They say that great revolutions arise from moments of need, and we find no exception when it comes to innovation in business. Do you know what is moving in the current entrepreneurial landscape? In this article, we use the magnifying glass to highlight some of the new business models that are making a deep impression on consumers.
It is a more than proven fact: new business models are currently emerging that break with everything conventional: restaurants that are not really (on the contrary, they are kitchens that exclusively deliver food to homes), human food for pets, chatbots who talk to customers…the list of ideas that are changing the way we do business is getting longer.
But what must a business model have to be considered new or innovative? Fundamentally, you have to offer an innovation that sets you apart from existing alternatives on the market, if any. In other cases, the business model is so utterly innovative that it stands squarely as a pioneer in its field.
Example of a successful business model
In almost all industries, a specific business model tends to become firm, representing the most efficient way of responding to a particular consumer demand.
As this business model consolidates, attempts to give it a twist keep happening according to changes in the market: new consumer trends, consumer niches that were previously irrelevant, etc. And while these don’t usually threaten the established system, occasionally, an idea is born that changes the course of the industry entirely.
A clear example of the birth of this type of new business model is the case of Airbnb. Who, until then, could conceive that a new startup with a budget of just over €150,000 at birth would shake the foundations of the entire hotel industry?
According to the Harvard Business Review, one of the common aspects of business models that manage to lead their sector through innovation lies in centering their value proposition around a more personalized product or service. But there are other paths to innovation.
Other standard features that the institution above found after analyzing a total of forty new business models were the collaborative economy —as in the case of Airbnb or Uber— a pricing model based on the use of the product by the consumer or the use of collaborative systems.
In short, where there is creativity and an entrepreneurial eye, innovation through new business models will be served.
New business models to inspire
Although the list is long, we have selected four business models that are especially booming today:
Subscription business model
Anything you can imagine can be purchased on a subscription model, but the business model still has much room for innovation. Weekly subscription vegetable boxes, pet food or even diapers, the subscription business model is comfortable for users and most profitable for companies, which ensures recurring income.
Freemium business model
This business model offers a free service in its basic version. This helps to get a huge user base that can opt for the payment option anytime. If the free option is attractive enough, the business can succeed.
A business model Ghost restaurant
This type of catering business does not reserve tables for as many or how many diners, nor do they need to have waiters to serve customers. Taking advantage of the delivery boom, these restaurants work exclusively for customers who order food at home.
Business model Business incubator
With the startup explosion, another business model making headway is helping other entrepreneurs get ahead with their new businesses by providing them with the training they need. Of course, in exchange for a percentage of the company that, if things go well, will mean a financial return later for the incubator.
These are four examples of the many business models betting on innovation today. Are they enough inspiration to start your own business? In life, as in business, there is nothing like learning from the best.