Table of content

• Building a Winning Product
• Mastering the Art of Service Business
• Shared Resources Model
• Examples of Leasable Assets
• Opportunities to Build Billion-Dollar Ventures

What if you throw a party and nobody shows up? In business, it happens all the time. So before starting any business, you have to know some key factors.

You might have many dazzling ideas, but they don’t have any market value. Before getting into business, you should learn about the market and its current or future demands. Based on that, you take action.

I am going to reveal eight business models, which will help you to understand the market and the opportunities to build billion-dollar businesses.

• Building a Winning Product

A product is a tangible form of value. Create a single tangible item or entity, then sell and deliver it for more than what it costs. To run a product-oriented business you must:

 - Create some sort of tangible item that people want.

 - Product that item as inexpensively as possible while maintaining an acceptable level 
   of quality

 - Sell as many units as possible for as high a price as the market will bear.

 - Keep enough inventory of finished products available to fulfil orders as they 
   come in.

First, you must create a great product with a very clearly defined and large consumer market where the product resolves a real consumer issue and offers superb differentiation over its competitors. Second, the product must be well-defined across consumer, technology and business before full execution commences.

• Mastering the Art of Service Business

A service business is an enterprise composed of a professional or team of experts that deliver work or aid in completing a task for the benefit of its customers. The product a service business delivers isn’t like a product you buy at the store, such as a television, piece of clothing, or food item.

A service involves helping or assisting someone in exchange for a fee. To create value via services, you must be able to provide some type of benefit to the user.

 - Refine your business idea.

 - Create a service website.

 - Ensure that the service is provided at high quality.

 - Attract and retain paying customers.

A good example of a service business is a Barbershop. A haircut is not a product, you can’t purchase one from a shelf.

If you’re developing a service, be sure to charge enough to compensate for the time you’ll be investing daily in providing the service to your customer. Otherwise, you’ll discover that you’re working too hard for too little reward.

• Shared Business

Shared Resources are a durable asset that can be used by many people. Shared Resources allow you to create the asset once, and then charge your customers for its use. To create a successful Shared Resource, you must:

 - Create an asset people want to have access to.

 - Serve as many users as you can without affecting the quality of each user’s experience.

 - Charge enough to maintain and improve the Shared Resource over time.

There are many examples of shared businesses. Gyms and fitness clubs are a classic example of a shared resource, and co-working spaces are another example.

The tricky part about offering Shared Resources is carefully monitoring usage levels. If you don’t have enough users, you won’t be able to spread out the asset’s cost enough to cover up-front costs and ongoing maintenance. If you have too many users, overcrowding will diminish the experience so much that they’ll become frustrated, stop using the resource, and advise others not to patronize your business, diminishing your reputation.

• Subscription Model Businesses

A subscription-model business charges customers a recurring fee for access to products or services. A subscription program provides predefined benefits on an ongoing basis in exchange for a recurring fee. To create a successful subscription model you must:

    - Provide a significant value to each subscriber regularly.

    - Build a subscriber base and continually attract new subscribers to compensate for 
      attraction

    - Retain customers as long as possible. 

A successful subscription business requires a well-defined business model, a strong customer base, and the right pricing strategy. Subscription businesses are often able to generate recurring revenue, which can lead to greater profitability over time. At the core of the subscription model is the idea of regular payments. Customers pay repeatedly at set intervals, giving them continued access to a product or service. This could be weekly, monthly or yearly, providing businesses with a predictable income.

A cable or satellite television service is a great example of a subscription. After you sign up, the company will continue to provide television service as long as you make the payments. Subscription is an attractive form of value because it provides more predictable revenue. Netflix and Spotify are also examples of subscription-model businesses.

• Resale Businesses

A resale business is a business that buys products from other sources and sells them to customers at a profit. Resellers can buy products from manufacturers, wholesalers, liquidators, individual consumers, or other retailers. They can also buy products from online sites like eBay, Alibaba, and Meesho. Resale is the acquisition of an asset from a wholesale seller followed by the sale of that asset to a retail buyer at a higher price.

To provide value as a reseller, you must:

  - Purchase a product as inexpensively as possible, usually in bulk.

  - Keep the product in good condition unit sale-damaged goods can’t be sold.

 - Find the potential purchasers of the product as soon as possible to keep inventory costs low.

 - Sell the product for as a high markup as possible, preferably a multiple of the purchase
   price

Reselling is simply buying an item with the intention of selling it for a profit at a later date. Resellers can purchase wholesale stock from suppliers or buy items from other sellers. The reselling profit depends on the products that you decide to sell. Generally, the more expensive and in-demand the product is, the more profit you will make. A reseller typically makes anywhere from 20% to 50% profit on the products they sell.

• Lease Business

Leasing a business is the temporary transfer of assets such as vehicles, buildings, or industry equipment from one business to another. The lessor will deliver the assets to the lessee in return for regular lease payments under the lease agreement. A lease involves acquiring an asset, and then allowing another person to use that asset for a predefined amount of time in exchange for a fee. The asset can be pretty much anything, a car, a boat, a house, a bike, or a power tool.

To provide value via a lease, you must:

  - Acquire an asset people want to use.

  - Lease the asset to a paying customer on favourable terms.

  - Protect yourself from unexpected or adverse events, including the loss or damage of the lead 

     asset

To successfully provide value via a lease, you must ensure that the revenue from the lease covers the purchase price of the asset before it wears out or is lost. Most assets have a limited useful life, so you must charge enough to bring in more revenue than the purchase price before the asset loses its value.

These all are the six business models, according to your market study, you can pick one niche and start to build a successful business. There are many ways you can clubb each business in another which is called bundling. We can talk about that in another Blog.

Hope this blog has given some value to your life. Keep following!