How to Find the Right Business Model
Business models are fundamental in all types of businesses. This should be the best fit for your business. In order to know what might fit in your business, you have to ask yourself some questions that answer what you are good at and what things you enjoy doing.
It is important to answer those questions and allow yourself to capitalize on your strengths when choosing the right business model. Also, as a business owner, you must be flexible in making adjustments to your business model to adapt to an ever-changing world.
In today’s podcast episode, Annette will teach us about the different types of business models that are available to small businesses and which might fit you. It is also best that you conduct your own research to find out the perfect business model for you.
Stay tuned, learn more, and achieve success!
Highlights of this episode:
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Subscribe To The Financial and Lifestyle Freedom for UK Business Owners Podcast
Welcome and thanks for tuning in to the Financial and Lifestyle Freedom Podcast. In this episode, I'm going to show you how to find the right business model for your small business. My name is Annette Ferguson and I am CEO of Annette and Co, a UK based accounting firm. I am also a chartered accountant and certified Profit First professional. And I'm going to teach you today about the different types of business models that there are available to small businesses and which one might be the best fit for you. So stay tuned. And if you have not already, please do remember to subscribe to this podcast in whichever podcast player you happen to be listening in.
Why it is important to choose a business model that fits you
So when starting a business, it's important to choose a business model that will allow you to capitalize on your strengths. What are you good at? What do you enjoy doing? Answering these questions can help you zero in on the right business model for your small business. For example, if you're good at marketing and enjoy working with people, you might want to consider starting a consulting firm. On the other hand, if you're more interested in the product development process, manufacturing might be a better option. Whatever your strengths, maybe there's likely a business model that will allow you to leverage them. When starting a small business, be sure to take some time to figure out what you're good at, so you can choose a model that will set you up for success. So research and choose the business model that you think will work out best for you.
Business models to choose from
1. Selling products that you create yourself
I'm going to go through now a variety of business models, and you can see which one might work best. First of all, selling products that you create yourself. There are many different ways to sell products that you create yourself. One option is that it sell through a bricks and mortar store. This can be either on your own physical premises or on an online storefront. Another option is to sell through a third party retailer, such as a department store, or an online marketplace like Etsy. Finally, you can also sell directly to consumers through methods such as home parties or pop-up shops. Each of these methods has its own benefits and drawbacks, so it's important to choose the option that fits your needs the best. Selling products that you create yourself can be a great way to earn extra income and build a successful business. With a little creativity and some hard work, you can turn your hobby into a profitable venture.
2. Selling products sourced out from other businesses
And secondly, selling products that you source from other businesses. You have the opportunity to source products from other businesses and sell them in your online or bricks and mortar store. This can be a great way to expand your product selection and give your customers more options. When sourcing products from other businesses, there are a few things to keep in mind. First, make sure the products you select are a good fit for your store. They should complement the items you already sell and appeal to your target audience. Secondly, research the quality of the products before making your purchase. You want to make sure that you're selling high quality items that will meet your customers expectations. And finally, be aware of any minimum order requirements that may apply. This will help you avoid ordering too much or too little of a particular product. By keeping these things in mind you can source products from other businesses that successfully sell them in your online store.
3. Selling digital products
And three selling digital products. In the past, selling digital products was a bit of a challenge, you had to find a way to get your product in front of people and then hope they were willing to pay for it. These days, however, there are a number of ways to sell digital products. And here are just a few examples. One selling through an online shop. There are a number of online platforms that allow you to set up a storefront and sell your products. This is a great option if you have a large number of products to sell, or if you want to reach a global audience. Two, selling through a digital marketplace. If you don't want to set up your own store, you can list your products in a digital marketplace. These platforms allow users to browse and purchase digital products from a variety of sellers. Three selling directly to customers. If you have a small number of products, you may want to build a direct relationship with your customers and sell directly to them. This can be done through your own website or blog or through social media platforms like Twitter and Facebook. There are many other ways to sell digital products and these are just a few of the most popular options. No matter which method you choose. Make sure you promote your products in an effective way, so people are aware of them and motivated to buy them.
4. Selling services that you provide yourself
And the next thing is selling services that you provide yourself. There are many different types of services that you can sell yourself. Perhaps you have a skill that you can offer to others such as gardening or carpentry. Or maybe you have a unique experience that you can share such as being a tour guide or a professional chef. Whichever your talents may be, there is likely a market for your service. To get started try to think about what types of service you would like to offer, and then research what others in your area are charging for similar type services. Once you have an idea of the going rate, set your own prices and start marketing your services to potential customers. With a little effort, you might be surprised at how easy it is to sell your services and make a profit.
5. Selling through affiliate marketing
And another method is using affiliate marketing to promote other people's products. Affiliate marketing is a type of performance-based marketing really, in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts. For example, if you have a blog about skincare, you could promote a skincare product and earn commission on every sale made from your blog. Affiliate marketing can be an effective way to monetize a website or blog and it can be especially helpful if you're already talking about products or services that your readers or listeners or watchers are interested in. If you're not sure where to start, there are many affiliate networks that connect businesses with affiliates who are willing to promote products. Affiliate networks usually charge businesses a commission for each successful sale made through an affiliate, and they also provide affiliates with resources and support to help them succeed.
Why it’s important to test your business model before launching it
So before taking the plunge and investing time and effort into a new business model, it's important to test the model and see if it's likely to be successful. This can be done in a number of ways such as conducting market research, developing prototypes and conducting user testing. By taking the time to test the business model, entrepreneurs can save themselves a lot of hassle and heartache down the line. Furthermore, it gives you a chance to make adjustments and improve before fully launching your business. With a well tested business model, there is a much greater chance of success. And any successful business of course, must be willing to change with the times. We need to be able to make changes to our business model as needed. What works today may not work tomorrow and what works in one market may not work in another. That's why it's so important to regularly review your business model and make adjustments as necessary. This doesn't mean completely appending your operations every few years, but it does mean being open to new ideas and willing to experiment with different approaches. If you're not flexible, you'll quickly fall behind your competition. So keep an open mind and don't be afraid to make changes to your business model as needed. It's the only way to ensure that your business remains relevant and successful for years to come. Because deciding on a business model is a process that should take into account your passion, skills, and the market's needs. Prioritize these factors in order to set your business up for success from the start. With the right combination of passion plus skills, plus market needs equalling your business model, you will be well on your way to owning a thriving business. So ask yourself, 'What are you passionate about?', 'What are your strengths' and 'What does the market need?' Once you've answered these questions, you will become one step closer to finding out the perfect business model for you.
And if you enjoyed this episode, please do make sure that you subscribe in whichever podcast player you happen to be listening in and we would also love if you want to leave us a review. It helps other awesome business owners find this podcast, so it can help and support them in their business as well. Thank you so much for tuning in. Until next time.
Thank you so much for tuning in today. I hope you got lots of value from this episode. Now if you're struggling with any accounting things for your business, I'd love to help make sure you reach out to me at podcast at annette and co dot co dot uk, that's podcast at a net and co.co.uk and let me know how I can help. Of course, remember to subscribe to this podcast as well. Thanks again