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Are you considering the idea of starting a business but you don’t know which model to choose? Is it necessary to make a strategic plan? The answer for both questions is…. Yes! As an entrepreneur or business leader you must define the business plan and the model you are going to follow to get to know first-hand you DNA. That is to say, you have to know what you are going to offer, what kind of clients you will have, how you are going to do it and how you are going to generate incomes.

Defining the business plan and model you are going to follow is a key to get to know the DNA of your company

So, if you don’t know what model meets your business expectations yet, in Lexington we give you, these seven examples that may be interesting you before starting up your own project:

1. Freemium

This business model offers basic services for free and charges the special or advanced ones. It has gained popularity in those companies related to Web 2.0.

2. Long tail

It is the opposite of the traditional business models: instead of offering a few products and selling many, a long tail focus on offering a wide range of products only selling relatively few, but the sum of all those little sales can be very profitable.

3. Peer to peer (P2P)

This business model is based on the exchange or sale of products or services between individuals or companies at the same level.

4. Affiliate model

In this case, the sale of a product or service is based on the recommendations from one to another, that is, the interested company offers any kind of reward for retailers, people or other companies that may attract clients to its products or services.

5. Crowdsourcing

This business model was prompted as a tool to outsource several tasks and works using massive communities of professionals of the sector. This way, better results and more solutions could be reached in less time, succeeding at increasing the saving on costs.

6. Franchise

It is a good working option for those who would like to begin its journey in the business world and to start up a company. It consists on replicating the same business in different places, letting other people or companies take advantage of its brand image, products or services always under the supervision of the business owner for royalties.

7. Subscription Model

Instead of closing a sale to commercialize a product or service, in this case, the client pays for the access to a product or service with an established frequency accorded in advance.

Freemium, Long tail, P2P, affiliate model, subscription, crowdsourcing or franchise are some of the business models that may inspire you

“The value of an idea lies in the using of it”.

 Thomas Edison


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