Only think about a business model when you start a business as a starting entrepreneur? Not really! More and more progressive business models are emerging that ensure that you continue to grow as a company in the future. In addition, it is important to be clear about what your company’s business model is, so that it is clear to everyone how the company creates, delivers and retains value.
A company takeover is therefore the perfect opportunity to take a critical look at your own business model. Are there new opportunities, competition, risks and potential customers that do not fit within your current business model? Are there companies that serve the market in a different way?
But how do you know which business model might be interesting for your company? Below we make a distinction between seven variations on how alternative business models can add value to your company.
Peer-to-peer often involves online platforms on which people can offer and borrow products themselves. These are often expensive products that are not often used that can then be borrowed for a small amount. As a company you facilitate this loan construction. Peer-to-peer is widely used for tools, among other things. An important aspect for the success of this model is the distance, it must be small. Otherwise the step is too large to borrow the product.
2. Open prices
With open prices you give the customer the opportunity to value your service and to attach a price tag to it. It is therefore very important in this model to build a strong relationship with your customer. Another option is to provide part of your services for free in order to create goodwill. An advantage of an open pricing strategy is that you gain a great deal of insight into the appreciation of your customers and you can respond well to your strengths and weaknesses in your business.
3. Earn from the non-core business of others
Dive into the opportunities that other companies leave out. Can another company not offer a certain service because they prefer to focus on another part of their company? Jump in! There is a lot of demand right now. This is your chance.
4. Crisis model
This model is based on your original business model, only cheaper. As a company you produce a cheaper version of your existing product. Here you not only address a new target group, but they also become familiar with the product. Because of this, they are ultimately more willing to pay more for the more expensive product, because they have already had a positive experience with your company.
5. Mobile services
This model is also based on your original business model, the only difference being that this service can be performed on location. Then apply this to completely new sectors, so that you can reach new target groups.
6. Lock-in model
Creating a lock-in can be a deliberate or unconscious strategy to keep customers committed to you. With this model you ensure that customers cannot switch to another provider for a certain product or service without incurring too high costs. For example, for a long time you could only use the Nespresso cups in their coffee makers.
7. Circular economy
With this model you do not sell the product itself, but the use thereof. Certainly not a new phenomenon. We already know, for example, leasing cars or coffee machines in offices. What is innovative is that it is increasingly being applied to products that you do not expect. Such as carpet tiles and clothing. This way you use what is already there and you spend less money on raw materials. In addition, it also saves the environment.
In short, it is a good time, right now, to take a different path with your business plan. To not only look at what you as a company are currently earning money from, but also at how you can continue to do so as a company.
These 7 variations explain how alternative business models can add value to your company. Looking for other ways to add value? Read about it in this blog.