If you are currently looking at adopting a popular business model, whether it be for a new business idea or innovating or updating an existing business, a strong strategy would be to familiarise yourself with today's popular business models. Then adopt one (if possible) that will be widely adopted over the next 5 years. That way you can get ahead of your competition. Here is some useful information and a resource to get you started:
A strong, precise business model(s) can be a powerful tool for innovation, competitive advantage, decision-making, and culture development. Business models (BM) can either be explicit, written/drawn out, or implicit, unspoken/ undocumented, yet no less powerful. A business model can be a graphic, template, or text heavy document in the form of a business plan. Often businesses have more than one business model (BM). For example, a business may have one BM for each of the following:
Building and developing strategic partnerships
There are over 50 types of BM’s that most businesses fall into (Gassmann et al, 2014). Some of the most common today are:
Freemium (18) - use some of the service for free, upgrade for additional functionality;
Subscription (48) - pay a monthly fee starting at an affordable price point with the option to increase or decrease over time;
E-commerce (13)- sell products/services online;
Performance based (38) - the client pays on results.
St Gallens Business Model Navigator (Gassmann et al, 2014)
(2) Control: Research shows most entrepreneurs fear losing control of their business. Entrepreneurs have the need to control every aspect of the business. The ugly truth is no one person can be an expert at every aspect of a business. Controlling everything in a business stunts the success and growth, and makes an entrepreneurs life miserable and stressful. Identify what you are good at and outsource the rest to experts who do know.
(3) Customers come first: The ugly truth is that your customers always come first. Apart from being the source of revenue for your business, your customers provide valuable insights into your business. For example, insights show the direction your business should be taking, whether you are satisfying the needs of your customers in a way they need to be satisfied, whether you need to increase your product line/ range of services to satisfy your customers.
(4) Adaptability: Research shows that to survive as a business in today’s technology driven world, a business needs to be very adaptable to changes that are occurring every 18 months (Moore’s Law). The ugly truth is most entrepreneurs do not have the skills or the time to learn which aspects of their business can be continuously adapted to changes. This is a good aspect of the business to outsource.
(5) Plan ahead: Most of what entrepreneurs experience in their business has happened before and other businesses have found a very good way around it. The ugly truth is entrepreneurs need to keep up to date with developments in business management and technologies and to use successful companies solutions as a guide to plan ahead up to 5 years. This requires time and specific skills. If you are not an expert at future planning, or do not have time to keep up with the latest developments in business and technology, this would be a good function to outsource.
Having started various businesses over the past 35 years and studied entrepreneurship at postgraduate level, research shows there are a number of ‘ugly truths’ to entrepreneurship. In no particular order I will focus on 5.
(1) Mindset: Having a good idea, passion, and a desire to help people with your service/product is not enough for success. The ugly truth is entrepreneurs require the mindset of finding a way forward regardless of the situation,drive and determination to succeed no matter what, and persevering even when things feel hopeless no matter what.