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25 Proven Startup Business Models That Is Useful For A Startup Entrepreneur

A startup business model describes how a company earns income and profits from its operations. Startups typically prioritise highly scalable business models that allow them to operate with few assets and cheap capital expenditures. The statistic gross profit is used by venture capital analysts to compare the efficiency and efficacy of a company's business plan.

Subang Jaya - 11 February, 2022 - A marketplace business model is described as a company that charges a transaction fee to buyers and sellers via a platform. For example, Amazon and Uber. This business model works because these days, running a server isn't expensive these days, and it's just becoming cheaper. 

It's just connecting supply and demand rather than dealing with inventory. The sponsorship business model is characterised as a company that gets money from sponsors but does not charge its customers. For example, Youtube and any sports associations. The reason why this works is that free items tend to attract millions of users and people are unconcerned about advertisements or logo placements on their items. 

The reseller business model is described as a company that hires reselling agents to market its items on its behalf. For instance, Godaddy & Amway. This business model works because the inventory risk is reduced, and the savings are passed on to the reselling agency. Furthermore, fewer salesmen are required, lowering HR costs significantly. 

Lastly, a firm that sells a product on a subscription basis rather than a one-time basis is known as a subscription business model. For instance, Google Apps and Spotify. This works because it is possible to establish stable, recurrent cash flows throughout the lifetime of each client, resulting in a financially sound firm. Moreover, there's no need to reorder things on a regular basis.

The above are some of the business models businesses use these days. However, there are also some options that are not business models but they can be a great business strategy for your business, such as bundling, cell phone, crowdsourcing and fractionalization.

To read more about these insights, visit us at Nexea Insights 

Check out our Entrepreneurs Programme and Corporate Accelerator as well.


NEXEA is a Malaysian Venture Capital and Startup Accelerator firm that specializes in supporting and funding technology companies that have the potential to be the next technology giants. NEXEA also has services for investors and corporations that want to invest or work with future technology giants. 

NEXEA is known for its mentors who are successful ex-entrepreneurs, or C-levels who own or have sold (IPO, M&A) their businesses. The combination of experienced mentors, experts, and partners prove potent as the top companies out of 35+ startups invested by NEXEA have grown 3 to 16 times per year. NEXEA is based in Bandar Sunway, Selangor.

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Company Name: NEXEA
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Phone: 0169509880
Address:B-06-02, Sunway Geo Avenue, Jalan Lagoon Selatan, Bandar Sunway
City: 47500 Subang Jaya
State: Selangor
Country: Malaysia

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