You have a business idea, the resources to get it off the ground, and the determination to run your own business – this is a good start. However, it’s not enough. After all, the key to a successful business is to meet your customers’ needs. And the Internet is the best tool to research them.

As an Internet user, you know the power of the web. At least once you’ve checked online reviews of a restaurant you’ve been meaning to go to or an unfamiliar store that’s running a special promotion on the perfume you’ve been looking for. It’s also the easiest place to find a top-rated plumber, pediatrician, etc. So you know that potential customers are looking for information about products and services online. Take an example from them but reverse the roles!

Social media

Social media is a goldmine of knowledge about companies and potential customers, even if your target audience is the elderly, many of whom don’t know how to navigate the web. Remember that seniors often don’t do shopping themselves, but their families do it for them. How to use social media for market research?

Just ask what people are missing in a particular industry and what bothers them. Go where you can find a lot of people online. Visit forums, join community groups on Facebook, and ask questions in the comments on YouTube or TikTok. Of course, these shouldn’t be random places. Choose them based on your target audience. Opening a bar? Visit community groups in your city and find out what they are missing in the food market. Maybe sugar-free cakes, gluten-free dishes, vegetarian options, less pizza, and more local cuisine.

Surveys

Gathering information from online forums and community groups requires collecting all the information in one place afterward. This can be time-consuming, especially if you have a large number of questions. A convenient alternative is to ask for a short survey in the same places. Even at this stage, you can mention that you are planning to open a new business and offer respondents a discount on future services to encourage them to take the survey.

Google Surveys may come in handy here. This tool is quite popular, so people don’t usually have trouble using it. In the form, you can ask potential customers what they miss in a particular market, what prices they think are appropriate for a particular good or service, etc. Make sure to include a question about gender and age in the survey. This data will be useful for you to determine the habits of consumers from a particular group.

Niche market

Based on the obtained information, try to find your own market niche. What is it? The term refers to a narrow segment of the market that has not been satisfied. For example, if there are a lot of restaurants in your city, but none of them offer gluten-free dishes, then your niche would be people with celiac disease.

Market niche refers to specific needs, as general ones are usually met. Hairdressers usually offer occasional updos, haircuts, and coloring, but not everyone can braid dreadlocks. Of course, there will be far fewer customers for the latter services than for the former, but remember – these customers are capable of traveling many miles to get what they are looking for. And they are eager to tell their friends about finding a place that offers these services!

How to do a competitive analysis?

It’s a good idea to compare information about your customers’ expectations with data about your competitors and their offerings. How to go about it?

1. Find your competitors

Make a list of your competitors. If you’re planning to sell products online, then the easiest way to do this will be to enter a specific product group in a search engine. Prepare a table with two groups of companies, those that rank high in search results, and those that appear a few search pages away. This information will be useful for later analysis of your marketing strategy.

2. Set the criteria

Every industry has its own rules. Different criteria will be relevant for software developers and others for DIY jewelry retailers. However, there are common elements that should always be included in a competitive analysis:

• Communication channels – does your biggest competitor promote itself with funny videos on TikTok or flyers?Offer transparency – does your competitor provide a specific price list or offer individual pricing? Does it specify the exact scope of its services? Does it have a website and social media? What do they look like?
• Customer reviews – regardless of whether a company operates online or onsite, there will always be opinions about it on the Internet. This applies not only to its customers but also to its employees. Employees’ honest words can reveal a lot of useful information about the mistakes made by a particular entrepreneur.
• Online availability – if your strong competitor is not present online, you may be facing one of two situations. You have either found your niche, or your audience simply does not use the Internet. Find this out!
• Marketing efforts – track your competitors’ past ads, promotions, and discounts. Find out which ones were well-received and which ones were not.

Summary

Remember that you should continue to do both competitive analysis and market research on a regular basis even after you start your business. It’s a good idea to track what your competitors are doing from time to time and find a new niche. Consumer needs can change very quickly, as can leading trends. Regular analysis can help you “stay in business” and become even more established in the market.

If you like our content, join our busy bees community on .

Famous startups that pivoted – table of contents:

1. Can everyone pivot?
2. Netflix
3. Starbucks
4. PayPal
5. YouTube
6. Summary

Can everyone pivot?

Matching the products offered to the real needs of consumers is beneficial for the development of any type of business. We have already emphasized how important it is to maintain a high level of flexibility in business operations. Still, you should remember that while pivoting brings many benefits for both customers and the business, at the same time it also involves a certain amount of risk.

There is no one-size-fits-all recipe to guarantee pivot success. For each startups in the market, there’s a different suitable pivot plan. When deciding to pivot, companies must therefore initially have a good understanding of the goal they wish to achieve with this type of practice, as well as the very nature of the target market and the buyers operating in it.

The basis of an effective pivot is the proper and thoughtful alignment of activities with specific, clearly defined goals while taking into account all detected inconsistencies between the product vision created by the company and its customers.

The following are some of today’s most popular “pivot startups,” which were originally intended to stand out with a slightly different business model compared to that of today’s global market.

Netflix

The company is by far one of the most recognizable brands in the movie and series streaming platform community. However, Netflix’s business model has not always been based on the same original assumptions.

The company started in the market in 1997 as an online DVD rental service. Initially, the business revolved around a virtual catalog of available discs that customers could borrow via traditional mail. Ordered titles were then delivered to homes in a recognizable red envelope.

However, Netflix was not the only company of its kind startups in the market. Although the brand tried to distinguish itself from the competition by delivering the biggest blockbuster movies in large numbers or by additionally introducing the “Like it – keep it” option, i.e., the ability for customers who initially only rented individual discs to purchase them permanently, Netflix still needed improvements that would allow it to make a permanent mark in the history and memory of its customers.

In 1999, Netflix was the first to start providing movies in a subscription model. At the same time, one of the most common problems reported by customers concerned penalties for holding on to particular titles. That’s why Netflix decided to turn to a new business model, which focused on providing users with a certain number of discs without specific time limits.

Over the years, the company has introduced new features, taking advantage of the potential of emerging modern technological solutions. The apparent increase in demand for services provided exclusively in a virtual way motivated Netflix to start streaming movies, as well as series on the Internet. Admittedly, the company did not abandon its previous form of business right from the start.

Even after moving much of their business to the Internet, more traditional customers were still able to take advantage of a combined subscription option that allowed them to rent movies through the mail. Such thoughtful pivoting provided an opportunity to gradually accustom consumers to the progressive change, minimizing the risk of losing regular customers. On the one hand, those hitherto attached to the brand and the way it operates in the market were more gently introduced to the rapidly evolving virtual world, while on the other hand, customers desiring change were given a helpful tool to meet their new needs.

Starbucks

A global giant, often identified as a supplier of top-quality coffee, while caring about strengthening the idea of sustainability. But has Starbucks always looked exactly as it is perceived today by millions of loyal customers?

The company was founded in 1971 by Jerry Baldwin, Gordon Bowker and Zev Siegel. The entrepreneurs initially based their business solely on the sale of coffee beans and coffee-making machines. In its early years, Starbucks, more than a trendy coffee shop, resembled a coffee roaster.

Everything changed under the vision of Howard Schultz, who began serving as president and CEO of the entire brand. While traveling in Italy, Schultz fell in love with Italian coffee culture. Fascinated by the taste of the beverage and the accompanying ritual of proper preparation and consumption, he decided to bring this tradition to the United States.

Starbucks began to center its strategy not solely around the coffee itself but also around the entire ambiance associated with its consumption. The company designed all locations in such a way that customers could enjoy the taste of the coffee prepared for them in complete comfort while having a nice time with their loved ones.

The introduction of all these changes in Starbucks’ business model has become a kind of response to the growing needs of customers. A hedonistic society is constantly looking for new forms of entertainment. By pivoting, Starbucks has added a new dimension to ordinary coffee drinking, for many becoming an icon for combining mundane activities with greater pleasure.

PayPal

The company is a perfect example of a zoom-in pivot that focuses mainly on one well-defined product functionality. Currently, PayPal is one of the largest processors of various types of online payments. The aspects that set this brand apart in the market are the ability to make payments and receive transfers without the requirement to share your personal or financial information.

PayPal began its presence in the market as a platform responsible for sending money. Over the next few years, eBay took over, expanding its reach to an international scale.

However, even with the subsequent discontinuation of the cooperation it had established with eBay, PayPal did not slow down the pace of its development, continuing to conquer new markets. As a result, it became an independent brand, successfully adapting to the emerging virtual world of apps and online banking. The company, which debuted as a business specialist in digital security, has now moved away from general services, focusing all its resources on providing the most secure transactions possible.

YouTube

Today, YouTube is the most popular platform where millions of users from around the world share short videos. However, the brand’s original business model targeted completely different areas of customer interest. “Tune In, Hook Up” was the first unofficial slogan to promote the YouTube dating service, which launched on Valentine’s Day 2005.

Despite efforts and the introduction of many user incentives, the brand was not successful as a dating site. The service had few visitors, which was affected by the lack of free video selection. Despite the initial assumptions of the creators, users began to insert videos about everything en masse. They published footage of themselves, their talents, friends, and family, those depicting both happy and sad moments, leading to a sense of strong virtual community among users.

Such a response motivated YouTube’s originators to move away from the idea of a dating portal and create an open platform where anyone could share anything they felt at any given moment. Thus, it can be said that the users themselves ultimately decided the structure of the entire platform.

However, this is not the only pivot the brand has decided on. Recently, another twist in the overall business strategy was noticeable. In addition to previously completely free access to published content, YouTube has additionally introduced a paid subscription option, where, for a set monthly fee, users can enjoy additional premium features.

Summary

The business world provides us with many examples of startups that avoided total failure through pivoting. Netflix, Starbucks, PayPal, or YouTube – each of these businesses pursued different strategic objectives as a startups than they do today. A rational assessment of the situation and the needs of customers allows one to take a broader perspective and adjust actions in such a way as to simultaneously effectively achieve one’s goals and bring consumers maximum satisfaction with the product or service provided.

Read also: 5 proven business models for startups

If you like our content, join our busy bees community on .

How much do CFOs make? – table of contents:

1. CFO, or who?
2. How much do CFOs make? – average earnings of a CFO
3. Salary isn’t everything
4. What determines CFO’s earnings?
5. How to become a CFO?
6. How much do CFOs at the biggest companies earn?
7. CFO earnings, and their responsibilities

CFO, or who?

A chief financial officer deals with everything in an organization that concerns cash flow, financial planning, and tax issues. This person usually holds the highest financial post and the second – after the CEO – position in the company, playing the key role in the strategic initiatives of the company. We’ve written more about this topic in a separate article, so today we’ll focus on how much do CFOs make.

How much do CFOs make? – average earnings of a CFO

, which analyzes the salaries of various positions in the US, published information that in 2021 the median salary of a CFO was $393,377 per year.

A quarter of the lowest-earning CFOs should expect to earn $299,442 per year, while the top earner should expect to earn approximately $499,992 per year. For comparison, the earnings of full-time employees in the United States were $51,168 per year. What does this mean? The CFO earns almost eight times as much as the average worker.

Salary isn’t everything

Salary.com research shows that base salary and bonuses account for about 80% of the total compensation they receive in a given year. Additional benefits may also include a company car or driver, an extensive severance package, coverage for expenses such as moving, use of a private jet or helicopter, and first-class flights.

In addition, high-level executives frequently have access to disability and life insurance. Workplace perks may include a dedicated parking space, large offices as well as a private bathroom.

What determines CFO’s earnings?

As we presented above, the spread of a CFO’s paycheck can be significant. How much will ultimately flow into his account depends on several factors. Among others:

• professional experience,
• education,
• the size and type of company,
• the city in which the company operates.

The salary of a CFO of a small company in a county town will significantly differ from that of a CFO of a corporation in a capital city.

How to become a CFO?

Usually, it is a combination of extensive professional experience and good education. Many CFOs have several years of work experience in the finance sector, a master’s degree or higher and an MBA.

This is not the rule but often CFOs have previously held positions such as a controller or were certified public accountants (CPA).

Here we can also use data from salary.com, which analyzed this issue. It turns out that in the U.S., about half of CFOs have a master’s degree and 45% have a bachelor’s degree. However, only 2% have a doctoral or post-doctoral degree. And 1% of CFOs finished their education with a high school diploma.

How much do CFOs at the biggest companies earn?

At Apple, CFO Luca Maestri, earns $1 million a year, according to executive compensation tables posted in public documents. Most of his compensation comes in the form of stock, which was worth more than $21 million in 2020. His total compensation for 2020, including retirement benefits and other compensation, was worth $26,253,270.

Microsoft’s CFO, Amy Hood earned $975,000 in 2020. Additionally, she earned $14,792,679 in stock-based bonuses and $3,734,981 in non-equity compensation. Hood’s total 2020 earnings were therefore $19,626,234.

CFO earnings, and their responsibilities

CFOs oversee the financial operations of companies. They are leaders in the accounting and finance departments. They ensure that organizations run smoothly and comply with applicable laws and company policies. Their work is essential in creating a favorable image for the company while saving money in every way possible.

Chief Financial Officer – Responsibilities:

• Provide leadership to the finance and accounting departments.
• Coordinate the administrative, business, accounting, and budgetary activities of the company.
• Directly or indirectly prepare financial statements, business activity reports, financial position projections, annual budgets, and/or reports.
• Develop internal control guidelines, policies, and procedures for activities such as budget administration, cash and credit management, and accounting.
• Oversee departments involved in purchasing, pricing, investments, taxes, debt management and billing/receivables.
• Prepare reports for senior management.
• Conducting research and audits on the consistency of company departmental activities.

The CFOs must have both analytical skills, create calculations, and reports, operate accounting software and have advanced knowledge of accounting, budgeting and finance. In addition, they should also have skills in public speaking or human resource management.

For many people, especially those working in the financial industry, CFO is a professional dream, not only due to the high salaries. However, it should be remembered that behind high transfers there are usually years of learning, work, and sacrifices.

After the topic “How much do CFOs make?” these articles may interest you:

• How to become a CFO?
• 7 important startup roles explained

If you like our content, join our busy bees community on

How to become a CFO? – table of contents:

1. What is the role of a CFO?
2. CFO skills
3. CFO education
4. CFO career path

What is the role of a CFO?

A career in financial services is a dream of many people. Employees who start working in finance departments often aspire to reach the highest positions, and eventually become a CFO. The CFO (Chief Financial Officer) is responsible for managing the company’s finances.

Their duties include tracking cash flow, analyzing strengths and weaknesses of the company to propose corrective action plans when necessary, and preparing accurate forecasts. These actions are taken so that the management could make decisions on issues regarding future investments or budget cuts.

The role of the CFO goes beyond the traditional view of the accountant – the person who counts a company’s financial resources. A modern CFO uses financial analysis to either support or challenge a company’s key decisions, as well as formulate its strategy. An important factor in these processes is the business environment in which the company operates, hence the CFO must constantly interact, observe and communicate with it.

CFO skills

How to become a CFO? If you want to become a CFO, you should posses certain qualities that will allow you to consciously and effectively hold this position. Both hard and soft skills are important. Surprisingly, it is not enough to have analytical skills only to become the CFO.

Key skills of the CFO include:

• Leadership skills – The CFO must possess necessary leadership and communication skills. They must be able to analyze the financial situation of the company, advise and support all employees, both those reporting to them in the financial departments and those on the board of directors, as well as other leaders. What is more, they should provide advice to all employees who have questions in their area of expertise.
• Operational skills – The CFO must have a good understanding of both the internal and external environment of the company. They should be able to use this knowledge to provide an independent perspective and constructively manage the company’s financial processes.

• Controlling and analytical skills — In an increasingly global and volatile environment with additional regulatory burdens, it is often the CFO’s job to ensure that risks are properly assessed and mitigated, as well as to check compliance with applicable regulatory and other legal requirements.
• Strategic skills – The CFO supports the strategy development and its execution on a daily basis. They set priorities and ensure that the strategy is in line with all processes taking place in the company.

How to become a CFO? The CFO, apart from predispositions stemming from their personality, should also possess certain skills acquired through education and work experience.

These include:

• proven experience as a CFO or in a similar role,
• in-depth knowledge of corporate financial law,
• excellent knowledge of data analysis and forecasting methods,
• proficiency with financial management software,
• ability to develop strategies and solve problems,
• strong leadership and organizational skills,
• excellent communication and interpersonal skills,
• analytical mind that works well with numbers.

CFO education

Typically, a CFO will have a college degree and technical accounting qualifications such as CPA, ACCA, CIMA. However, leadership and communication skills are increasingly important. People with a master’s degree in accounting, bookkeeping or finance often become CFOs. It is also worth thinking about MBA studies – Master of Business Administration with emphasis on Accounting/Finance or Master of Science in Finance (MSF).

CFO career path

How to become a CFO? Most CFOs have experience in such departments as financial planning and analysis, control and treasury. This can be achieved either through promotion and adopting senior roles within the company or time spent at an accounting firm before moving into the industry.

Today, the role of the CFO can’t be limited to data analysis. CFOs must recognize the risks and opportunities behind the financial data and act as a strategic business partner to the CEO. However, in order to do this, they need to possess strong leadership and communication skills. A good chief financial officer is key to the success of any company, and a bad one may cause that organisation to fail.

Now that you’ve learned how to become a CFO, read also about what a CFO does and startup roles.

If you like our content, join our busy bees community on

The chief financial officer is a senior-level manager who is responsible for managing financial operations in the company. This is an extremely important function, second only to the CEO or chief executive officer.

CFO’s roles and responsibilities

The chief financial officer is responsible for ensuring that the organization has adequate resources, which it then will allocate to achieve its goals. As part of this responsibility, the chief financial officer engages in several tasks to oversee the financial affairs of the entire company. The chief financial officer’s key duties may include:

• tracking financial operations in the organization,
• analyzing the profitability of planned and undertaken tasks, as well as proposing corrective and improvement actions,
• directing and overseeing the work of the financial department,
• assessing the financial risks and possible profits,
• contacting with stakeholders, e.g., bankers, investors,
• making recommendations on mergers and acquisitions,
• approving financial reports,
• advising other directors on strategic matters relating to the company’s finances.

The role of a chief financial officer has changed considerably over the years. Initially, the CFO’s responsibilities were limited to overseeing accounting issues. Nowadays, people in this position are expected to support and advise on shaping financial strategies.

The scope of the chief financial officer’s responsibility has also undergone a significant transformation. After all, the success of executed projects, or even the development of the entire organization by obtaining the necessary funding, depends on the chief financial officer’s outstanding performance. As a result, the CFO is responsible for balancing two goals: maintaining profitability and building long-term value for the company.

How much does a CFO earn?

How much can CFOs really earn? According to salary.com, the average income of the chief financial officer in the U.S. in 2023 is $429,392 per year, while the estimated salary range is $230,536 to $661,463 per year.

Slightly lower figures were reported by glassdoor.com. According to their calculations, the chief financial officer in the USA earns between $206,000 and $630,000 per year, with an average income of $355,754 per year.

As you can see, the range of salary forks is quite wide. So what does the CFO’s salary depend on? Factors that influence it may include work experience, education, size, and type of company or location.

However, it’s worth underlining that apart from the base salary, chief financial officers can often expect to receive various bonuses, for example, incentive payments, benefits, life insurance, shares, and bonds. According to the aforementioned portal, such bonuses may amount to as much as 20% of the whole salary.

Chief financial officers may also enjoy other, less popular privileges. For instance, some companies offer relocation benefits, first-class flights, or company cars.

CFO salaries in Apple and Microsoft

Let’s take Apple and Microsoft as an example. What salaries do they offer? According to pay tables published in public documents, Luca Maestri, Apple’s chief financial officer earns $1 million a year (base salary). Most of his salary, however, is in stock, which was worth more than $21 million in 2020. His total salary for 2020, including retirement benefits and other compensation, was worth $26,253,270.

Amy Hood, Microsoft’s chief financial officer, earned $975,000 in 2020. In addition, she received $14,792,679 in stock and $3,734,981 in non-equity compensation. In total, the chief financial officer’s earnings were $19,626,234 in 2020.

How to become a CFO?

It’s not surprising that the CFO’s earnings may encourage many people to choose such a career path. However, before you take any steps, it’s worth having a look at the skills that a candidate should possess to perform this job.

CFOs should have both hard skills and soft skills. For example:

• Leadership and communication skills – chief financial officers collaborate with various people, for example, coworkers from the financial department (whose work they must coordinate), the board of directors and managers, as well as representatives of other institutions. For cooperation to be effective and efficient, the chief financial officer must be able to clearly express their expectations and actively listen to the other person,
• Operational skills – the chief financial officer must have a good understanding of the company’s internal and external environment and be able to use this knowledge to create an objective and thoughtful strategy for managing the organization’s financial processes,
• Analytical skills – chief financial officers must analyze and monitor undertaken actions so they can anticipate and respond to potential problems and crises or minimize risks. They should also keep abreast of legal changes and be able to draw conclusions.
• Strategic skills – developing a financial strategy is a challenging and responsible task, as the success of the company depends on it. The chief financial officer must be able to set priorities and ensure compliance with all the company processes.

CFO’s education and experience

Apart from individual predispositions, chief financial officers should also possess certain skills gained through education and work experience. CFOs are usually finance accounting, or economics majors. In addition to a master’s degree, post-graduate studies and certified courses to prove specific qualifications, such as the Association of Chartered Certified Accountants (ACCA), Chartered Institute of Management Accountants (CIMA), or Chartered Financial Analyst (CFA), are appreciated. Studies like Master’s of Business Administration (MBA) or Master’s of Science in Finance (MSF) are also worth considering.

When taking on the position of the chief financial officer in the company, it’s useful to have experience not only in the industry but also in other departments where you could gain leadership and communication skills. For this reason, chief financial officers can be people who have worked in financial and accounting teams.

If you like our content, join our busy bees community on

Product Hunt – table of contents:

1. What is Product Hunt?
2. Design you campaign
3. Lauch your product
4. Product Hunt – what can you gain
5. ż­·˘k8Ć콢Ěü on Product Hunt

What is Product Hunt?

Simply speaking, Product Hunt is a platform where entrepreneurs can promote their products. Community of Product Hunt brings together mainly enthusiast of new solutions and individuals searching for tools to facilitate their work. The Product Hunt platform enables all the participants to upvote much-liked products and leave feedback.

Individuals visiting Product Hunt show a range of needs and expectations, which allows each startup to reach its target group. It is worth to mention that Product Hunt is not an inclusive in relation to the markets – it is available not only in the USA. Global coverage of the platform is a reason to try out its capabilities.

Time logging allows to divide actions and isolate those basic, repetitive ones, which we have to perform each single day. We may tick them off more quickly and efficiently.

Design you campaign

Before you start your adventure with Product Hunt design your campaign carefully. Your success depends greatly on detailed preparation.

Build a community. To advertise your product on Product Hunt you should firstly create a good personal brand and spark an interest of your audience. Try to acquire followers, take part in debates on the platform, make comments and mark other products – be reliable.

Advertise your product. Each day, during the lunch time, advertise your product. Use different forms of communication such as:

• Social media posts with your announcements
• E-mails to prospective clients with the information about recent activities
• Sponsored posts on blogs and social networks’ pages
• Consider paid promotion and paid advertising offered by Product Hunt platform

Lauch your product

And finally the time has come for the most important action, which is the launch of your product. The success of your product on the Product Hunt platform depends on the first 24 hours of the start of your campaign.

The first five products with the highest amount of ratings, comments, upvotes are on the top of the list and get the “Product of the day” badge.

As long as your product is on the top position of the list observe the campaign and try to keep your high rank as long as possible. It is advisable to regularly monitor all the comments and ratings and frequently interact with other users of the portal. Prompt responses to all comments related to your products are not only visible expression of your involvement and a nod towards your audience, but a real chance to influence the ruling algorithms of the page.

Product Hunt – what can you gain

There are many tangible advantages of using the Product Hunt platform – your product may easily gain popularity, you may get new clients, and the feedback of the community is instantaneous.

A lot depends on the quality and functionality of our own product, but your efforts will be rewarded as long as you put enough hart into creation of your campaign. Both the innovative idea and the ability to convince your audience are the key to success.

ż­·˘k8Ć콢Ěü on Product Hunt

ż­·˘k8Ć콢Ěü.com is currently present on the Product Hunt platform. All important functionalities of ż­·˘k8Ć콢Ěü.com may be examined on the Product Hunt platform. See for yourself how much you can gain by choosing our product.

The launch of our product on Product Hunt was on 28th of February and it received the third „Product of the day” badge. You can still leave a comment and rate our product, to which we strongly encourage you.

Read also: Instagram advertising what do you need to know

If you like our content, join our busy bees community on and .

Business Models for Startups – table of contents:

• What is a Business Model?
• 5 Proven Business Models for Startups

What is a Business Model?

First, we should define a business model as a way an organization (e.g. a company) creates, delivers, and monetizes its value through products or services.

In each case, the business model requires the adaptation of activities characteristic to its organization. For example, the e-commerce sector company will implement a different model to the one operating stationary and the one delivering a physical product will function differently than the one offering digital items.

The stage of development of a given enterprise is also important for the selection of a business model.

5 Proven Business Models for Startups

1. Platform

Today, platforms are a particularly attractive business model – both in terms of customer needs and the tools available.

The former appreciates the possibility to make decisions based on data aggregated in one place, thanks to which its awareness and accuracy of choices increase, saving time and money. On the other hand, from the perspective of a young enterprise, a platform, if it is properly targeted, will generate traffic – as the interest in it grows along with the interest in a specific type of transactions it mediates.

It can also use a subscription-based system, so it will minimize the cost and time required for implementation, and any technical problems will be solved by the software provider.

Popular brands using this business model include Amazon, eBay, Airbnb, and Vinted, among others.

2. Freemium

The freemium model comes down to offering customers products in two variants in parallel: basic and advanced, with the former available for free and lacking certain functionalities available in the premium version. It is a model that focuses on interesting the audience in the product by directly offering them to use the product to a limited extent.

In this case, it is very important to skillfully balance between two variants of the product – the basic one, despite its limited usability, must be successful enough to encourage the user to try the extended version. However, not to an extent that switching to the paid version seems unnecessary.

Spotify and YouTube, among others, use this business model.

3. Subscription

This is a business model used by both digital and physical product providers. It enables you to build a customer base that provides regular, periodic revenue.

The attractiveness of this model builds upon convenience offered to consumers (e.g. fresh food delivered regularly to the home), a lower price (e.g. the price of a car provided under a subscription model vs. the price of buying one’s car) or access to the latest content (e.g. in the case of platforms offering access to film productions and series).

Spotify, BookBeat and Netflix, for example, operate on this business model.


4. DIY

An interesting business model for start-ups may also be DIY (do it yourself). It is worth paying attention to in the context of the growing interest in personalized goods and services within the so-called economy of experiences.

The customer, influencing the final shape of the product, shows a significantly increased level of satisfaction with it. Personalized products are not only very popular, but they also reduce production costs and are perceived by customers as more valuable, and thus more expensive, when it comes to price categories.

An example of using this business model is e.g. the jewelry brand Lilou, which offers customers the option of personalized engraving, or Obag, which enables customization of the material, shape, and finish of bags.

5. On-demand

Start-ups using this business model meet the expectations of modern customers, for whom the availability of the product, the opportunity to use it as soon as possible and the lack of long-term commitments are important.

Therefore, it is the communication and distribution channels that are the focus of attention for entrepreneurs deciding to implement it. A badly designed user’s experience in this area ruins the chance of business success.

Among the brands oriented around this business model are Uber and Glovo.

You’ve just read about proven business models for startups. Read also: How to promote a startup? Our ideas.

If you like our content, join our busy bees community on and .

Freemium model – table of contents:

1. What is the freemium model?
2. Freemiums vary
3. A good option for which businesses?
4. What are the alternatives?
5. Cheapium
6. Freemium model or free trial?
7. Is it possible to make money by giving it away for free?

What is the freemium model?

Freemium is a business model in which the basic version of a product or service is available for free. For access to additional, more advanced features you have to pay. Such a model is used for example by Gmail, where a user uses mail for free. Only after exceeding 10GB of free space, you can buy additional space on Google servers). This model is also used by many games available on Google Play or App Store.

According to a Distimo report, 92% of all revenue generated by the most popular games on the App Store comes from freemium (98% on Google Play – source).

Freemiums vary

The product or service may be limited in terms of:

• features (access to additional features requires payment),
• purpose (e.g. when the free version is only available for schools or non-commercial purposes),
• quantities (when e.g. the free version allows you to issue only 5 invoices per month),
• trouble (when access to additional functions requires additional actions, e.g. posting a status on Facebook, inviting friends, watching an advertisement),
• time (when they are made available free of charge for a certain period),
• the number of users (when, for example, an account is free for 3 people, and larger teams have to buy a subscription).

Which is the best option? This depends primarily on the product and the market. Look into how extensive the product is and who will use it and how. Freemium is effective as long as it is attractive to customers and goes well with the product. It is like a golden balance, the offer is expensive enough to attract the user of the product is cheap enough to get purchased. And right from the outset, remember that freemium is supposed to be first and foremost a sales tool.

“We’ve always had freemium. Sometimes our freemium has been called piracy,” Microsoft CEO Satya Nadella said in an interview with CNBC, admitting that making products available for free can make a huge difference in a promotion. Nadella also mentioned that the more people get familiar with freebies, the bigger the chance they will eventually decide to pay for it.

Evernote adopted a similar tactic, making its product available to users for free for two years. After two years, its customers were usually so accustomed to the service that they decided to purchase.

A good option for which businesses?

Not surprisingly, just some Freemium, like any business model, has its pros and cons.

It works best for businesses that operate in large markets and can reach many customers. According to TechCrunch, in large companies using Freemium, usually 1 in 10 clients decides to buy the premium option. So if you want to achieve a revenue of 10,000 Euros by selling the service for 20 Euros, you will probably need to attract as many as 5,000 customers to do so. Only 500 of them will be the paying customers. If we do the maths, we see that small businesses would definitely lose money this way.

This means that the company must ensure that free users generate as little cost as possible in terms of their service and conversion. Such users will have similar problems and requirements as paying customers.

An example of a business that knows how to use freemium effectively is Dropbox, which is used by over 400 million users worldwide. Each user gets 2 GB of cloud space for free, where they can store their files. If you exceed the limit, buy additional packages. The free version is available for non-commercial use only. Companies – currently more than 100,000 companies – pay a fixed subscription.

Another example can be Zynga, an American studio known for the production of social games (e.g. FarmVille). While downloading the basic version of the game is free, to get access to additional features and functions (e.g. virtual items) you need to buy it. Although the studio’s profits are decreasing year by year, in 2012 at the peak of its popularity, the company recorded $311.1 million in revenue.

What are the alternatives?

If not Freemium, what then? There are several alternatives, for example:

• subscription – charging regular fees in exchange for access to a service,
• usage fee – a fee depending on how long or often a customer uses a given service (e.g. number of minutes used, number of days subscribed, number of packets sent, etc.),
• brokerage commission – affiliation,

…and others. You don’t have to decide on one particular business model – you can combine many methods of monetization in one product.

Cheapium

Freemium is based on providing the basic version of the product of the service for free. Cheapium, on the other hand, is based on the fact that the basic version is available for a nominal fee (e.g. a pound, dollar or less). Such a fee can be charged once or regularly.

Cheapium has one more advantage: unlike freemium it allows you to… lower your prices. If you previously offered the basic version of your product for 0 dollars and the full version for 5, you can now offer them for the basic for 1 dollar and a premium for 25 respectively. This way the price difference between the packages falls and the likelihood that customers will decide to buy the full version rises.

Some customers think that if something is free, it is of lower quality than other – paid – solutions. This is usually not true, especially in the freemium model, but keep it in mind.

Freemium model or free trial?

Free Trial allows the user to test a product or service for a specified period or a specified number of times. This is how e.g. our ifirma .pl works – by creating an account the user gets access to a free, three-month trial version of accounting software. After that time he can decide whether he wants to buy a subscription or not.

Which of these solutions is better? There is no universal rule. Both Free Trial and freemium have their pros and cons. In the case of freemium, the user gets access to a simple, easy-to-use service. In the case of Free Trial, the user gets access to all functions, which may give the impression that the service is complicated, overloaded with unnecessary things, and difficult to use. However, if he has access to all the features from the beginning, the service may seem more useful than the truncated freemium version. In general, however, Free Trial is associated with higher conversion costs.

In the freemium service, the user has more time to get familiar with the service and get used to it. On the other hand, the approaching expiry date of the trial version mobilizes to purchase. Usually Free Trial works better for companies that operate on a small market (as opposed to freemium).

For a startup, it might be a good idea to start with freemium. To reach as many potential customers as possible – and gradually move to Free Trial or cheap model.

Is it possible to make money by giving it away for free?

As the matter of fact. yes. Although freemium means free use of a service or product, it does not mean that the service or product is free. In practice, the company always gains something from the user. An e-mail address, additional reach, word of mouth, constant feedback, and even statistics, i.e. one more registered account (the number of active users is important especially for startups trying to find investors).

Remember to give it a while before freemium starts to bring profits. Think of the success of Dropbox, Skype or Evernote, it shows that freemium can be a great business model. It offers benefits to both paying and non-paying users – provided, however, that it is a superbly conceived and skillfully implemented model.

Freemium model is not a solution for every business. For some it will be an expensive trip, for others,s it will be a way to cut costs associated with the promotion. Rob Murki of HitTail compared freemium to a samurai sword: “If you’re not a master at wielding it, you can cut off your hand.”

Read also: Branding strategy for startups. Visual brand identity

If you like our content, join us on Facebook and !

Internal PR – table of contents:

1. Internal PR – what is it?
2. Internal PR – why is it worth it?
3. Internal PR tools
4. FAQ. Questions and answers

An underappreciated employee will certainly not feel inclined to undertake efforts for the benefit of an organization that does not perceive his or her value, not to mention a sense of belonging. To avoid this, internal PR was created. In this article, we answer the questions, what it is, what tools it uses and what effect can be achieved by implementing it in your own company.

Internal PR – what is it?

Internal PR (Public Relations) is understood as a set of activities aiming at managing the relations between the employer and the employee. As a consequence the employer should appear in the employee’s perception in the desired way – e.g. as the one who ensures stable employment, decent remuneration, cares about the atmosphere at work, creates possibilities for development, appreciates the effort, consolidates the team as a real leader, at the same time being involved in the issues of social responsibility of his business.

What is all this for? The main purpose is certainly not to flatter the ego of the employer, but to achive measurable, calculated in profits and losses, business results. It has been known for a long time that a satisfied employee is an efficient employee. We also know the power of the so-called whisper marketing, in which personal feelings, analyses, recommendations or warnings embody the ability to influence the decisions of others. At the same time, it is the most reliable form of promotion or anti-advertising because it’s not motivated by profits.

Therefore, employers make efforts to reinforce positive feelings about the organization while preventing the escalation of potential crises. The key to success in this regard is effective communication, which takes a 2-way form. The employee must be noticed, and his or her opinion must be not so much heard as listened to. The most valuable capital is already available – you just need to reach for it.

Moreover, while words alone may be enough when it comes to external public relations, the employees who are at the center of the company’s events feel the decisions made need concrete steps in their implementation. A discrepancy between the declarations and the actual actions will surely be noticed in no time – that is why internal PR requires from the people responsible for it maximum transparency in words and actions.

Internal PR – why is it worth it?

Effective internal PR activities make it possible to fully exploit the potential that lies dormant in employees. Those who are satisfied with their working conditions will work more efficiently for the organization, perceiving their importance for it, attachment to it and the purposefulness their of actions. All striving for their own and the company’s development.

This effect can be maximized through the synergy achieved by integrating employees. A good working atmosphere is one of the most important factors in the eyes of employees. If this is achieved, team members will be fully focused on their duties, not distracted by possible conflicts in the group and more willing to exchange information among themselves; a sense of belonging will further mobilize them to work for the common good.

Employee satisfaction also reduces the risk of empty posts, costs associated with recruitment and the process of introducing new people to their responsibilities. Knowledge of the organization is an extremely valuable asset that can be used to improve the organization or mitigate its risks – as long as you listen to those who face various everyday problems and can generate ideas. After all, an employee who identifies with the company he or she works for will be its best advertisement. The information coming from inside the organization is the most valuable from the point of view of the recipients.

Internal PR tools

Getting down to specifics, there are many tools to build internal PR. They make it possible to effectively circulate information within the company, motivate people to work and build team spirit with which even the most distant goals can be achieved. Among them are:

• mailings,
• newsletters,
• training materials,
• boards,
• video chats,
• briefings,
• radio stations,
• contests,
• idea boxes,
• conferences,
• lunch breaks together,
• integration trips,
• events.

Read also: how to communicate at work in order to be more effective and achieve goals faster?

If you like our content, join our to stay in touch!

How to work remotely – table of contents:

1. A company without a registered office? Legal matters
2. Hire the right people
3. Ensure good communication
4. Determine overlapping hours
5. Map projects

Employing remote workers eliminates the costs of renting premises, including utility charges or hiring a cleaning company. The money saved can be spent on company development or salaries. By choosing this form of cooperation, the entrepreneur can also afford to employ specialists from any place in the world, without being limited to a particular city and without the need to bring them to the company.

A company without a registered office? Legal matters

Every company must have a registered office – the address at which the company will sell, produce or provide services must be given to the authorities. If an entrepreneur does not want to rent an office, he can give his residential address as the main place of business.

It is also worth knowing that remote work, also known as e-work or telework, is a form of employment regulated in the labor law. According to the Labour Code (Section II Labour Relationship, Chapter II b – employment of employees in the form of telework) such work:

1. May be performed regularly outside the workplace, using electronic means of communication within the meaning of the provisions on the provision of electronic services (teleworking).
2. A teleworker is an employee who performs work under the conditions specified in § 1 and communicates the results of the work to the employer, in particular by means of electronic communication

So, in a nutshell, telework is about providing work outside the workplace and sending its results to the employer via, for example, e-mail.

The employment of employees in the form of telework can take place both based on an employment contract and a civil law contract, i.e. contract for specific work, commission or agency contract.

Hire the right people

Remote work is not for everyone. In addition to the knowledge required, a remote worker should be able to manage their own time and be independent. Look for people who do not need to be managed. Communication skills and clear formulation of thoughts and instructions are also important, as remote communication has its limitations.

Remember that even if you are in touch with each other only from time to time, it is worth looking for people with whom this contact will be a pleasure. Working with an extremely talented, but difficult in cooperation specialist can also turn out to be a misfire. Of course, it is not about focusing on the character of employees instead of their competence. However, seek comprimise. “90% of a company’s culture is created by the people you hire,” believes Sean Byrnes, a business angel and the CEO of Flurry.

Ensure good communication

A big hurdle in remote work – especially at the beginning – can be the lack of control over employees. Discussing current tasks and controlling their work via the Internet is more difficult, even despite various technological solutions.

You need to make sure that your employees know exactly what you expect of them, what they are expected to do and what is currently happening. Everyone should know their role in the team and who they can go to if they have a problem. Feedback is equally important. In addition to delegating tasks, good leaders also know how to listen, ask questions and provide guidance. A good idea is to introduce into the company schedule short, regular meetings with employees, e.g. via Skype or Google Hangouts. During which the team will be able to talk about what they are working on, what still needs to be done, and if there are any problems.

Moreover, have a casual meeting from time to time. Remote work also makes it difficult to build and maintain relationships with co-workers, and this can have an impact on team morale. Foster good relations with employees and provide them with a place where they can talk to each other, not only about work-related issues. This will make it easier for them to get to know each other and become friends. If you think that such a videoconference won’t work, try setting up a topic channel on Slack, a group chat on Skype or even a group on Facebook.

Determine overlapping hours

Remote working is associated with flexible working hours. Some employees prefer to work in the morning and others in the evening, thanks to which they are more efficient. Nonetheless, such an arrangement can hinder the work of the whole team – it is more difficult to work when replies to emails and other messages come several hours late. Additionally, if you work by yourself when you want to, you’ll actually always be working. And this means that you will be available for calls from Monday to Sunday, both at seven in the morning and at ten in the evening.

So think about whether to impose two to three hours a day or week for yourself and your employees, during which time everyone should be online.

Map projects

It’s much easier to sit down to work or monitor your team’s progress when you know exactly what needs to be done. When working remotely, it’s a good idea to plan and break down all important projects on a whiteboard or timeline.

A method often used by startups and developers to organize work is Scrum. Scrum is a method where projects and tasks are written on pieces of paper, and then pinned to appropriate columns on a whiteboard – the columns represent successive elements of the process (e.g. “planned”, “in progress”, “testing”, “urgent to complete”, “done”). In the first column, a queue of tasks is formed, which are prioritized and how many hours are expected for them (using different colors of cards you can divide them into categories). Then the cards are placed one by one from left to right as the work progresses to the “done” section.

Thanks to this you can follow the development of the project on an ongoing basis, estimate what the biggest problems are. Is the work going according to schedule and how many tasks are still to be completed? This makes it easier to control the work of the team – remote workers are usually accounted for the results achieved, and not for the time spent at the computer.

Perhaps you are a project manager? If so, be sure to read our article about challenges related to remote work and how to overcome them.

What do you think about remote work – is it worth it or is it better to work in an office? Share your opinion and tag us on

Online store business plan – table of contents:

1. Business plan for e-commerce and its essence. The general plan of action
2. An effective business plan. First – make sure to be logical and coherent
3. How to write a business plan? The most important elements of the concept
4. What is a business plan useful for?
5. Business plan as a signpost to achieving goals
6. Business plan for online store. Business plan – sample document
7. Business plan – an example of implementation in the context of increasing sales
8. Can you do without a business plan?

Business plan for e-commerce and its essence. The general plan of action

The business plan is one of the most important strategic documents of a company. It defines precise company objectives, based on an analysis of the market, the environment, or the competition. It is an axis, an important base, indicating concrete business expectations in an acceptable timeframe.

In its assumptions, it should look into the future – define the upcoming tasks and the concept of their realization. The plan can be a useful aid and a kind of verifier of the adopted blueprint. Above all, it must be written in simple language that is easy to interpret – no matter if it’s a traditional business concept or a business plan for e-commerce.

An effective business plan. First – make sure to be logical and coherent

A structured document not only allows you to organize the opportunities, risks, threats, and possibilities that arise in your company’s environment. The versatility of a good business plan also lies in the document’s wide applicability. Its preparation must be objective and reliable.

As early as the memo stage, it is useful to break down individual points and analyze their validity. A business plan for an online store should be implementable from start to finish.

How to write a business plan? The most important elements of the concept

Any good enterprise strategic plan should have a detailed business case. A business characterization is a thorough explanation of the tasks performed by a company, along with an explanation and justification of the business objectives.

The description must give the reader a realistic picture of how the company operates. The company definition, further on in the business plan, is supplemented by a detailed analysis of the market, competition, or operating environment. An important part of the concept is the definition of the financial movements within the company.

What is a business plan useful for?

Creating an effective business plan for e-commerce allows you to materialize your ideas into concepts. This is important in the context of determining whether ambitious plans related to business development have a chance of being realized in practice.

In addition to its informational and analytical function, the business plan will also be an official document that opens the way to obtaining grants and subsidies. Since different institutions have different guidelines for strategic concepts, it is advisable to become familiar with the entity’s guidelines in advance.

Business plan as a signpost to achieving goals

The document will also serve as a signpost, especially in the initial phase of the company’s operation. Determination of objectives, the vision of the future, systematization of issues related to finance will allow for more efficient management of the business entity.

If we know how to write a business plan, we will also be able to successively follow the guidelines in the concept document. A business plan, like a map, keeps you from getting lost in each step of your online business.

Business plan for online store. Business plan – sample document

The correct prioritization of the various assumptions can be accomplished in a 6-point plan that includes all the necessary information. The first paragraph should explain the name of the company, along with a description of the core business. The second point specifies the detailed characteristics of the company, based on the main objectives, the object of activity, target group or area of operation. The third paragraph synthesizes the competition on a macro scale and analyzes the environment. Subsequent paragraphs of the business plan should deal with operating strategy, work organization and financial issues.

Business plan – an example of implementation in the context of increasing sales

A business plan for an online store will be able to perform external as well as internal functions. In the context of internal tasks, we can talk about, among other things, increasing the efficiency of online product sales.

The strategic concept gives you an idea of the actual competition in the market, so you can better adapt the characteristics of your products, their quality or their price to the needs of your target group. It is also an opportunity to expand sales channels or adapt them to emerging opportunities, risks, threats and challenges.

Can you do without a business plan?

A business plan for e-commerce, the assumptions of which will be implemented by the company, is the absolute foundation of any significant online business. Moreover, the various elements of the business plan should be developed and modified on an ongoing basis, along with changing conditions. If you want to start making money selling products online, it will be essential to draw up a professional concept, implement it and stick to its guidelines.

Read also how to create a branding strategy for a startup and how to approach PR in a small business.

If you like content we post, join our to stay in touch!

Crowdfunding – table of contents:

What is crowdfunding?

Usually it all starts with an appeal of a person who wants support to be granted for the realization of a particular project, idea, or undertaking that a given online community may be interested in. The appeal is usually published on the forum of a relevant crowdfunding website.

Such a portal will also act as an intermediary in raising money. If everything goes well for those interested, the originator receives the capital he needs, and the intermediary, i.e. the portal, earns on it – he receives a commission. The action itself is about collecting a specified amount of money in a specified time.

Types of crowdfunding

Classic “fan” model

The contributors receive nothing in return – not counting the satisfaction if the project is completed. Occasionally, they may receive some sort of honor or small benefit (e.g., a copy of the work or a place in a list of people who contributed to the work).

In this model, the originator may be required to pay inheritance and gift tax. There may also be an additional problem if such financing meets the conditions of a public collection, for which a permit must be obtained, and the lack of which may result in the loss of the collected money and a fine.

Mixed model

In the case of this type of crowdfunding activity, tax chambers have not taken a specific position in their interpretations. There are also no court judgments. The mixed type is considered a type of pre-sale. Then, the person who finances a given project acquires the right to purchase a service or produced goods as part of the project. Such transactions happen in the two following ways.

First, it may be about providing a service at a certain price (equal to the amount donated).

Example:

Placing the donor’s name in the credits of the film they co-financed.

Second, it’s the production of goods at a given price that is the project’s goal.

Example:

In return, the donor will receive a book whose creation and publication they are co-financing.

In both cases, the person supporting a given undertaking will receive a mutual benefit. In this model, the initiator will most often act as an entrepreneur who should account for the income from business activity. If he/she also fulfills the definition duties of a VAT payer as well as other prerequisites specified in the VAT Law, then he/she should charge this tax at the moment of receiving the prepayment (i.e. donation).

On the part of founders conducting business activity, the payments could be recognized as tax-deductible costs (of a consideration), on condition that they prove the connection of the transaction with their business activity. For individuals not running a business who support the idea, the purchase made in such a pre-sale model will remain neutral from the income tax point of view.

Equity model

This type of crowdfunding raises most doubts. It is a situation when in return for financial help, the contributor receives the right to share in profits from the implemented project, shares of the company, or securities. There are no legislative solutions that would apply to this model. According to experts, the relevant provisions concerning cash contributions in exchange for shares in commercial companies could be applied by analogy. However, each time the actual state of affairs should be analyzed.

As you can see, crowdfunding is a good idea for raising money or to promote your startup. If you would like to get other ideas on how to grow your business, feel free to read our article where we explore this topic.

Join our to stay in touch!