What is a Business Model? How to Create a Business Model for Your Investors?

A professional is elucidating their business model to stakeholders through a well-structured and comprehensive presentation.

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A business model is the foundation upon which a company’s success rests. It’s the detailed plan that guides how an organization creates, delivers, and captures value. A well-crafted business model is more than just a blueprint; it’s the driving force behind a company’s operations, enabling it to generate revenue and flourish in a competitive market.

Let’s delve into the piece of writing, and flash your business model and its type. Ready to fix your business model with clear strategy and ideas? Let’s do it!

What is a Business Model?

A business model is like a detailed plan that shows how a company will make money. It explains the company’s work and its income. This plan helps to understand the basic ideas of how the business will operate and be profitable.

For a new business, having an exceptional pitch deck is crucial for presenting your business to potential investors. There are endless possibilities for the kind of business you can start. While the specifics may vary, there are a few key ingredients that all successful businesses have.

How to Create a Business Model

Creating a business plan involves several steps, and experts may have different ways of doing it. In simple terms, your business plan should:

  • Figure out who your customers are.
  • Understand the problem you’re solving.
  • Choose a way to sell your product to your customers.
  • Decide how your company will earn money.


It’s also a good idea to check and update your business plan regularly. After you’ve started your business, you can review and make changes to things like your target audience, the products you offer, or your prices, if necessary.

You have the option to enlist skilled Presentation designers specifically for creating business presentation materials, especially when you’re presenting to investors or stakeholders. Finding designers who excel in crafting impactful pitch decks is quite straightforward.

Best Business Model for Successful Investment

Person writing on a glass board illustrating business models and strategies with practical examples.

Business models serve as a roadmap for transforming your product or service idea into a profitable venture. Whether crafting a new business model or refining an existing one, embracing a structured framework can provide invaluable guidance.

When considering how to initiate a business, the initial step typically involves conceiving a remarkable product or service. 

Nevertheless, this initial spark is merely the commencement of a lengthy and intricate journey. Let’s explore various businesses within this landscape. Here are a few examples:

Affiliate Model

In the affiliate marketing model, businesses leverage the power of external publishers to promote and sell their products or services. 

Affiliates, also known as publishers, are responsible for generating sales and receive compensation, typically in the form of a commission based on a percentage of the total sale. By partnering with affiliates, businesses can expand their reach and acquire customers from the markets. They might not be able to access it on their own. 

Businesses often provide affiliates with free marketing materials to ensure their brand is represented consistently across all promotional channels.

Franchise Model

The franchise model stands as another widely adopted business structure. Numerous renowned brands, such as KFC, Domino’s, Jimmy John’s, Ace Hardware, and 7-Eleven, operate under the franchise system. 

Within this model, a successful business model is meticulously crafted and subsequently offered to investors or franchisees. These individuals then manage the business operations while adhering to the established brand identity of the franchise. 

Essentially, they acquire the brand and its blueprint, utilizing it to operate the business. The appeal for business owners lies in the absence of micromanaging daily operations. 

Simultaneously, franchisees benefit from a proven blueprint for success, minimizing the inherent risks associated with business ownership.

Subscription Model

The subscription model has gained widespread popularity in recent years, but it has been around for decades, utilized by publications such as magazines and newspapers. 

Subscription-based businesses offer customers continuous access to a product or service for a predetermined fee. Subscriptions can be purchased on a daily, weekly, monthly, or annual basis. Digital giants like Netflix and Spotify, as well as software and app developers, and online service providers, all employ this business model. 

The primary benefit of the subscription model is the generation of recurring revenue streams without the need for repeated sales efforts.

Freelance Model

Freelancers offer their expertise to businesses and organizations, typically on a contractual basis. While freelancing can be a solo endeavor, there’s also the opportunity to scale your freelance operations. By enlisting the assistance of other freelancers or subcontractors, you can expand your project capacity and share the revenue accordingly. 

This approach offers the advantage of minimal overhead costs, as you only pay subcontractors upon project completion and client payment.

The above-mentioned businesses are the top trending businesses in the market. To start a new role on this business model submit your Pitch deck design to your investors or stakeholders. 

Admit your pitch deck to a pitch deck designing agency to craft an astonishing presentation for your investors. 

Examples of Business Model

The presentation of a successful business plan is crucial for entrepreneurs. In the upcoming examples, we’ll explore various business plans employed by thriving companies.

Productivity and Business Processes:

Microsoft makes money by charging a subscription fee for its productivity software, such as Microsoft Office and LinkedIn. The subscription fee may vary depending on how much the customer uses the products. For example, a customer who uploads a lot of data to SharePoint may pay a higher subscription fee than a customer who uses SharePoint less frequently.

Intelligent Cloud:

Microsoft makes money by charging a subscription fee for its cloud services, such as Azure. The subscription fee may vary depending on the resources that the customer uses, such as storage, computing, and networking. Microsoft also offers consulting services to help customers implement and manage their Azure deployments.

More Personal Computing:

Microsoft makes money by selling hardware products, such as Surface laptops, PC components, and Xbox consoles. Microsoft also makes money from selling content and services for its Xbox consoles, such as games, subscriptions, and advertising.

Conclusion

A company is more than just a place that sells things. It’s like a living system that needs a clear strategy for who its customers are, what it’s selling, how much it’s charging, and the value it offers. A business model outlines how an organization consistently delivers value to its customers over time. Once a business model is established, the company gains a clearer vision of how it should function and what its financial prospects look like in the future.

Related Blogs

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