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5 Business Plan Models to Use for Reference


Having business plan models will increase your chances of success with your new business. It is essentially a summary of how your company will serve customers. This takes a lot of planning and research along with desire, motivation and talent. This process will assist you in building a well thought out plan as well as thinking over important issues you want to consider before committing to a final model. A well-researched plan will serve as a guide to help you in remembering all the little things that sometimes gets left behind.

Some of the models below have been in use since the early 20th century and most have been adapted to fit the needs of the new business owner.

1. The Subscription Business Model

Book clubs, magazines and record clubs have used this model for a long time but due to the changing times and changing economy many other industries are now using the subscription model. Some companies who now use this model include cable TV, internet service providers, phone company, and newspapers.

2. The Bait and Hook Model (AKA Razor and Blades Model)

King C. Gillette who used this model for the sales of razor handles and disposable razor blades and continues to be used today. In some businesses in the U.S., namely in the auto parts industry, legislation exists to prevent this model from existing.

3. The Pyramid Scheme Model

The Pyramid scheme has been in existence for at least one hundred years and involved an exchange of money without delivering a product or service. One of the best-known Pyramid schemes is the chain letter and although they are illegal, they persist in many other forms two of which is multi-level marketing and matrix schemes. Some companies known as multi-level marketing include Amway, Mary Kay, Primerica, Equinox, Herbal Life and NuSkin.

4. Monopoly Model

This model is defined as a situation where there is only one provider for a service or product without any competitors. The only good example of a "de facto" monopoly in recent years is the De Beers diamond trading company which holds a little less than 90 percent of the world diamond market.

5. Online Auction Model

This is one where people bid for products or services through the Internet. There are several kinds of online auctions possible; one of the most popular and largest is eBay. eBay does not sell products or services it owns itself, it is a tool used for others to list items, bid on items, sell items and pay for them. It acts like a go-between for businesses and individuals to do business. The advantages to this business model include no time constraints, large amounts of bidders and sellers, no geographical constraints. Some other companies who use this model include Yahoo!,, and Bidville.

A good business model, or design, is never finished, it is always a work in progress and no matter how long you have been in business, a current and updated business design should always be on file. Below is a list of business plan models for your reference, which can be adapted to your specific business needs.

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