Establishing a business model helps lay the foundation on which to build a solid and consistent value proposition for customers.

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In general, a business model is understood as the way in which a company creates value and delivers it to its consumers. In practice, a company's business model is also the method with which it generates income for the product or service offered.

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Currently, and for some years now, due in part to the rise of digital technologies, the types of existing business models are increasingly varied. It should be noted that a company's business model is not something immovable, but must be able to adapt to the needs of the company itself and those of its consumers. That's why it's important for a business model to be scalable, which will allow the company to continue to grow.In today's article, we analyze the most common types of business models that a company usually adopts:

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‍Business-to-Consumer (B2C)

‍It includes the sale of a company's products or services to private customers, through, in most cases, mobile applications or websites. -Main advantages: In general, products or services are aimed at a wide market and are purchased with some recurrence. -Main drawbacks: The average ticket is usually lower than that invoiced with other business models, as does the degree of loyalty that customers show to the brand.

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‍Business-to-Business (B2B)

‍It includes the transactions that a company makes when selling its products or services to other companies (legal entities). Sometimes, the same company can offer its products or services to both private customers and large corporations (either under the same conditions or under different conditions) .-Main advantages: Customers, who tend to purchase products or services with a medium-high ticket, encounter barriers when it comes to changing suppliers, making it easier for companies to forecast their long-term revenues more accurately. -Main drawbacks: Sales cycles are longer than in other business models, since customers are more demanding and the decision does not depend on a single person.

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‍Business-to-Business-to-Consumer (B2B2C)

‍It integrates the operations that occur in B2B and B2C, where the company groups the products or services of another company and offers them to end consumers. -Main advantages: Companies have the opportunity to have their products purchased by a larger segment of the market and it reduces the risks involved in operating without an intermediary. -Main drawbacks: Once the market is mature, companies that want to get rid of the intermediary figure may encounter barriers and difficulties when scaling their solution to other segments.

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‍Business-to-Employee (B2E)

‍It includes the purchase-sale transactions that take place between a company and its employees. Thus, companies make use of internal communication channels (such as their own Intranet or corporate email) to offer their products or services with discounts or special conditions. -Main advantages: It makes it possible to dispose of the surplus of certain products and helps to strengthen the company's relationship with its employees. -Main drawbacks: The unit income received is lower than when the product is sold on the market under normal conditions and does not allow the company to obtain additional information on how the market responds to that product.

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‍Business-to-Investors (B2I)

‍It includes the relationship that is established between companies and investors. Companies that operate under this business model base their activities on presenting projects to investors for subsequent analysis. -Main advantages: Investors access projects already filtered following certain pre-established criteria and the fact that platforms allow access to information from several companies or projects makes it easier to make investment decisions-Main drawbacks: The projects presented compete with a large number of different projects, which hinders opportunities to attract investment. Likewise, there are other business models, although less frequent, with which a company can deliver its products or services to their consumers, such as B2A and B2G in this case.

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‍Business-to-Administration (B2A) and Business-to-Government (B2G)

‍It includes the commercial relationship that is established when a company provides a service to meet the needs of the Public Administration or government entities. In addition, there are other business models where, unlike the previous ones, the supplier is not a company or corporation that carries out a business activity understood as such. Among others, we find:

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‍Government-to-Consumer (G2C) or Administration-to-Consumer (A2C) and Government-to-Business (G2B) or Administration-to-Business (G2A)It includes the procedures that the Government or the Administration allow individual citizens or companies to carry out electronically, respectively. The payment for these services is also made through the electronic platform that the entity makes available to users. In these cases, the payment of fines and fees is one of the most common examples.

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‍Consumer-to-Business (C2B)

‍It includes those transactions where it is the final consumer who establishes the conditions of sale and it is therefore the company itself that makes the payment to its consumers, and not the other way around. Affiliate programs, the payment of influencers for marketing and advertising actions, and paid surveys are examples of the C2B business model.

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‍Consumer-to-Consumer (C2C)

‍It includes commercial relationships that are established between two consumers or private customers. These relationships do not exclude the possibility of an intermediary participating to facilitate the purchase and sale of the desired products. Thus, it is an individual who sets the sales price and it is also individuals who purchase the products.

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More: Main financial institutions for Spanish startups at the regional level.