50 Types Of Business
John Spacey, November 30, 2022
Business is the process of creating and capturing value. All viable businesses are based on a business model that represents a method for creating value for customers and capturing this value as revenue in a competitive market. The following are the basic types of business.goods and services from a physical shop.one stop shop offers significant variety such that customers can accomplish many things at the same place. For example, a supermarket that offers an extremely broad range of goods and services such as dry cleaning. monthly recurring fee. ecommerce capabilities in an integrated way. For example, a product showroom where you can try products and then order them online.bespoke implies the work of a skilled professional such as a tailor as opposed to a manufactured item. Production that is done by hand. This may result in premium items that can compete on quality.
Contract ManufacturingManufacturing goods to specifications for a fee. Contract manufacturers typically require a minimum production size and prices fall as you scale.unbranded products than can then be branded and packaged by retailers and ecommerce sellers.
Manufacturing as a ServiceA manufacturer that can quickly produce unique items to specifications in orders as small as one unit.
Design & MarketFirms that design their own products and market them under their own brand but contract out manufacturing. For example, a fashion designer who designs clothing and markets it under their own brand name.promotion, pricing and selling goods without handling any other part of the value chain. For example, a solar industry expert who generates sales leads and then sells them to installers.value added reseller takes the products or services of another firm and adds value to them. For example, a software company that offers a data analytics tool that is built on top of another firm's data analytics platform.
Original Equipment Manufacturer (OEM)The manufacturer of parts and components that go into the products of other firms. For example, a manufacturer of efficient electric motors that go into other products such as air conditioning units.consumable goods that consumers regularly buy such as food, cosmetics and beverages. This is an intensely competitive business dominated by large firms with deep competitive advantages such as widespread brand recognition.
Niche GoodsDeveloping products and services that meet relatively unique customer needs. This is a way for a small business to compete with far larger competitors that benefit from superior economies of scale. For example, a small local bakery that offers high quality wedding cakes.reuse of products and assets. For example, a carpenter who buys and renovates old houses for resale.automation without buying and managing hardware and software installations.
FranchisingA business that licenses a complete business. For example, a restaurant chain that provides everything required to open a restaurant location such as know-how, processes and branded products and services. This benefits the franchisor as they can expand profits without investing more capital. In theory, it can also benefit the franchisee as they are able to start a small business based on an established business model and brand.goods that have no physical form such as an ebook. Consumer services such as a restaurant, hotel or airline. Services offer primarily intangible value such as an experience.capital for an entrance fee. For example, a ski resort or a theme park.Business services such as a digital advertising platform.
Staffing ServicesOffering labor without the commitment of hiring employees. For example, a firm that offers temporary workers with basic office skills at a daily rate.
ConsultingConsulting is knowledge work that is offered to customers at a daily rate or as a fee for deliverables. For example, a software developer who develops an app to requirements for a flat fee of $40,000.
PaymentsServices that execute payments and money transfers. A basic foundation for all commerce.
InvestmentProviding advice and ways to put money to work. This implies some degree of risk taking.
Investment BankingFinancial services for institutions, companies and high-net-worth investors. For example, a bank that helps a company issue bonds or acquire a competitor.
ExchangesFirms that run financial markets such as a stock market or commodity exchange.Arbitrage only works well if you are far more sophisticated and fast than the average trader on the market.transfer risk for a fee.training such as tutoring or professional training.
EventsOrganizing and promoting events such as concerts or business conferences.
Import & ExportTaking advantage of differences in the availability and price of goods between different markets. This creates value by making goods available. For example, an ecommerce seller who imports entire containers of Italian shoes to sell in Japan.
WholesaleThe sale of goods to entities that aren't the end-customer. This typically involves buying goods in significant quantities, warehousing them and selling them in smaller quantities. For example, a food wholesaler who purchases large lots of meat, fish, vegetables and packaged products from geographically distributed producers and then sells them in relatively small quantities to local supermarkets and restaurants.
Good BusinessA business centered on making a positive impact on the environment and communities as opposed to being solely driven by a profit motive. Such firms have made inroads in competing with incumbent firms that may have poor reputations or be inauthentic in their attempts to look green to conform to modern values. In theory, societies will eventually do what is in their best interests and penalize the production of economic bads. This should favor good businesses in the long run.
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