Search

[Profitable Business Model ]What is the most profitable business model ever made? according to different opinion

[Profitable Business Model ]What is the most profitable business model ever made? according to different opinion




Before we start Profitable Business Model Some Motivation with Example of a company in which way they are doing business and which Business Model follow

Image of [Profitable Business Model ]What is the most profitable business model ever made? according to different opinion
Image of Profitable  Business Model

The beauty of doing business is that if you have thought out your business idea ONE does not require Money. You can have your “ empire” without the hassle of ownership & payment of full-time salaries.

Look around you & you would see the under “BEST BUSINESS MODEL as under :

a. Google has NO FACTORY & never buys any office property -yet is one of the largest companies on Planet Earth?


b.Apple that sells electronic devices OWNS NO FACTORY & is one of the largest sellers of smartphones & computing devices-yet is one of the largest companies on Planet Earth?


c.Does Amazon own factories & godowns & office -everything is rented & outsourced-yet there are BILLION of items they sell-yet is one of the largest companies on Planet Earth?



d. Does UBER buy cars &own cars? It does more than a MILLION trips daily & is the world’s largest transportation firm on Planet Earth



“In Life -Take Risks -if you lose you can Advice-if you Win you can Lead



In REALITY, no one loses or wins all the time -so you will end up both Leading & Advising 

Swami Vivekananda



The beauty of doing business in India OR one’s original country is that if you have thought out your business idea ONE does not require Money.


First Business Model [Hub and Spoke Business Model] with example 


In this model what you do is a have core product (let us say pizza) where you have a low or even negative profit margin.

 This cheaper but quality product allows you to be able to gain business and sales more easily even when competitors have similar or better products.

Although you don't make much money (or any sometimes) off the hub, what happens is that you offer several 'spokes' which are high-profit margin services/products. 

So lets call this (wings, molten chocolate cakes, 2 liter of Dr. Pepper). So they buy the pizza and then add on the extras so they have a complete product (all in one to place 

which makes integration and ease of use higher) and you're making high-profit margins off the spokes but brought them in for the hub (cheesy delicious hub).

This model allows for multiple options for different types of company. Some will be allergic to wings or hate 

Dr. Pepper, well great, you can still sell the hub and one spoke (because who doesn't love molten chocolate cakes) and still make a profit and have a satisfied customer.

Jordan Solomon actually pointed out that this has been the model that has been constantly growing over the last few decades, because of its ability to break the psychological burden of “big” ticket items.

Some of the fastest-growing Saas companies and 'Unicorns' have unleashed this model recently and are having extreme success, such as:

Few  Company who make a profit from this Business Model

Zenefits
Gusto
Tinder 
(free dating app, spokes include Tinder premium, Boosts, etc)

Evernote (I know dying, but still, great idea had they developed better spokes)



After Hub and spoke Here 15+  business Model Choose for your Business which one suits you
 

1) User / Payer

Any business where the user and the payer are two different persons


2) Razor / Razorblade

"Give away" the equipment and make (a lot of) money on the consumables



3) Government

What better business than a monopoly, enforced by the police and the military, which can collect whatever toll it sees fit? :-)



4) "Toll bridge"*
 (literally or figuratively)

Gotta pay your dues if you want passage!



5) "Consumer monopoly"*

Try to make a Coke fan drink Pepsi, or a Marlboro fan smoke another brand of cigarettes!



6) Lowest cost producer or retailer

Hard to beat guys like Costco!



7) Religions and cults

People are willing to die for you (literally), give you their life savings, entrust you with their souls, etc.



8) Psychoanalysis

You can never really be cured, and for some reason, it helps you heal to pay $300 an hour in cash :-)



9) Rollups (when they work...)

Buy a business for 5x EBITDA, integrate it within a 10x EBITDA business, and extract plenty of synergies!



10) OPM (other people's money)

"Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway"*

In some cases, you can even be paid "performance fees" ... even though you lost money for your clients :-)



11) Invent something and live off royalties

I actually know a guy who still lives off a two-second advertising tune he made up for a company 15 years ago




12) Anything related to weddings

Now that you've spent $5,000 to rent a venue, what's another $500 for flower arrangements, $700 for a photographer, $150 for a bow tie (you'll probably never use again), etc



13)  toddlers

You wouldn't want the flesh of your flesh to have anything less than 5 pairs of pants a day, would you?



14)or gift certificates

A sizeable part of them are never used but the company keeps the cash anyways; also a big generator of float

Source: (*) Warren Buffett, (**) Ken Fisher




According to Forbes, the 5 most profitable companies are:

Apple
JP Morgan
Berkshire Hathaway
Wells Fargo
Alphabet
You notice a trend?

Yeah the most profitable business model ever is NOT the Apple iPhone. Apple is a recipient of a winner take all effect. 

Good luck trying to replicate Apple’s business model. They’re what we call an outlier.

The most profitable business model is “compounding interest” and that’s how banks make money. JP, WF, and Bank of 

America all charge you and I compounding interest for houses, cars, and Christmas shopping.

If you want to grow your wealth you too can take advantage of this beautiful think called “compounding interest”. It’s the most elegant business model of Capitalism.


About franchise model with an example 

I think the franchise model is pretty compelling. It's really more of a layer of strategy that organizes and leverages just about any other type of model.


 It adds the advantages of getting paid upfront by a franchisee (not unlike a term insurance premium);


 and retail landlord rents including lease or sublease and a performance rent based upon net sales; and, 

opportunities to sell the franchisee the supplies they'll need and the products they might resell.


As the network grows, the franchise builds purchasing power with its own suppliers and develops street cred for the brand. 


That makes it easier to find more franchisees. Using other people's money, some franchises (Subway) rapidly develop thousands of outlets. Sandwich shops! Who knew?

In addition to the benefits of the underlying root model and products and services, the franchise model diversifies revenue streams and profitably spreads risks.

About the only downside to this model is that it's possible to succeed too well and attract too many franchisees.

Franchise models often produce respectable double-digit margins, even when they're very mature and have been cloned by competitors. 

McDonald's is an example of an old franchise with many copycats and great margins.

After Business Model the Best Business Strategy to implement in your startups and Business

The best business strategy is to figure out in Business Model

Something that will be very valuable in the future.


Something most smart people do not think will be very valuable in the future.
Something you have a real advantage doing.


If you find a business that fits all three criteria, you have a very good chance of building a massive business.

Of course, it is really hard to know what will be valuable in the future 

(criteria 1)
 As the future is very hard to predict.

But the good news is, it is much easier to figure out criteria 


2 (something people do not think will be valuable) and criteria



 3 (something you have a unique advantage in)

 if you are honest with yourself