No matter what size, big or small, your business is, creating a business plan is very important. The business plan will serve as a guide that outlines your goals and all the details regarding how you can reach such goals. But planning is just wishful thinking if there’s no proper execution and a solid business model in place. First off, you will need to build a solid business plan model. The model will provide you with a structured framework of all your ideas, goals, and strategies for your business. It can also serve as a tool to determine the feasibility of your business which can be used to attract investors when capital raising.
In order to develop a business plan, clarity is required what business model(s) your business will use. Hence, in this article, we are going to review several business model examples and their impact when creating a business plan model.
Business Model Examples – Your Key to Success
Business owners have it hard, facing many challenges in making their businesses grow. Planning and strategizing will need to face reality very soon when choosing a business model to implement. Every business plan model will, of course, has its advantages and disadvantages and also needs to be checked if that really will work for the type of business you are going to pursue. Nevertheless, choosing a great business model allows can create significant value for customers and turn your enterprise into a financial success.
In principle, there are many different kinds of business models to choose from. To know more of these business models, we present below a list of some of the most commonly used business models today. Included are business models examples which can turn your business plan into success:
- Subscription-based business model – This is where customers need to pay a subscription fee to gain access to the product or services. These kinds of business plan models used to be for magazines and newspapers but nowadays, this business model is used by many businesses and websites. The following are the business models examples you can refer to: Software as a Service (SaaS) Business Models and Rental Machine Business Models.
- Project-based business model – In this kind of model, this is where you work on a project and then charged for that project in a set fee. Either from big time projects like infrastructure projects, consulting firms’ projects, or web developing projects, need project-based business models. The following are the business models examples you can refer to: Consulting Business, Construction, and Mobile App Business.
- Product-based business model – This is the most commonly used business model that is in demand and popular. Every store selling physical products, such as clothing, jewelry, cars, etc. are all businesses that apply product-based business models. The following are the business models examples you can refer to: Jewelry Store and Used Car Business.
- Service-based business models – This kind of business model is the same with Product-based business models except, instead of physical products, they offer services that consumers need, such as Hotels, Restaurants, Consulting, etc. The following are the business models examples you can refer to: Hotel Business, Restaurant Business, and IT Consulting.
- Franchising – This is a business model where you can sell the right to use the business model to others in exchange for a percentage of profit. This is usually common for Restaurant or any food chain businesses, clothing stores, etc. The following are the business models examples which you can refer to: Hair / Beauty Salon Business, Robotic Kiosk Franchising, Jewelry Shop, and Quick Service Restaurant.
- Freemium – A popular business model nowadays due to the allure of offering free simple and basic services for users. But charges for more advanced and additional features at a premium. Here is a financial model template that you can use to refer what a freemium business model is like: Freemium SaaS Financial Model.
- Retailing – One of the most common business models that entrepreneurs often start with. It is a business model where a retailer purchases product from a distributor or wholesaler and then proceed to sell the said products to the market. Here are retail business model templates that you can use as a reference: Retail Store, Gas Station, and Pawnshop.
- Marketplace Model – Another popular business model which offers a platform to connect buyers and sellers. Not only is this applicable for brick and mortar businesses but also for eCommerce. Basically, the marketplace serves as a middleman between the seller and the buyer to meet, in exchange for an agreed commission rate. Providing a seller with a place to sell and look for buyers, in addition to providing a place for buyers to look for sellers/vendors/stores which sells products they want. eFinancialModels is one of the examples of a marketplace model.
- Broker Business Model – Work on buying or sell side and obtain a commission upon a successful transaction. In other words, the broker acts as the middleman that bring together the buyers and sellers in exchange for a fee if successful. An example would be the: Real Estate Brokerage Firm.
- Affiliate – The main task in this model is to refer a customer/target market to somebody else’s shops and obtaining a commission in return. This is not to be confused with a broker since the broker can work independently or employ other agents, plus, the need for brokers to have a license is critical. On the other hand, an affiliate is free to refer a customer to a shop without the need to apply for a license.
- eCommerce – this refers to a business transaction which is conducted online. In other words, it is a business model where all sales happen via the internet without a physical presence. It is one of the most successful business models that takes advantage of the internet and the convenience of having the platform online which opens up the opportunity of targeting a wider range of market. An example would be: eFinancialModels, SaaS, Mobile apps, etc.
- Dropshipping – A type of eCommerce business model where a product is sent directly from the manufacturer to the customer and the business is only securing the customer. Basically, their business is not to keep the products it sells in stock but purchases it from a third party, then shipping it directly to the customer without having to shoulder the handling fee in some cases. Amazon, eBay, and Shopify are just some of the few who made it big while using this business model.
- Rental business – As simple as it sounds, the operation for this business model is renting something to an interested market. It could be products, Mini Storage Space, Serviced Office, or renting Equipment such as Rental Machine Business.
- Manufacturing – Another common business model where it focuses on taking raw materials and produce products out of it. This also applies to companies that assemble finished products from premade parts. Basically, a business where you can spit into direct sales (e.g. Dell selling directly to customers) and indirect sales (e.g. Acer, HP sell via retailers). Here are some financial model templates for Manufacturing business models that you can use as reference: Beverage Manufacturing, Can Food Manufacturing, Manufacturing Template Bundle.
- Niche business – This kind of business models are not completely that rare but not that common either. This is due to its focus on the needs of a market niche and service it in a way with products and services that a larger business can’t. An example of this would be our website of eFinancialModels.
- Network Businesses – One of the most popular business models from all ages and for different use cases. It is a model where the value for each customer increases the more users the network has (e.g. Facebook, LinkedIn, Twitter, etc.).
Of course, the above list is just the tip of the iceberg. There are many more business model examples out there that are used and have left a footprint in their respective industries. If you have any suggestions of other business model examples that you’d like to add to this list, we welcome your comments.
Why Use Business Models Examples?
Starting a business by using a proven business model can be much easier than when trying to come up with something which is new for customers. Taking several business models as examples will educate and help you understand more about business planning and what is the best options regarding starting a business and turn it into a financial success. You want to ensure that you will focus on your goal and the path where you want your business will grow and at the same time, learn from some of the best and tested business model examples how to implement those in your business plans for the future of your business.
Last but not least, there is also an important trust aspect involved when presenting customers with a business model they already know from other businesses and are familiar with how it works.
Creating a Business Plan Model
Once you have selected your business model, you will need to create a business plan model for your specific business case. Feel also free to consider combining several of the business model examples above when creating your business plan. Your financial plan will then need to include assumptions of the key value drivers for each business model you have chosen when developing a financial plan. Another aspect is that when developing a financial plan, you can also compare which business model best maximizes profits for the company and value generated for customers. Some business models are easy to sell – as they offer a lot of value to customers – while others are harder to sell and therefore it might be more difficult to grow the business later on. For your business plan, try to evaluate all those aspects and focus on those business models which best support your financial goals.
Downloading Business Plan Model Templates
eFinancialModels is offering Business Models Examples to use as business plan model templates. Providing businessmen, entrepreneurs, and investors with easy to edit ready-made business model templates which can serve as a basis for creating a solid business plan. eFinancialModels aims to give users an easier process of building their financial plans by utilizing templates which include a clear structure and industry know-how. These templates are made by financial modeling experts with substantial experience in financial modeling and contain some of the best industry know-how available today. Hence, once you use the templates as the basis, the process of creating a financial plan becomes much easier and more professional.
Downloading an Excel Business Model template is very convenient and provides a nifty tool to better understand how the business model works. So, if you’re interested and in need of business model examples, you can take a look here at eFinancialModels for more business model examples or financial model templates as you freely choose from which industry your preferred business fits.
Most of our financial model templates are used by executives and entrepreneurs from the US, UK, Canada, Australia, Japan, Germany, France, and many more countries all over the world who are looking for ready-made financial plan templates to support them in completing their financial modeling and analysis tasks.