How To Open A Multi Service Business

Last updated: Jan 30, 2021

Are y'all looking for ideas to unlock your long-term business organisation value? If you shook your head in yes, retrieve that business model is one of the ways to streamline your business organization process.

Precisely, a business organization model is a holistic framework to define, understand, and design your unabridged business organisation in the industry. Often novice entrepreneurs do non understand the significance of the business concern models.

Bank check out fifty dissimilar types of business organization models, along with examples of companies for amend insight. Try to adopt these business models in your startup.

1. Franchise model

All-time for the company's expansion, franchising allows the franchisor to license its resource, brand name. Intellectual property and rights for a franchise to sell its products and services in exchange for a royalty.

McDonalds's is the best example, which has 93% of its franchised restaurants worldwide.

McDonald's is the leader in the global foodservice. It operates 36,059 franchised restaurants out of a total of 38,695 restaurants worldwide.
Its franchise restaurants accept increased year-on-year for the last 13 years.

Example: Subway, McDonald's , Gold's Gym

2. Multi-sided platform model

Whatever company that offers services to both sides of business concern carries out a multi-sided concern model. The perfect example is LinkedIn, which provides subscription services to people to find job opportunities likewise as to Hour managers to find candidates for their vacancies.

Case: LinkedIn , Freelancer.com

three. Greenbacks machine business concern model

Also known as the cash conversion cycle (CCC). It basically means how chop-chop a company converts cash to good and services and and then again into greenbacks. This model is used by the companies who brand low-profit margin merely survive in the market with a disruptive position. Like, Amazon generates a massive corporeality of cash from its online store earlier it pays to its suppliers. Another way to look is that Amazon runs its supply concatenation on vendor credit.

Cash Conversion Cycle: Cash ==> Product & Services ==> Cash

Example: Amazon, Alibaba, Apple tree

Pro tip: This blazon of business model is most suitable for inventory type of businesses.

4. Freemium business model

A mix of free and paid services, the freemium model is by and large used past tech companies in the Software as a Service (SaaS) or apps business organization model. To grow business and acquire customers, companies offer free (lite) versions to customers merely for a limited fourth dimension or with limited features. To unlock the upgraded features, the customer has to opt for paid services.

Examples: Zoom, Dropbox, MailChimp, Evernote etc.

Pro tip: It's an first-class way to encourage customers to try the software or application.

5. Subscription business model

This model allows the customer to get services by paying a stock-still amount every month or twelvemonth. In this example, the company has to provide enough value to its customer, and so they visit the website over and over over again.

Information technology allows companies to segment the market and offer a specific number of items in its content under different plans and prices known as tiered offerings.

For example, Netflix offers monthly subscriptions under the Basic plan for $8.99/month, Standard plan for $12.99/calendar month, and Premium plan for $15.99/month.

Examples: Netflix, LinkedIn, Amazon Prime, Dollar Shave Guild, are few of its examples.

Pro Tip: This model is useful for content or service-based websites.

6. Peer-to-peer business model

As per this model, a visitor acts equally a middleman betwixt ii private parties and create value for both demand and supply side. Information technology'due south dissimilar than a typical relationship of a business concern selling its services to consumers (B2B or B2C). It makes money through commissions. Airbnb is the correct example that allows transactions between hosts and hostees.

Case: Airbnb, Uber, eBay , Offerup, Freelancer.com,

seven. Ane-for-ane business organisation model

The one-for-one business model tin be referred to as a social entrepreneurship business model. It's a hybrid solution, a combination of both profit and not-for-profit services. Although in that location are some debates about its long-term sustainability, many companies are pivoting their concern models to cater to socially conscious millennials. The best example is TOMS Shoes that provides shoes to underprivileged children globally for every pair of shoes sold.

Examples: TOMS Shoes, Warby Parker (donated eyeglasses), Two-degree Food, Soapbox Soaps.

This model refers to a revenue generation system in which users don't accept to pay for the services offered, but the visitor still earns acquirement streams from other sources. Like, Google earns from ad money spent by businesses to bid on keywords while users don't pay for the search engine.

Examples: Google, Facebook, Instagram, Twitter

9. Razor and blade business concern model

In this model, 1 item (Razor) is sold at a depression toll while another associated particular (blade) is sold at a premium price. Information technology is also known equally a printer and cartridge business organisation model. For instance, the price of inkjet printer itself was only a one-fourth dimension expense, nonetheless, getting a new ink cartridge replaced is an ongoing expense for consumers. The model is swell if you lot have a loyal customer base and if y'all can create some sort of lock-in situation with customers.

Case: Xbox or PlayStation Video Games, HP Printers, Nespresso coffee machines, AT&T Mobile phones with 2-yr contract.

Pro tip: Use this model, if in that location is a demand for recurring auction of an associated item, which can generate a continuous period of acquirement.

10. Reverse Razor and Blade business model

The concern model is contrary to the razor blade model. Information technology implies offering low priced products to encourage customers to buy high priced items likewise.

This business organisation model uses the strategy with a former offering for the premium product and acquires more revenue from secondary items in the long term.

Example: Apple employs this business model perfectly. Apple tree'due south App Store and iTunes sell apps, movies, songs, etc. at reasonable rates but charges premium prices on its devices like iPhone, iPad, and Mac.

11. Directly sales business model

In this model, products are directly sold to the end customers either in a one-on-one conversation or small-scale gathering, retrieve Tupperware firm parties? The salesperson gets a share of every sale. Although technology has superseded the direct sales method in many means, notwithstanding many companies prefer to give a personal bear upon to its customers.

Examples: Tupperware, personal care & nutrition brands (Avon, Arbonne, and Herbalife)

12. Affiliate marketing business model

In this model, companies make money by featuring, reviewing, and recommending other visitor'southward products or services.  Call up virtually product review websites. These websites are paid based on sales opportunities that they bring to their vendor companies.

Examples: NerdWallet, Capterra, MoneySavingExpert.com, and thewirecutter.

thirteen. Consulting business model

Companies that provide consulting services by hiring experienced and qualified people and having them assigned on customer's projects follow the consulting business organisation model. These companies tend to charge on the hourly basis and/or they take a percentage share based on the successful completion of the projection (price reduction projection). Mckinsey and Boston Consulting Group are multi-billion-dollar businesses that are based on this model.

Examples: Deloitte , Mckinsey , BCG, software or website evolution firms

Pro tip: if you are a subject affair expert (SME) in a field, and when the elapsing of the project is uncertain (based on the change in client'southward requirements) then consulting business concern model is an excellent way to charge your clients.

14. Bureau-based business organisation model

This is a project-based business concern model, where an outside firm is hired to consummate a specific task. Traditionally, businesses that lack internal expertise hire agencies to get a customizable solution for their needs. Remember Mad Men? Acclaimed Netflix series that focuses on advertising bureau and their clients. Some niche agencies are digital marketing, design & architecture, survey, promotion, media, public relationship, branding, website evolution, social media, etc.

Instance: TBWA\Media Arts lab (Apple's go-to ad agency), Leo Burnett Company (United Airlines, McDonald's, Kellogg'due south are some of their notable clients)

15. User-generated content business model

Allowing users to generate quality content on websites for free to answer other users' questions and provide reviews, this business model is new nevertheless fast-growing.

This model is driven past a broad range of digital bolt, from videos to reviews, pictures, blog posts, testimonials, and any other type of content created by users of a brand. And made accessible via social media.

User-generated content is compiled and sold to companies seeking to exploit consumers' ideas and content to promote their brands.

Examples: The top examples are YouTube, Quora, Yelp, Yahoo Answers, Reddit.

16. Online educational business organization model

Targeting the educational industry, including students and teachers, this business concern model allows them to go access to educational resources via flat course fees or subscription. It tin can be said as a combination of freemium, form fees, and a subscription-based model.

Examples: Khan Academy, LinkedIn learning, Coursera, Udemy, edX, etc.

17. Instant news business model

This model focuses on sharing and updating news instantly without whatsoever intermediary.

Companies that use this model provide open and reliable channels allowing trusted primary or secondary sources to communicate breaking news or urgent announcements direct to their audience.

In the past few years, some social media platforms have emerged every bit the get-to option for instant news from primary sources similar presidents, CEOs of companies, and then on.

Instance: Twitter is the best example. Users can access the news in existent-time by checking the trending hashtags.

xviii. Multi-brand business model

This model is based on marketing more than than two products, near similar all the same competing with each other and come under a single organization but having different brand names. It is done to create economies of scale and to build an empire.

Examples: Procter & Adventure, Unilever, and Nestle are a few examples.

nineteen. E-Commerce business organisation model

A unproblematic nevertheless almost promising business model, east-commerce allows buyers and sellers to connect and transact using an online platform (online shop).

At that place are several types of e-commerce business models, including Concern to Concern (B2B), Business to Customer(B2C), Customer to Customer (C2C), and Customer to Business organization (C2B).

Example: Amazon, Alibaba, eBay, OLX, Walmart, etc.

20. Distribution based business concern model

A company that works by having one or a few central distribution channels to integrate with its final customers follows this model.

Companies that use this model provide channels for businesses to sell to customers via dealers, brokers, supermarkets, retailers, and then on.

Example: Unilever spends its major part of revenue in maintaining a proper distribution.

21. Driblet-shipping concern model

A price-effective likewise as an heady business organisation model. In drop-shipping, a concern possessor contacts many unlike suppliers/ wholesalers to sell their production on the website. One time an gild is placed on a business owner's website, wholesaler drop-ships the products directly from the manufacturer to the customer. In this case, the business owner does not accept to hold any an inventory and uses the tertiary party to manage all the aircraft and logistics needs.

Pro tip: It'due south an splendid style to kickoff a niche e-commerce business website with a express upfront toll.

Examples: Doba, Oberlo, Dropship Direct, and Wholesale 2B are few examples.

22. Enterprise concern model

Targeting and focusing only the large clients, enterprise business model is all based on getting big deals. It is built on complex sales with a good few potential clients. Like the clients of Fortune 500 usually have multi-billion dollars upkeep.

Case: Boeing, Raytheon, SpaceX, Goldman Sachs is an example of Enterprise business concern model because their sales movement is targeted towards very large concern enterprise customers or governments .

This model is based on the cardinal that companies should make profits without causing any harm to anyone, and a office of it should be spent in humanitarian works to amend human being living conditions.

Instance: Brunello Cucinelli is an Italian luxury brand that donates about 20% of its profits towards a social cause.

24. Straight-to-consumers business model

This model allows companies or brands to sell their products to concluding customers straight. Highly effective marketing campaigns and advert activities are required to retain customers.

Instance: Unilever is the best example while existence 1 of the world'south largest advertisers.

25. Family-endemic business organisation model

Any concern that is run by a family, and its controlling processes are controlled by two or more than family members is a family-owned business organization.

The leadership of the company is passed to the heir, who will hand over the reins to their children.

Examples: Ford, Walmart, Estee Lauder, Prada, Comcast are few examples.

26. Blockchain-based business organisation models

The almost advanced, futuristic, and modern technology of Blockchain has inverse the entire landscape of transactions, involving decentralized network organization on a global scale.

Using a decentralized network enhances trust and allows consumers to transact peer-to-peer. Blockchain-based businesses make a turn a profit using tokens and offer Blockchain as a service.

Many crypto-currencies like Bitcoin, Ethereum, and Litecoin use Blockchain technology-based business model.

27. Vertically integrated supply concatenation business concern model

This model is virtually owning and managing the supply chain activities (industry, distribution, and retail) for its products by the company itself. When a company has better control over how a product is produced and delivered to finish users, it tin can provide products at lower prices (with improve margin) to consumers.

On the contrary, for example, if a company only manufactures a product, and uses a distribution and retail partner. Then at every step of the supply concatenation, the additional cost is added (markup) by the fourth dimension the product reaches the stop client.

Examples: Call up almost companies having both factories and retail/online stores. Amazon, Tesla, Luxottica, Apple , Walmart, and other grocery stores.

28. Combination of chains and franchise business organisation model

This model is but a mix of operated bondage and licensed stores (franchising). Starbucks is the near famous instance that owns both company-operated stores and licensed stores.

In Starbucks' model, all 15,041 stores in the U.S. are visitor-owned, and all international stores are franchised.

29. Information licensing concern model

A concern model of 'information' has gained a new meaning in this modernistic earth, particularly in the technology sector. Data is a critical component in spider web applied science where companies require disquisitional information to comport out operations and earn revenue.

Example: Twitter sells real-fourth dimension data to its partners, which is and so used for advertising and customer insight.

30. Attention merchant business model

Attention merchants or influencer operate through advert model and brand money by grabbing the attention of their target audience.

Apple CEO Tim Cook once wrote, "When an online service is free, yous are non the client. You are the product."

Examples: Snapchat & Instagram allows brands to market themselves through advertising on their platform.

From YouTube to Tik Tok and other social media platforms, y'all can lookout videos for free, but you will exist targeted past endless adverts.

31. Discount with high-quality business model

This kind of business organisation model is usually skilful past supermarkets and departmental stores that get products in bulk and sell on the wholesale rate.

Examples: discounted products with high quality like ALDI, Tesco, Lidl, Ross Stores, and ASDA Stores.

32. Pyramid Scheme Business organization model

A pyramid scheme is a business organization model often considered illegal or controversial. The model functions on the sole primary of recruiting members by promising them a reward in the shape of payments or services if they agree to enroll others into the scheme, rather than supplying investments or auction of products.

As the recruiting circle grows with infinite speed, the actual recruitment becomes quickly impossible, which leaves member without whatsoever profit.

Instance: Amway is a billion-dollar company which has used these pyramid schemes.

33. Nickel and Dime business organization Model

This concern model consists of the lowest price strategy for the bones product or service. By keeping the basic price every bit low as possible, an additional amount is charged for the other perks and services that are offered with the main basic service.

Example: Spirit and Frontier Airlines are a budget airline that charges the everyman possible toll for the flight tickets and charges fee over boosted services like printed boarding pass fees, carry-on/ bank check-in luggage, seat preference, priority boarding, Wi-Fi, beverage, repast/snack, phone booking fees, etc.

34. Aggregator Business Model

Aggregator Business concern Model is a network model which provides commonage information nigh a particular service and sell them under their brand name.  Under this business organization model, most companies provide information and sources on a single manufacture.

Example: Companies like Zillow and Oyo for Hotels, Uber for taxi service, Yodlee for financial service, all utilize Aggregator business model.

35. API licensing Concern Model

API stands for application programming interface (API). Information technology is basically a set of subroutine definitions, communication setups, and tools for developing software. API licensing business model provides licensing protocols which allow developers' community to create third-party plugin/add-on apps for well-known platforms. And developers pay a fee to get API admission.

Case: Microsoft, Apple, LinkedIn, and Twitter, they all provide API license services.

36. Crowd Source Business Model

Crowdsource business Model facilitates companies with access to operational solutions like ideas and technologies, upgraded consumer interaction, opportunities for co-collaboration, operation optimization, and reduced costs.

Example: Companies like Wikipedia, YouTube , Kickstarter, LEGO ideas, Unilever, Coca Cola (new flavor of drink) are involved in crowdsourcing.

37. High Touch Business Model

In the loftier-affect business organisation model, customers' interaction and involvement are on the highest level to make the experience personalized. Information technology is a phenomenon in which a client gets involved in a kind of partnership with the concern. High touch is needed for larger accounts considering they pay more and are glutinous.

Example: Buying a car at Auto dealership, house, enterprise SaaS requires multiple interactions with the salesperson.

38. Low Affect Business concern Model

Low touch business model is, of course, the opposite of loftier touch on business model where the product or service is delivered past minimum customer interaction. Low touch is good for low toll software tools where acquiring customers is easier.

Example: Companies like Amazon, Zendesk, SurveyMonkey uses low touch on business organization model.

39. Flex Pricing Business Model

Flexible pricing model operates through a business organisation strategy in the last price of an item is negotiable. In curt, buyers and sellers can bargain the price to suit their purpose the best.

Example: Letgo

40. Auction-Based Business organization Models

The model is based on the biding option to buy a product or service. The model is although not very common now, information technology is still used for industries like antiques, real estate, collectibles, and the sales of businesses.

The mod version of the auction model can be witnessed on online platforms trade'due south new and used items similar eBay and Amazon

41. Reverse Auction Business Model

This business model follows a strict pattern of setting the highest prices and let the buyers bid accordingly until the prices beginning to drib.

A opposite auction is popularly used by businesses seeking suppliers. Eligible suppliers bid lower and lower at each subsequent round to entice the business and win the contract.

Case: Bidding for authorities contracts

42. Brokerage Business Model

Brokerage concern model provides a unmarried platform to buyers and sellers for communicating the deals. It charges a fee for any transaction between the parties either from the buyer or the seller depending on the featured category.

Instance: Expedia, Century 21

43. Bundling Business Model

Bundling is a business strategy that combines products or services to offering a packet gathered as a single combined unit to sell at a comparatively low price. It is the form of user-friendly purchasing for several products and services from a single business unit.

Example: Microsoft Office 365 (PowerPoint, Excel, Discussion, OneNote, Outlook) Value meal at Burger King or McDonald's, Printer and ink

Disintermediation Model removes the capacity of outsourcing or a third-party intermediary. In fact, the organizations following this model deal with the clients and customers directly via dissimilar aqueduct like the internet.

Example: Dell, Tesla are good examples of companies which follows disintermediation model.

45. Fractionalization business organisation model

Fractionalization model is selling a product or service for fractional usage or divide parts. It's a strategy which divides products and services into farther subcategories to introduce diverseness in the products, charging for each category separately.

Case: You tin can sell a pizza past the box or private slices of different varieties( cheese/ pepperoni)

Fractionalization business model

46. Pay as Go (Utility) Business Model

The business organisation model charges every bit per the usage of the product or service.

In recent years, the Pay-As-Yous-Go model has been adopted past governments and organizations to distribute common goods similar solar panels to rural communities, which they pay for gradually over a long menstruation.

Instance: This model includes electricity, water, and cell phone companies and Amazon Web Services

47. Product as a service

Product as a service means to sell the service of a production rather than selling the bodily product.

Example: Zipcar, Fedex Printing service follows the product as a service concern model.

48. Standardization business concern model

Standardization ways to make a service universal, which was once a customized one. This attracts customers due to convenience and low prices.

Case: MinuteClinics (a subsidiary of CVS health) is a skilful example of Standardization.

49. User Base Communities

User base communities earn by developing an interactive platform where users communicate on their own with each other and can advertise at the same time. The model generates revenue with both subscription and advertising fee.

Example: Craigslist, Angie's listing

50. Leasing business model

Leasing refers to renting big or loftier-profile items similar machines and electronic equipment instead of them selling information technology.

Example: Home Depot (Tool rental) MachineryLink, Hertz, Enterprise, etc. have adopted a similar business organization model.

In addition to the business organization models mentioned above, at that place are many others. While these are about commonly used past companies today, you need to wisely and smartly choose 1 or combination for your business.

Tell us what you remember? Did you find this article interesting?
Share your thoughts and experiences in the comments section beneath.

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Source: https://bstrategyhub.com/50-types-of-business-models-the-best-examples-of-companies-using-it/

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