One of the most important parts of starting a business is planning. As tedious as it may be, you  middle east mobile number list must dedicate enough time to defining the product or service you will offer, who your customers will be, and how you will generate income. That’s right, before designing strategies, you must choose the right business model and incorporate it into your research. The first step is difficult, but don’t worry, because in this article, you’ll discover the most commonly used types of business models .

What is a business model?

A very common mistake among entrepreneurs, especially beginners, is not having clear priorities.  it’s great to see free platforms like Many often struggle with the first steps they should take and end up focusing only on the aspects they consider urgent.

The business model is nothing more and nothing less than the value proposition that the company will offer to the market and its customers. It is the structure that explains the viability of a company, how it operates, and how it will generate profits and benefits. In other words, it is the way it will generate income .

Why is it important?

Choosing or defining a business model means knowing your company’s DNA , how it works, what its weaknesses are, etc. It’s everything you need to think about and plan before launching your product on the market.

Imagine you’re an architect and you’re going to build a house. You already have the land, but you need to know who will live there, what materials you’ll use, what the client’s needs are, etc. Building a home for a family of several members isn’t the same as building a home for a newlywed couple. Think of it as the foundation of a business.

In conclusion, the business model is the step prior to the business plan , and to develop it correctly, you must primarily answer the following questions:

• Who? The customers or target market.

• What? The value and solutions that the product or service offers.

• How? How you’ll sell the product and how you’ll make a profit.

What are the most commonly used types of business models?

Now that you know what a business model is, it’s time to explore the different types available. Each one fits  cuba business directory different industries; choose the one that best suits your needs.

Below we present the most commonly used types of business models:

Subscription

Companies use this business model to charge customers a recurring fee in exchange for a product or service. This can be applied to traditional or online businesses. Some examples of this model include newspapers, streaming platforms like Netflix, and Adobe Creative Cloud software licenses.

Franchise

This is probably the model we’re most familiar with. The owner grants a third party the rights to exploit their brand, while the third party pays them certain fees or royalties . Many entrepreneurs tend to opt for franchising because it’s an already successful concept, customers are already familiar with the brand, and the investment risk is lower.