

Before entering a particular domain one needs to study the competition that is readily available or the players who are active in that field with great market share. As ignoring them may not build your business reach as per your expectations. 

4. Revenue model

The revenue model simply means the mode of income generation for the business. One needs to study the sources of revenue for its business and seek multiple ways of making earnings from a single entity.

Now, let us move to our main theme and study the types of business models.

Types of business models 

Given below are the types of business models that are ever emerging and profitable for running different business operations: 

1. Brick and mortar  

This is one of the common names that you might have heard if you are associated with the business world. Brick and mortar refer to the businesses that are present at our physical locations. It includes stores, factories, malls, and outlets that exist in every corner of the city.

This is one of the evergreen business model avenues that is opted heavily. Also, both sellers & customers believe that nothing can beat the great engagement experience of personalized shopping. The customers can inspect the products and buy it instantly if it matches their needs.

One of the brick and mortar business model examples includes having a grocery store in your locality. That store is present physically and serves the customers by availing immediate goods. Also, making an in-person seller and buyer's engagement. 

2. Franchise model 

The franchise model was originated to expand the business reach and operations. And this is one of the easy-to-go business model types that provide assistance and brand value to the franchise holder. The holder can sell the products or services in the name of the company and operate in the same way as the original company runs.

The main benefit of the franchise model is that one can own the well-established business independently and reduce the level of risk that is associated in build a new company. 

Example: Amul is one of the famous companies serving milk and packed milk products. It provides the opportunity to build an outlet on its name through the mode of its franchise model.  

3.  E-commerce model 

E-commerce is the new buzz in the world of business as more and more businesses are building their presence online. Also, new businesses are reaching out to the audience through the internet. The additional advantage of e-commerce is that unlike brick and mortar it does not require a businessman to acquire a physical space. One can operate the business operations online. 

There are different modes of e-commerce business operations. One can choose any of the types of business models under e-commerce such as B2B, B2C, C2C, C2B, etc. Example: Myntra is one of the leading fashion businesses working on an e-commerce business model. Providing a convenient buying feature to direct consumers by listing varied branded products under its online platform.

4. Subscription model 

This is the new emerging business type that is getting accepted by the customers widely. It works as a right fit for both online or offline businesses. The subscription model allows the customers to pay the amount for the products or services at a regular interval. That can be monthly, quarterly, bi-annually, or annually depending on the type of services acquired.

This simply attracts the customers who are willing to opt for a service but are not convinced at paying the entire amount in one go. There are thousands of businesses that have accepted this model and believe that using this helps in more customer engagement.

Example: There are various ott platforms that are dominating the media entertainment industry and all of them are based on a subscription model.

Take away

From the article above we derived the types of business models that are ever emerging. And the added types include brick and mortar model, franchise model, e-commerce model, and subscription. We focused on these business models because of their wide acceptance and growth.

Along with different genres, we tried to make the concept easy by connecting different business model examples. 

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