Are you in the process of beginning your independent business venture? Then, here are some aspects you should consider while breaking down your business model. Firstly, you must know what drives the economy? ‘Supply’ and ‘Demand’ are the key factors fueling businesses and the economy as a whole. Demand is simply the consumer’s requirement and ability to buy a product or service and supply is the quantity that providers are willing to bring into the market.
Before launching a business into the mainstream you as a business person must be aware of the demand for your product or service will have. The basic determinants for demand are the price of products/ services, price of related products/ services, the consumer’s income, their tastes, expectations and the potential buyers in the market.
What are On Demand Services and How do they Work?
In this instant world scenario where smartphones are ruling most households, on-demand services and solutions are gaining a lot of attention. To make things easy, on-demand business as the term suggests are businesses that provide services on demand, just a click away on your mobile device or desktop. The on-demand business connects digital marketplaces and tech organisations to fulfil consumer demand with immediate access to products and solutions.
The Gen C is now all about such on-demand services like Uber being the greatest quoted example where there is immense scope for creativity, curation, connections and community. The whole process works in a simple flowchart beginning with the end user or the consumer placing an order of the desired product or service through a website or a mobile application. The user inputs the required parameters and sends a request to the supplier or service provider for the product or service. The supplier or service provider then completes the whole process by providing the desired entity and receiving the payment. With the onset of on-demand service providers, managing bookings and orders has got extremely easy.
There are many benefits for the on-demand economy including cost-effectiveness, flexibility and scalability. The millennials and generation Z is all about small businesses and startups. But are these two different concepts?
Difference between Small Businesses and Startups
Before starting a new venture it is important that you decide whether you want is to begin a startup business or a small business. While both these terms point to a fresh new beginning of a business idea in the market they differ with the ideologies followed. Startups are based, to begin with, a greater vision to the future to turn into a major company whereas small businesses mainly focus on staying in the business for longer periods.
Startups need not be a smaller version of a big organization but is an independent entity that promotes stellar ideas and strategies and wants to create a place not only in regional or national markets but also in international markets. They might not start with profit from day one and will require better investments on the go. Whereas, small businesses are self-sustaining organizations that generate revenue from day one. Small businesses usually only eye the local or regional markets where they are sure to generate profit margins easily. They do not require major investments and hence will be smaller in size and sales incomes compared to startups.
Once you have decided on the business choice, next comes in the methodology to promote your business. Nowadays, there are several options for startups to go for. Apart from sales and marketing strategies the way the business reaches the common people or the public is now of greater importance with Customer Experience being the vital factor in potential sales.
Among the major business models prevalent to date, on-demand business models are the most efficient choice. On-demand businesses are here to stay in the market and are the quickest and the largest growing commerce sectors in the digital world.
On-Demand Business Model for Startups
In this era where mobile devices or smartphones are greatly used, on-demand services can easily get the right in the market. From visiting stores after travelling through tough and packed roads, difficulty in parking, selecting products and above all the long queues for billing can all be erased with on-demand services online. The digital world has progressed significantly such that you can now order things at the comfort of your home and get them delivered at your doorstep.
Gaining motivation from the fast delivery boys in town, on-demand businesses are now fastly growing to conquer the commerce sector with a large margin. On-demand businesses are the most simple business models for startups. All you need is a perfect Uber for X clone script that can be customizable for your business requirements. One such an open source turn-key solution for on-demand services is iScripts UberforX. This premium e-commerce software serves the needs of various on-demand services that come along with its own mobile application. A well-designed website and a user-friendly mobile app are all that you need to launch your dream on-demand startup venture. Once the idea is designed in a real frame, the next point arises is the target audience and their demand. This is where on-demand platforms have the advantage of being accessible to customers at just a click away.
The major advantage of implementing the on-demand business model is the openness of the system that is nor confined to any industry or location. The system can be applied for all major industries include health, fitness, clothing, taxis, household services, tutors, design and development services, tourism, etc. With the closeness of connecting suppliers or service providers to customers, it is easy for end users to select from the large variety of options and also get hands-on best deals and offers. Apart from the usual picture of immediate deliveries you can also incorporate scheduled deliveries for customers who would prefer the same as for special events like anniversaries, birthdays, formal events, etc. Being beginners in the business industry it is vital to create and maintain long term connections with similar interest groups and businesses which can aid to the growth of your startup. A successful on-demand platform will be ones that do not compromise with accuracy, quality, punctuality and feedbacks. Staying connected with the customers positively and retaining them is one of the best strategies to build your potential customer strength.
This business model has been gaining appreciation with its closeness to the consumers where you can get immediate insights on the business performance. With Customer Experience becoming the most vital factor for business success stories, on-demand startup businesses can win hearts with their fast deliveries and quality services.