When you’re considering starting a service-based business or growing an existing one, it’s important to understand the different types of business models you can use. Understanding what each one is for and how they best operate will help you to determine how to choose what’s best for you and your business. The five in this article are the primary foundation models. There are other models, but upon close review, any other models are merely a hybrid of these five. The five covered here are: One-on-One Service Model, Coaching/Consulting Service Model, Information Products Service Model, Licensing/Franchising Service Model, and the Membership/Continuity Program Service Model.
The first foundation business model is the One on One Service Model. In this model you deliver your service or services to clients on an individual basis. This is a very broad model and this is where almost everyone starts out and there’s a good reason for that. Some examples of professionals where you see this business model are insurance and financial professionals, real estate agents, plumbers, electricians, landscapers, wellness professionals, designers, entertainers, physicians, attorneys, etc. Each of these provide a service to their customer. This is a great model to start with because it requires little or no inventory. It is generally a fast start up with little capital required and you don’t generally need much staff, if any, to provide the service. On the flip side, this can be a very time intensive model and one where you are trading hours for dollars.
The next model is the Coaching or Consulting Service Model. You might think that this is the same as the one-on-one model and yes, there are some similarities. In this model, however, you are providing service as a consultant or coach to clients on an individual and/or a group basis. For this model, your expertise in your field IS your service. You might be a medical professional where you see patients and that would be a one-on-one business model. Now, you could also be a medical professional that consults other medical professionals how to provide their service, structure their practice, build their business, etc. And, as I mentioned a moment ago, you can provide this service in either a one-on-one situation or a group setting. Common examples of this model are life coaches and business coaches, business development consultants, strategy consultants, and trainers.