the 10 best business models for 2021

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If you asked me when I graduated college, I would start my company. I would have laughed at you. The strange thing is that the world has forever changed and so has entrepreneurship. Back in the early 2010s, it was something people did in their spare time. And very little was known about blogging or how to be successful at it.

Flash forward to 2016 and there was a tremendous surge in people who started their companies. Many bloggers became instant sensations and started their blogging empire. There were also other entrepreneurs who became influencers. Hard to believe that was four, nearly five years ago. This year has hit many of us hard. And another boom is about to going to emerge. Many people who lost their jobs will start a company or two.

And maybe you want to be part of that. And you have no idea how to start or what business models will intrigue you. I wanted to talk about the ten best business models because many business models might be outdated or hard to start in this climate. For instance, starting a brick-and-mortar business won’t be as easy to start as it was. So, that option is out of the window.

Who doesn’t know about franchises? But unless you have a rich uncle or aunt who will give you money, then it will be tricky getting a bank to give you the money. And with what has happened this year, there’s no guarantee that next year this business model will be as profitable. A lot has changed for the way the world looks and functions, so when you are choosing a business model, you need one that will work for you.

What this means is you need to pick a business model that won’t cause you a financial hassle. You want a business model that you can start with less than $500. Yes, that is possible. But it all starts with understanding business models and being cautious. So, without further ado, let’s get into the meat of this article.

What the heck is a business model?

If you learned business in high school, you might have captured the basics of a business model. What you learned is still relevant today. A business model is the structure of your business.

What are you selling?
How are you selling it?

That sounds too simple. But this is exactly what a business model is. The reason you need one is you need to know the direction you are going into. Most businesses started from one business model and then as they grew, they added more. So, if you are mulitpassionate or you are worried you won’t be satisfied with one, that’s alright, you can pick one then pick more when your business grows.

This is for simplicity. We want to make your life as easy as it can be. These business models range from easy to hard, but it all comes to what your experience is. We will get into that with every business model, so you aren’t stuck with options.

Also Related: How to Start A Business in Just 3 Months

1. Services

Yup, you guessed it. Services are one of the 10 best business models for 2021. It will always be relevant regardless of technological advancements. We are always looking for people to help us with a problem. You trade your time for your client’s money. This is simple to set-up because you don’t need to be technological. However, it requires a lot of time to do this one. Because you are trading your time for money, you won’t make as much money as you want to. Writers, coaches, yoga teachers, make-up artists, graphic designers, virtual assistants, wedding co-coordinators etc fit well into this category.

2. Products

This is one of the best business models to set up for 2021. There are hundreds of articles on how to set up a profitable product-based business. When you sell jewelry, Ebooks, courses, printable, wine or cupcakes, you have a product-based business. As you can see from the list above, you can sell either physical or digital products. The reason this business model is easy is that it is clearly defined. You need to sell a physical or digital product to become profitable. I suggest selling digital products if you are starting out because you won’t require a lot of money to start your business. However, if you want to sell physical products just remember you need to have saved enough money for equipment, fulfillment and other incurred expenses.

3. B2B (business to business)

This is one of the best business models for 2021 because companies will always buy from other business. This is what B2B is. One company sells to another company instead of an individual. Take for example Apple buying phone chips from Samsung or any other company that buys from another company. This is how they stay afloat. Another simpler example are event companies. They might not buy a product, but could rent it. They rent space, chairs, equipment and buy food from catering companies. They are a lot of examples of B2B.

4. B2C (business to consumer)

This is one of the best business models for 2021. B2B and B2C business models will continue to exist because they will always be businesses that need to buy from other companies and they will always be businesses that sell to consumers. This is what B2C is. Businesses create a product to meet an individual’s goal, and then they sell it. Think grocery stores, bookstores, or any other store or company that you walk into. Maybe it’s your Netflix subscription or the furniture store or even the hardware store. Just like B2B, there are several examples of B2C.

5. SaaS (software as a service)

In the last decade or so, this has become increasingly popular and will continue to increase in popularity with technological advancement. Therefore, this is one of the best business models for 2021. They are a lot of software as a service business model out there, you just have to look at the apps you have paid for. The calendar apps you already use. On a broader spectrum, it’s the website builder you use or the email marketing service that you pay for sending emails to your audience. SaaS comprises all the work and home-related tools that you use in order to increase productivity or get work done.

6. P2P (peer to peer)

If you have never heard of this business model, you aren’t the only one. In recent years it has become overwhelmingly popular and it is one of the best business models in 2021. Two individuals create value by coming together to create a service or experience that can both profit from. Uber, Airbnb, HouseTrip, Craigslist, Freelancer and Etsy. They are several other companies that fit under the bracket of peer-to-peer. Whenever a transaction happens between the people connect, that’s when they make a commission. These people can be guests, drivers, hosts, job sites, marketplaces, etc.

7. Content

Content based business models are one of the earliest business model. It’s been there since people understood the importance of entertainment and news. Of course, the delivery has changed, but it has stopped content-based business models from being popular. That’s why it’s one of the best business models for 2021 because more people are going online. They are dozens of examples of content-based business models. YouTube channels are one example, but so are podcasts, blogs, news channels and magazines. As long as you are delivering content to your audience on a weekly basis, then it fits under this category.

8. Ecommerce

This list wouldn’t be complete without including Ecommerce as one of the best business models for 2021. They’re many people who have become millionaires from ecommerce and it continues to expand as more websites help people sell their products. There are several ways you can do ecommerce. You can create t-shirts and sell it on Amazon Merch. You could do accessories, outdoor gear, jewelry, cell phone cases, home equipment and other stuff. You can sell it on one of the largest ecommerce websites, and that is Amazon.

Ecommerce that they are other business models that fall under it. One of them is POD also known as print on demand. This allows anyone to customise a product, but it is only shipped when a transaction is made. Think of selling t-shirts, sweaters or pants that are POD. Drop shipping is another method of ecommerce. This where an online store sells a product to a consumer, but the product moves from the wholesaler to the consumer without being handled by the seller.

9. Subscription business

You pay weekly for a particular service. That can be Blacksocks, Birchbox, GeekGearbox and Justfab. There are more examples of subscription businesses. This is another old business model. It’s been there since the 17th century. The model was pioneered by book publishers who sort to deliver periodicals of books. People would pay a monthly fee to get to read the periodicals. Next year subscription businesses will continue to grow exponentially, and that is why it’s one of the best business models for 2021. If you want to start a subscription business but have no idea on how to start from. There are a lot of ideas you can try out. Here are a few art supplies store, cleaning supplies, community delivery service, courier service, gift baskets, fashion and grooming service, candy and snacks box, deodorant and perfume subscription, grocery store and online magazine.

10. Influencer

The world has changed that now being an influencer is a business model. Thanks to the rise of content-based platforms such as TIK Tök, Instagram, Facebook and YouTube becoming an influencer has grown in popularity. There was a time when only famous people could be influencers, but now anyone who will step out of their comfort zone and deliver one can become an influencer. Brands pay influencers a fee for promoting a product. Often these influencers then create their products. The significant thing about this business model is that you can combine any of the other business models as your popularity increases.

Which business model do you want to try out for 2021 and why? Please comment below.