Smart Business Model for B2B, B2C, or D2C Ventures

By: Lubna Ali

Starting a new business or coming up with a new business idea that guarantees sustained value generation is the most challenging aspect in Pakistan other than in any country and region.

Today, new or existing business is challenged by rising pressures from market changes, competition, and consumer demands. Doing business is no longer a simple matter of selling a product or service locally and internationally. The value extracted by each new business needs to extend far beyond that to capture and maintain market interest.

Now selecting which business model to start with — business-to-business (B2B) , business-to-consumer (B2C), or direct to customer (D2C)— is an essential first step for any business.

Let me explain to you what a business model: It is a logical structure that supports the feasibility of the business. Designing a business model requires deep thought and analysis.

A business model provides a reason for the customer to choose the offering provided by your company over others. Business models focus on core strategy, customer interface, value network, and resources.

On the basis of the audience, Market Size, Price decision, value chain, and lifetime customer values. It can be argued that B2B, B2C, and D2C are vastly different frameworks and one simple and linear business model will not work at all.

As technology and customer behavior vary day to day, every businessman or enterprise must be concerned and take proper business framework to succeed.

There are so many Business models are available but Venture Studio is here to stay 

For those unfamiliar with the venture studio framework, it’s a new model for entrepreneurship, combining company building with venture funding. By design, venture studios play the role of matchmaker, linking business ideas to their talented counterparts to execute those ideas.

Venture studios help entrepreneurs grapple with the unknowns of building a new company by providing them with an initial capital amount and operational support. 

This business model — the venture studio — is taking a hold of the startup world with a proven track record to support its success. Over the last 7 years, the venture studio market has seen an incredible 625% growth.

Currently, there are 582 million entrepreneurs in the world which make the venture ecosystem ripe for venture studios searching for fundable founders and create substantially increases the odds of startup success.

Another reason for this shift has been the increasing competition of big platform monopolies with traditional enterprises. Over the last ten years, dominant platform companies – like Google, Facebook, Amazon and Alibaba – have become new business creation engines, using their existing networks and assets to spin out new businesses. They have, in effect, created their own internal venture studios focused on building new business models.

Google X, Alphabet’s startup studio for “moon-shots,” is one example of this, having created new companies like Waymo, Verily, Google Health and others. Other large tech companies like Amazon, Facebook, Uber and Alibaba have likewise setup entire divisions for entrepreneurial teams to create new startups.

Some success stories would be Google Video which helped validate the acquisition of YouTube, Uber creating Uber Eats entirely from scratch, and Amazon creating Amazon Web Services as well as Amazon Business, its B2B marketplace. Facebook has also launched Facebook Pages, Facebook Messenger, Facebook Marketplace, and many other new “businesses” within Facebook.

We need more innovative ways of building, growing, and investing in compelling new startups by offering the full scope of development toolkits, mentorship, and funding in empowering a more prosperous, sustainable, and democratized Pakistan.

Author Bio:

Lubna Ali is a Top Digital Marketing strategist and consultant in Islamabad. She helps startups, typically by providing the initial team, strategic direction to reach product-market fit.