There are many steps involved in establishing a company. After getting the idea and validating your project, it is necessary to create a business plan. In this document, it is necessary to explain its ambitions in order to realize them. It not only has to describe its business strategy and legal form, but it must also describe its business model. The latter is an essential element that will allow the initial idea of \u200b\u200bthe entrepreneur to see the light of day.
The business model, also called the economic model, has been used for many years to launch an entrepreneurial project. It makes it possible to concretely draw the financial structure of the company taking into account the various services or products necessary for its creation. It contains the market studies needed to assess demand and know the sector in which we are developing, the entries but also the exits of funds.
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The democratization of entrepreneurship access, ease of starting, social media and other recent developments have made it possible to multiply new business models. Although it is not always easy to pick one, some are doing well online in 2021.
Market, is still very popular
Several years ago, the markets were booming. This term includes both C2C, which is approved in the Airbnb marketplace, as well as B2B and B2C. In France or the United States, this business model has already enabled many companies to achieve success and develop rapidly.
Among them, ManoMano, who has revolutionized the distribution of DIY and gardening items on the Internet. Its business model, which relies on connecting buyers and sellers, has enabled it to become the third French e-commerce merchant after Amazon and Leroy Merlin. The market model allows ManoMano to work side by side with its dealers, and also have access to thousands of referenced products. Gradually, it was able to expand internationally, but also managed to manage four fundraisers.
Freemium model is adopted in all sectors
In recent years, a new economic model has emerged: freemium. This business model consists of offering a part of a product or service for free and charging for premium features. Deezer, Buffer, Mailchimp… These companies were quickly able to sell additional features to their customers who used their free service.
Over the years, this business model has enabled them to become standards in their own sectors. This is also the case for Spotify, which has also adopted this economic model. The music streaming platform has managed to attract more and more premium subscribers. She now has over 165 million, a number that is still rising, and so does her income.
Pre-order tempts startups
When launched, companies producing goods must face many challenges, including pre-sale production. Therefore it is necessary to have funds for storage. The danger then is to overproduce the products, without testing the market. For these reasons, many of them are now choosing to pre-order. In fact, they do not start producing a product until after the customer’s purchase is completed. The advantage of getting paid before production is that little money is needed to get started.
This business model has been largely democratized with the advent of funding platforms such as Ulule. It is increasingly shared on social networks, which gives it great visibility. This is how the Asphalte clothing brand has achieved great success. After its first project failed, the company revised its business model and opted for pre-order. Her on-demand model allowed her to sell 42,000 T-shirts during her first crowdfunding presale.
Tips, an open door to the creative economy
Tips are highly valued by content creators as it ensures that they get a steady income by setting their rewards on their audience, not on ads or sponsors. Today, tips are an economic model that exists in many sectors, helped by the emergence of platforms such as Tipee, specialized in crowdfunding or Substack, which allow newsletter creators to monetize their content thanks to its tool.
Recently, advice has also extended to the field of photography and videography with the arrival of OnlyFans. A paid formula that appealed to athletes, influencers, and sex workers alike. Created in 2016, the platform now has 130 million users and 2 million content creators, proof that the tips economy is a thriving business model for content creators.
Mediation changes consumption patterns
When starting a business, it is not always easy to find clients. For this reason, many startups have developed around brokerage. Concretely, these are the platforms that connect buyers and suppliers of products or services who are paid through a commission.
When you want to sell an item of clothing, it’s now common to do so on Vinted, Vestiaire Collective, or Grailed. For car sharing, many travelers instinctively turn to BlaBlaCar. Based on the increase in internet usage, these two companies have dramatically changed our consumption patterns. For good reason, they facilitate communication between clients or professionals and thus allow them to find what they are looking for more quickly.
SAAS for software vendors
For its part, SAAS (Software as a Service) is a very specific model that is ingrained in B2B. To finance its activities, the company provides software through a subscription system. To save money, many companies have considered using SAAS. To meet this strong demand, software publishers are increasingly turning to this business model. Several of them have benefited from its emergence, such as Content Square, which specializes in improving the digital experience, and Aircall, an expert in cloud-based business telephony solutions.
Finally, although there are many business models out there, it is important to choose the one that best fits your project. The efficiency of the economic model will determine the potential and speed of growth of activity.