Types of Business Models

What are the Different
Types of Business Models
in India?

January 27, 2023 • 1019 views
Author: PoonawallaFincorp Category: Business Loan

The Indian business sector is witnessing a huge transformation amid the rapid growth of Micro, Small, and Medium Enterprises (MSMEs). More and more entrepreneurs are inclined towards various business models to make their products stand out from the rest. 
Every enterprise needs strong financial backing and a great business model to survive. Hence, it is important to learn about the types of businesses in India and the various business models. 

Why do you Need a Business Model?

Business models are critical for identifying the target audience, the products, and services you want to sell, and other anticipated expenses that come with expansion. Even if a business is established, the business model needs to be updated from time to time. This is essential for the growth of the business as you need to form a strategy to tackle the challenges and needs arising from future consumer behaviour and demand. 
Having a good business model will enable you to make effective marketing strategies, project revenues, and losses, and identify your customer base with better insights. In case you are looking for investors for your company, your business model will be taken into account. A company’s business model helps investors to get knowledge about the company’s potential in the business sector, along with its competitive edge. 
Let’s understand the different types of business models in detail. 

List of Types of Business Models in India

Types of Business Models

  • Business-to-Business (B2B): When your business makes its transactions and dealings with another business, it is known as a business-to-business or B2B model. This business model allows business owners to operate at lesser costs as the production and sales are done in bulk. Some examples of B2B models are retail platforms, raw material enterprises, and tech service-providing companies. 
  • Business-to-Customer (B2C): This is one of the most common types of business models in India. Here, businesses sell their products and services directly to consumers. The consumers are the end users of particular products or services. As there is an ongoing demand for essential products, this model eliminates the risk of fluctuations, enabling you to maintain consistency. 
  • Subscription-based: Here, businesses offer their products and services as a one-time purchase, and the consumer has to pay monthly or annual prices. This type of business model allows enterprises to gain a regular income and allows customers to choose between making 12 equal payments or paying the entire amount at once. 
  • On-demand: This type of model is most popular across internet-based businesses. The model is prepared in such a way that customers can get their answers/products with just a click of a button. Some examples of this business model are online airline and hotel booking service platforms. 

What are Some of the Advantages of Having Different Business Models?

A good business model enables a company to gain a competitive edge in the market, especially in the domain it operates in. It also gives a good reputation to the company, making it easier for them to get investors. Further, having a strong business model will lead the organisation to have a consistent income and even increase cash reserves and investments. A suitable business model can be a pillar for creating financial stability in an organisation. 

Want to Get Funds for Your Business?

Financial backing is as important as having a strong business model for both new and established enterprises. As you move towards your business expansion goals, you will come across numerous unexpected expenses that could potentially disrupt your cash flows. 
If you find yourself in such a situation, an unsecured Business Loan can be a good option for you. You can avail of funds up to ?50 Lakh with Poonawalla Fincorp’s unsecured Business Loans. Our loan application process is fully digital, so you can apply for a Business Loan from the comfort of your home. 
Our eligibility criteria for business loans are easy to fulfil and we only require minimal documentation to approve your loan. Leverage Poonawalla Fincorp’s Business Loans at competitive interest rates and no hidden charges. Apply now!

Frequesntly asked quesitons about types of business model.

Q.1: How many types of business models are there in India?

There are 4 commonly known business models in India. These include business-to-business (B2B) model, business-to-consumer (B2C) model, subscription-based model, and on-demand model.

Q.2: What are the 4 types of business models?

Business-to-business (B2B) model, business-to-consumer (B2C) model, subscription-based model, and on-demand model are the 4 types of business models.

Q.3: What is the most common business model?

Depending on the nature of the industry and the type of business, entrepreneurs and business owners can choose a business model that suits them best.

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