One defining factor for a start-up founder is finding solutions to a common, everyday problem the masses face. And more often than not, the start-up founder resorts to technology to provide these resolutions. In this article, let’s discuss designing an outstanding start-up business plan.
The Indian start-up ecosystem emerged into the people’s consciousness by the early 2000s. Those times were challenging as the entire idea was new, and there was no robust support system for the founders. Incubators and accelerators were few, and there was hardly any participation in funding by the general public.
How things changed for the Indian start-up space
The Indian start-up ecosystem has witnessed remarkable changes in the last ten years. The start-up market in India has come into prominence. News of successful ventures has become the norm of the day. From the primary hub of Bangalore, the culture has spread fast to Mumbai and NCR. Today, with the entire nation being fascinated by the Indian start-up success story, we also get start-ups emerging from Tier-2 and Tier-3 cities.
The technology boom, accelerating start-up growth
Start-ups have marked their presence in diverse fields. India is an emerging market with huge untapped potential. Although we were late to adapt to the new age of technology, Indians have caught up with the rest of the world pretty fast . With very cheap Internet availability and a decently reliable network, which has spread across the length and breadth of the country, the whole of India has got electronically connected. Technology has been a big boon for Indian start-ups. Liberal and favorable government policies, especially initiatives like ‘Start-up India’, have given wings to the dreams of start-up founders and promoters.
What are some outstanding revenue models for start-ups?
So, if you are a business founder in India, this is probably the best time for you to start or scale your business. For any business to flourish and thrive, it is crucial to understand the modes of revenue generation. A sensible start-up business plan must factor in the best revenue model suited for that particular business. Let us look at various options available for your start-ups.
1) Direct sales
If your business activity involves providing sales or service to the consumer , then direct selling is probably the best option of revenue model available to you. For most of the transactions done, there is a facility for making the payment directly when placing the order. Many businesses also offer cash on delivery options. For high-value purchases, tie-ups with banks and credit card companies allow you to offer EMI facilities to the consumer. Upfront payments are probably the best bet amongst all the revenue models.
2) Channel sales or indirect sales
In this model, the business owner relies on agents or resellers to sell their products or offer services. Channel selling also involves listing on various marketplaces. As direct sales come with inherent costs, many founders prefer indirect sales.
As the direct selling factor is outsourced, the founder can then concentrate on other aspects of the business. Receipts from such channel sales get credited to your account within a specific period, depending on the retail partners’ arrangement.
3) Subscription model
A subscription model allows for the consumer to keep making regular payments, usually from month to month, or in some cases, even from year to year. As a business owner, this revenue stream becomes very important for you to gauge the future income that your business will generate. If your start-up business model is such that consumers keep coming back periodically for their purchases, then this type of subscription model would work wonderfully well for you to bring in the revenues.
4) Ad based revenue model
Many high-profile social media platforms have successfully used this revenue model to generate substantial revenue for the operations. If your business involves attracting many visitors to your platform, then this revenue model can bring in a lot of money. Allowing ads to be placed on your platforms and charging for the same becomes a win-win situation for all concerned parties.
5) Affiliate revenue model
The affiliate revenue model is another trendy revenue model. The affiliate model allows you to promote links to relevant products or services and collect commissions when the consumer uses or purchases from the affiliate links. The affiliate revenue model can work with the ads-based model or operate separately.
6) Freemium model
The model’s name may suggest a modern innovation, but this type of revenue model has been around for a very long time. This model can be adopted by businesses that offer their essential services for free , but customers need to pay the requisite charges for any additional or premium services.
Companies may offer added products for free but require payment for installation or customization, training, or other additional services.
7) Licensing revenue model
Businesses that own intellectual property rights or have patented their inventions follow this revenue model. The licensing revenue model allows the business to generate a steady revenue stream and monetize its inventions.
While it’s crucial to have a distinguished start-up business plan, it is equally important to take care of your employees’ wellbeing to ensure upbeat corporate productivity. At Plum Insurance, you will get appropriate corporate health plans for your team members, suiting your requirements.
The business model must be crafted with utmost care; it should ideally not undergo many iterations once finalized. So, depending upon the nature and characteristics of a business, a founder can select the revenue model optimally suited for the business’ operations. The correctly chosen revenue model helps the start-up founder create the much-needed flow of income for the business.