What's the best kind of business model?

There are different kinds of business models that you can use: ranging from subscription based to a J-curve.Here is one type of business model that I have noticed that is rather cutting edge.It is inspired from the American 1849 Gold Rush, where gold was discovered in California and people from all over the USA went there to dig for gold. As the people migrated to California, they needed supplies, food, shelter, equipment, etc. They needed to buy things and spend their dollars. The people that made the reals money were those that were selling the pick axes, the food from their general stores and the rooms in their hotels.The people that were selling the pick axes made more money than the majority of the people flocking there to dig for gold. So, this means that you need to endeavour to sell the modern day 'pick axes' that allows people to 'dig' for gold. When you are selling the pick axes, then everyone can buy from you and make money using what you are selling.So, firstly sell the pick axes: sell the tools, software, technology, access, intellectual properties, licenses, etc, that allows people to make money from it. As they make money, others will then want to make money too and thus they will buy from you.Sell people the pick axes so they can dig for their own gold. Amazon allows me to have a book on their platform and they make a small profit on every book that I, and other authors like myself, sell on their platform.But also, there is a another way you can use this idea to make money: provide people with access to something, without owning it. Create a platform that allows people access to a wider audience or to something they need.Look at Uber, AirBnB and Fiverr. Uber do not own any cars, yet they are giving people access to cars. AirBnB own not real estate, yet they are selling access to beds and accommodation. Fiverr do not have a team of designers or artists, yet they are selling access to those people.What product or service can you give people access to? Find a problem in the market so you can fill it. That's what entrepreneurship is all about: solving problems.Learn more about this in a book I wrote:The Secret to Wealth: Own Nothing
 •  0 comments  •  flag
Share on Twitter
Published on April 27, 2017 01:10
No comments have been added yet.