There is no such thing as a single business model

0

Every company is a software company. That is what you hear often when you talk with business owners and entrepreneurs. Is this a true statement or are we fooled by them? In my opinion many entrepreneurs are affiliated with software nowadays. It supports a product to work in the most optimal way. And do not forget the revenue generating business model of software. But is it the main item of their business model or just supportive to the bigger picture?

Single Business Model

There is no such thing a single business model. Businesses nowadays are unable to survive when they rely on just one business model. Look at the business model of Spotify for example. They make money in 12 different ways. They bring you the experience and joy of music on any device and any time you like. However this is not their only business model. Advertisements are just as important for generating revenue as the subscription model they offer to you and me. If your company is based on just one business model, you should be worried. This is not a surviving method when you compare this with other successful companies.

Hybrid Business Model

In my daily life working for Oracle NetSuite in am in touch with a lot of different companies. When we talk about business values it often comes to the table that those companies started of as a service company or a company that used to sell products. Nowadays those services and products are still part of their offering but there is more. The are sold combined with software contracts when we talk about services. Or services contracts (SaaS) Service as a Service sold combined with products. Or software sold combined with services and services based on a contract. You see! There is no such thing as single business model.