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= Choosing the Right Business Model =
Starting a business begins with one of the most important decisions: selecting the right business model. A well-chosen model defines how your company creates, delivers, and captures value. It also influences growth opportunities, risks, and investor interest.

== What Is a Business Model? ==
A business model describes the way a company operates and makes money. In simple terms, it answers three questions:

* **What value do we provide to customers?**
* **How do we deliver this value?**
* **How do we earn revenue from it?**

== Popular Business Models ==
Here are some of the most common models for small and medium businesses:

* '''B2C (Business-to-Consumer)''' – Selling directly to individual customers.

  Example: online clothing store, café, or local service business.

* '''B2B (Business-to-Business)''' – Providing products or services to other companies.

  Example: IT outsourcing, consulting, wholesale trade.

* '''Subscription Model''' – Customers pay a recurring fee for ongoing access.

  Example: SaaS platforms, fitness clubs, educational courses.

* '''Freemium Model''' – Basic service is free, advanced features are paid.

  Example: mobile apps, online platforms.

* '''Franchise''' – Business is expanded through franchise agreements.

  Example: fast-food chains, retail shops.

* '''Marketplace''' – Platform connects buyers and sellers, earning from commissions.

  Example: e-commerce platforms, freelance marketplaces.

== How to Choose the Right Model ==
When choosing a model, consider:

# Your target market and customer behavior.
# Available resources and startup capital.
# Legal environment in your country.
# Scalability and long-term profitability.
# Risks and level of competition.

== Practical Example ==
Imagine you want to open a fitness studio:

* As a B2C business – you sell memberships directly to clients.
* As a Subscription model – you charge a monthly fee for unlimited visits.
* As a Franchise – you join a known fitness chain, paying royalties but receiving brand support.

== Related Topics ==

* [[Starting_a_Business_from_Scratch]]
* [[How_to_Write_a_Business_Plan_That_Attracts_Investors]]
* [[Scaling_Your_Business:_When_and_How]]

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