6 brilliant business models to start with

When meeting up your friends for entrepreneurship, you have got some great ideas and are being indulged, but a friend of yours throws you a big question...

"How do we make money out of it?"

Sell it? Rent it? Or maybe provide it for feel but charge for advertisements from others?

Ok, a business model is what you need, to combine your brilliant ideas into profitable business.
This is also an important factor in your pitch deck which investors would be interested in most.

Peter Cohan has provided us the following 6 brilliant business models for startups to consider.

Would one or a combination of these ideas work for your startup?

	Reverse auction
Descriptions	Extremely price-sensitive buyers name their price for a service. If the seller accepts the price, the buyers must commit to the seller’s terms.
Examples	Priceline
Revenues per employee	$716,000
	Demand aggregation
Descriptions	Assemble all the sellers and buyers for some stuff in the same virtual location.
Examples	eBay
Revenues per employee	$479,000
	Low prices for industry share and profit later
Descriptions	Target a huge market and sell a product at the lowest price with fast delivery and great service. As the company grows, cut waste from the operations and then deliver the lower costs to customers in the form of lower prices.
Examples	Amazon
Revenues per employee	$634,000
	Modern franchise business
Descriptions	Figure out how to run a local retailer and turn this business wisdom into a system that can be sold to entrepreneurs around the world.
Examples	McDonald's
Revenues per employee	$64,000
	Product at the highest price
Descriptions	Find customers whose survival depends on a product that nobody else can provide and then charge them a great amount for your product
Examples	Alexion Pharmaceuticals
Revenues per employee	$874,000
	Person-to-person exchanges
Descriptions	Coordinate spare personal resources and find trustworthy people who are in short and will pay to use them.
Examples	Airbnb
Revenues per employee	N/A