4 Top Business Models For Your New Start-Up

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4 Top Business Models For Your New Start-Up

4 Top Business Models For Your New Start-Up

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Dr Thommie Burger is the Founder of JTB Consulting


Whenever meeting new or existing entrepreneurs, you are bound to hear the term ‘Business Models’ somewhere in the conversation. But just what are business models? Which ones work best and why? How do you know if your start-up business has the right one? A business model explains which customer need or want your start-up chooses to fulfil; why your solution works better than competing ones and what your potential customers will be willing to pay for such a solution. Defining your business model is how you:

  • Identify your market
  • Define and differentiate your solutions
  • Get and keep customers, creating value for them
  • How you get to market through promotion and distribution
  • How you define what’s to be done
  • The way you will set up your resources
  • How you’re going to do all this at a profit.


Read More: Your Business Model and 15 Unique and Proven Examples for your Startup


“Stop trying to find the formula that will instantly make your idea into a winner. Instead of being scientists, the best marketers are artists. They realise that whatever is being sold is being purchased because it creates an emotional want, not because it fills a simple need.” Seth Godin


Following are some of the Top Business Models you can consider:

#1 Home-based Business Models

Less risk and lower start-up costs – allow you to test the entrepreneurial waters without having to spend money on assets, employees and other initial expenses. Easily scalable, you can make your home-based business as big or small as you’d like to suit existing commitments, such as parenthood and a day job. Outsourcing is a great strategy to keep things simple at home. You can contract with other companies to do your public relations, warehousing, shipping, website management, and even manufacturing.

#2 Brick-and-mortar Business Models

Gives you an opportunity to work face-to-face with people. A physical location may attract walk-in traffic to supplement traffic you gain through your marketing efforts, depending on your type of business. Gives you a dedicated space to go to work each day and become mentally and physically immersed in running your business. Higher risk and start-up costs. If your concept is retail-oriented, you must acquire inventory to merchandise your store.


“The best start-ups generally come from somebody needing to scratch an itch.” Michael Arrington, TechCrunch Founder and Co-editor


#3 E-Commerce Business Models

As with a home-based business, this is a lower risk, lower-cost business to start. You don’t necessarily need lots of personnel, inventory and facilities. You can choose to do it full-time or part-time.
Easily scalable – you can make your e-commerce business as big or small as you’d like to suit existing commitments, such as parenthood and a day job. You can tap into a national, or even global, customer base through the internet.


Read More: 7 Valuable Reasons to Hire a Business Plan Company


#4 Other Business Models

Lead Generation business models are those where a company uses the web, or some other mechanism, to generate a large number of leads, and sells them at a higher price. Direct Sales business models use sales personnel and are one of the most expensive ways to pursue customer acquisition. Research shows that for every five salespeople hired, typically between one and two of them fail, and never get close to reaching the quota. Unfortunately because of the long orientation and training of sales personnel, it typically takes six to nine months to detect which individuals will fail and to terminate them. Recurring Revenue or Annuity Income business models can be highly predictable over time as you have a better idea of the revenue you will receive and thus reduces the stress of having no revenue. Think of consultants that charge a monthly retainer to a client, or a gym charging a monthly membership fee.


“The goal of business then should not be to simply sell to anyone who wants what you have, but rather to find people who believe what you believe.” Simon Sinek

Business ModelBusiness Models

Established in 2006, we have successfully written hundreds of bankable and world-class Business Plans for clients across 25 countries. As South Africa’s Leading Business Plan Company, we are confident that we would be able to assist you too. Kindly note that we also offer “Investor Pitch Decks”, “Excel-based Financial Models”, and “Proposal/Tender Writing Services” in addition to our Custom Business Plan Writing Service. Please visit our Services page for more information.

We look forward to being of service to you. Please feel free to contact our Founder, Dr Thommie Burger, on +27 79 300 8984 should you have any questions. He is also available via email and LinkedIn.

JTB – Your Business Planning Partner.

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