Unique Business Models Behind The Success of Top Entrepreneurs
Have you been scratching your head to streamline your business value?
Well, if yes then remember that identifying and applying the right business model can provide a holistic framework to your business.
No matter whether you are leading a small or a big startup, you need a business model to define if your business idea is viable or not.
Over the last few years, I have observed that many startups test and experiment with different models to analyze their cost and revenue streams.
Still many failed to grow their business and measure their progress and craft their strategies accordingly.
That’s why I have mentioned this advice from top entrepreneurs and 5 business models that will drive your company to success.
Advice from Top Entrepreneurs
1. Gelare Danaie (President of dexd )
Dexd is one of the largest design companies. As a senior leader Gelare Danaie was aiming to shape the future of cities, public infrastructures, and transportation.
She was able to witness huge profits by approaching clients.
Gelare Danaie quoted-
“They need to work on different tasks and projects at the same time, and the reality is the business model of consulting business has no luxury for design thinking and co-creation. The outcome is projected to miss one crucial ingredient: innovation.”
So, she was determined to work on uniqueness when she launched her design firm.
Initially, she hired professionals from many different disciplines along with architects and designers.
She mainly focussed on strategists, wayfinders, experts, and researchers to her team.
The motive of the team was to approach new projects with design workshops. This allowed every other party to contribute.
She never wanted to use that traditional consulting model. Therefore she focussed on creativity, not just the shareholder profit.
2. Amelia Kruse (Leadership Coach)
Amelia Kruse started her coaching practice. She always knew that this is going to be the core for the rest of her career.
Do you know she always wanted a sustainable business model that can work in every situation?
She was very much enthusiastic and never wanted to work on a business model that will just work on the present scenario.
Amelia Kruse quoted-
“I was thinking less about building a traditional business model and more about building the foundations of a life for myself. I thought a great deal about what my values were, what drove me as a coach and a person, and what meaning and purpose a coaching practice held for me.”
So, she first thought for a philosophical foundation and then placed a budget for logistics and launching the business.
In her business model, she focussed on the kind of people she wanted to work with.
“A great perk of this is that as you evolve as an entrepreneur, you can also evolve aspects of your model since the foundation of your business is unshakeable.”
3. Marta Subko (Founder of subko)
Subko was the second company of Marta Subko that aimed to provide business and marketing solutions.
Marta was in debt after her first startup failed due to the cofounder’s disagreements.
The idea of Subko was much influenced by her first startup.
Marta Subko quoted-
“After this learning experience, it was clear to me that my next business would have the following criteria: quickly generate money to pay off debts; be able to run without any funding; allow me to have total ownership and responsibility for the projects. On top of these things, I needed something that would lift me after feeling incredibly burnt out.”
At that time there was a need for a marketing agency in the French market.
So, first, she figured out that there are no other Francophonic agencies nearby her place.
Marta believes that working as a marketing agency is not a new business model.
It’s just that you need to be curious, innovative, and find a particular niche market that will differentiate you from others.
4. Elana Reinholtz (Bird and Stone CEO and Founder )
Bird and Stone is a jewelry brand that serves directly to customers.
The uniqueness in her business model was giving away the portion of proceeds to nonprofits.
Moreover, she always wanted to start with a movement to revolutionize, instead of just creating beautiful ornaments.
But during the early days of funding, she got lukewarm feedback from investors.
One of the investors told her that merging commerce and philanthropy could never work.
Then she started by self-funding (bootstrapping).
“If I had listened to him, we wouldn’t be where we are today. Having donated over $100,000 to our impact partners across causes like women’s health, girls’ education, and fighting climate change.”
So, just stick to your aim and don’t convince yourself if you feel that would not work in your case.
If you are starting a company for the first time, people will guide you.
If you think their advice will not work so just ignore them and work the way you wanted.
5. Kristiana Tarnuzzer (Founder of thecausebar)
The Cause Bar started with a movement to bring a change in philanthropy for a new generation of citizen leaders.
Kristiana Tarnuzzer was a philanthropist and she got some suggestions from her network to bring a culture of philanthropy.
The business model was based on building an online platform that provides simple and meaningful ways to lead a cause-focused life.
Kristiana Tarnuzzer quoted-
“I identified a real need and opportunity to unleash the good in those that wanted to be of service more often, but were seeking clarity and motivation on how to do so.”
So, she planned on launching her business to the next level. Philanthropists were able to highly impact by providing personalized plans.
6. Lourdu Mary (Franchise owner of My Apple School)
When Lourdu Mary got retired from the teaching profession, she always wanted to start her school.
With her vast experience, she never wanted to sit at home but the organizational and administrative technicalities were hindering her way.
She bought a franchise of My Apple School by self-financing. The company provided support, curriculum, and training to her staff.
Lourdu Mary quoted-
“But as I was very keen to start something, I started looking around for options that could help me. Buying the franchise of a pre-school chain was the best one.”
So, it’s all about working on a good idea and then starting and turning it into a venture.
Business Models To Follow
1. Supply Chain Business Model
This model helps in monitoring supply chain activities such as distribution, retail, and manufacture.
You can have better control over producing your product and delivering it to the end-user by yourself.
This model helps in providing products at lower prices to customers.
But if you manufacture a product and use a distribution channel then you will have to bear the additional cost at every step.
And this process will continue until your product reaches your customer.
This model was adopted by Amazon, Walmart, Apple, and other grocery stores.
2. Crowdsourcing Models
These models are often used with advertising models. In this model, a group of people contributed content for the website of a company.
For example, if you have a designing website. Many other designers are designing t-shirts and you give them a percentage of profit upon sale
This model is widely used by companies that are trying to solve a problem through an open platform.
If they find the solution then they give incentives or rewards and grow their company further.
Youtube and P&G connect used this model to grow their business.
3. On-Demand Business Model
This model is based on the demand of the consumers. The main objective is to provide products or services to consumers safely in less time.
Many companies are using mobile applications to increase their outreach to customers.
The users request the services in the apps. Then these requests are catered by companies by delivering their goods and services.
These companies are hiring local workers or outsource their delivery services to other companies.
For instance, SpotHero provides parking on demand based on the location of customers in the city.
Also, Glamsquad provides on-demand services for the beauty industry.
4. Blockchain Business Model
Blockchain is a ledger that relies on cryptocurrency. This manages transactions, exchanges between people, and interactions with the help of a technology called a blockchain.
With that revolution, bitcoin became famous worldwide. Since its launch blockchain protocols have been evolving.
Steemit uses a blockchain-based business model. This is a social networking platform that is challenging the Facebook Business model.
Steemit uses a blockchain protocol known as Steem.
5. Ad-Supported Business Model
This model is based on providing free services by providing ads. Spotify is working on this model in which it runs ads on its free version.
So, in this way they are not dependent on their premium users to support their free versions.
The ad-supported version supports 10% of its revenue.
But as the ad-supported model scales, it generates threats to the scalability of business models. The licensing cost for the streamed content increases instantly.
Then the company will have to pay for more royalties.
Many startups just copy and paste business models.
Instead, every startup should test the feasibility of their idea by implementing strategies.
Business modeling is a journey that never ends. Every company needs to transform its business model and make it more sustainable for the next stage of growth.
Just remember you don’t need to reinvent a new business model if you are just starting your company.
You can innovate your idea with the above mentioned existing models and grow your business to success.