Here's how you can choose the right business model as an entrepreneur.

Using market research tools like Mergent First Research, Verticle IQ and BizMiner are definitely helpful when considering your business model. The industry insights can help you identify the opportunities you can capitalize on in your business as well as the challenges you can prepare to overcome. Many market research databases are available at local libraries at no cost. Learning as much as possible about the industry as a whole can help you identify a niche where you can start building and learn more about the market area you serve.

Clearly define the problem your business aims to solve. Determine how your product or service addresses this problem. Identify what makes your solution unique compared to competitors. Define your target audience in terms of demographics, psychographics, and behavior. Understand the needs and preferences of your potential customers. Assess the size and growth potential of your market. Selling products or services directly to customers. Charging customers a recurring fee for continuous access to a product or service. Offering basic services for free while charging for premium features. Generating revenue through advertising on your platform. Licensing your product or technology to other businesses.

Study the business models that are successful in your industry. Examine how these businesses generate revenue, manage costs, and deliver value to their customers. For instance, subscription models are thriving in the software industry due to their steady revenue streams and customer retention benefits. By understanding what makes these models work, you can adopt and adapt elements that suit your business. Also, consider the scalability and flexibility of each model, ensuring it can grow with your business.

I totally agree that figuring out what the market wants is the crucial first step in building a successful business model. It is important to do a lot of market research to find gaps and learn about customers' pain points. This process helps business owners make sure that their business model matches what real customers want. This way, they can be sure that the value they offer is both known and wanted. You can make a strong value proposition by focusing on solving specific problems for your target market. This will make customers happier and more loyal. When you take this approach, you not only get quick results, but you also build a business that can last and change as needed over time.

Study the business models that are successful in your industry. Examine how these businesses generate revenue, manage costs, and deliver value to their customers. For instance, subscription models are thriving in the software industry due to their steady revenue streams and customer retention benefits. By understanding what makes these models work, you can adopt and adapt elements that suit your business. Also, consider the scalability and flexibility of each model, ensuring it can grow with your business.

Reflect on your personal strengths and resources. Are you a sales whiz with a vast network? A business model reliant on direct sales or consulting might be perfect for you. On the other hand, if you have a background in tech development, a product-centric model could leverage your skills effectively. Assess your experience, skills, and available resources to determine which business model you can execute successfully. This alignment increases your chances of thriving in your chosen field.

Finding the right business model does require you to think about your own strengths and resources. Thinking about your skills, experience, and resources can help you pick a model that you can carry out well. A business model that depends on strong customer relationships might be best for you if you are good at sales and networking. Instead, if you are good at coming up with new ideas, a model that focuses on product development might be best for you. By evaluating yourself, you can make sure that your business strategy is in line with your unique skills. This will increase your chances of success and long-term survival in a competitive market.

Understanding the financial implications of different business models is crucial. Some models, like manufacturing, require significant upfront investments, while others, like dropshipping, have lower initial costs but might incur higher ongoing expenses. For example, opening a physical retail store demands a considerable initial outlay, whereas an e-commerce platform might be more cost-effective initially but requires continuous digital marketing investment. Evaluating these costs ensures that you choose a financially sustainable model.

Testing your chosen business model in the real world is essential. Start with a minimum viable product (MVP) to gauge market response and validate your assumptions. This allows you to gather feedback and make necessary adjustments. For example, if you launch an MVP of a subscription box service and find that customers prefer bi-monthly over monthly deliveries, you can adapt accordingly. Flexibility and willingness to pivot based on feedback are key to refining your business model and achieving long-term success.

As an entrepreneur in the L&D space, more than founding a company think about curating a community. L&D professionals are a tight and active community. Mature and healthy community behaviours such as referrals, word of mouth, knowledge sharing and collaborating are frequent in most L&D and T&D communities. As an entrepreneur who is fortunate to generate most business through referrals, my sincere recommendation is that if you are just starting off, definitely keep the following three community-building points at the forefront always: 1. Be a giver first and receipt will become a bi-product 2. Contribute to the community often but not so frequently that you seem pushy 3. Focus on contributing the highest quality possible

This was how I started. Before the ideas came, I started building a network. From classmates to lecturers to colleagues, employers, friends etc. LinkedIn helped expose me to a much broader and technical-oriented network and meeting new prospects during networking events helped. While all these went on, the discussions started. What do you do? What are you looking forward to doing? What ideas do you have? How can we work together? These were critical questions I was asked which birthed ideas and exposed me to more networks. Today, we have clients in over 9 countries and we are expanding. For me, talking to the right people helped expose me to the right guidance, training, courses and programs to develop a sustainable and fast growing model

Building a strong network is important for supporting the business model you have chosen. A strong network gives you access to useful information, resources, and possible business partnerships that can make your company much more successful. Networking with people in the same industry as you, as mentors, and as advisors can help you learn about best practices and avoid common mistakes. In addition, people in your network can help you find early customers or clients, which can help you test and improve your business model. By using these connections to your advantage, you not only get important help and information, but you also set yourself up for long-term success and growth.