But maintaining a startup and start business in Singapore is no easy feat, that is why you should consider using one of these business models that suit your need, so it can help you build a solid framework – enabling you to sustainably run your business.
Getting a good business idea is the first step. If you need ideas, check out BizOp. Now that you have a brilliant idea, it is easy to start a startup business because there is so much open-source technology out there to help you get going.
But maintaining a startup is no easy feat, that is why you should consider using one of these business models that suits your need, so it can help you build a solid framework – enabling you to sustainably run your business.
Definition: Selling a product or services to receive a recurring subscription revenue.
Pros: Allows you to receive a recurring cash flow for as long as the subscription holds – which generates financial stability for the business. There is also a compounding value of customer relationships as they will continue the subscription when they see the value your business offers.
Cons: There is a reasonable amount of churn-risk as competitors will always try to outperform one another by providing a more competitive offering.
Definition: Providing a basic product or service for free and charging money for the other premium or additional features.
Pros: The free-tier products or service lets customers learn about your business offers, and once they start to appreciate what you can offer, they will start cultivating a preference and reliance on you, and eventually continue doing business with you.
Cons: You may end up throwing away your cash reserves and resources on a large number of non-converting customers if your product offerings are not attractive enough.
Definition: Fulfilling customer demands by providing prompt delivery of goods and services to their convenience.
Pros: Our society has been geared to seek instant gratification and customers will always be looking for the fastest ways to receive goods or services, thus being faster than your competitors always gives you the better edge.
Cons: Sometimes the logistics can get tricky when the demand is too large, and your existing system cannot handle them. This can become a bad experience for your customers when you fail to deliver on time.
Definition: Cutting out the middlemen from the distribution channel, and instead selling directly to the customers.
Pros: It eliminates your intermediary expenses as you can sell your products yourself instead of through the middlemen. It gives you more control over your production requirements, which allows you to better price your products. You also get to build relationships with your buyers and get feedback from them directly, which can be mutually beneficial.
Cons: Without the middlemen, it would mean more work to do. Those jobs such as taking orders, fulfilling the job orders, packing, delivering and customer services would be your responsibility. It can get overwhelming when the orders fluctuate greatly.
Definition: Selling products before it is made or delivered.
Pros: It gives you a good estimate of product demand and guarantees you a certain amount of revenue within the pre-sale period. It also serves as a great marketing technique that can create a hype for your products.
Cons: If the production cannot be met on time, it may negate your credibility.