How Subscription Business Models And Outsourcing Allow Startups To Create Leverage.


September 21, 2019    James Taylor

What’s remarkable is that today, businesses are going well beyond traditional subscription use cases. We’re moving rapidly toward a business environment where just about anything that can be procured as a service is now procured that way. This concept of anything as a service (or XaaS) allows us to imagine a world where businesses can focus their limited resources on the advancement of their unique core competency, leaving other required functions to be serviced by a basket of subscription-based services that can individually scale and be paid for in an on-demand way as needed.

Imagine the hypothetical b2b startup company. The company is founded by someone who sees an opportunity for a new service, and by bootstrapping, they are able to invest enough money to design, build and test this new online service. Of course, in order to launch the service, this business also needs to worry about a million other things as well: how the service is going to be marketed and sold, customer support, software to run operations, hiring people, building a website, legal and tax matters — the list seems infinite. While these functions are required to run most businesses, very few of them are directly related to the company’s desire to deliver great service for their customers.

And they all consume company resources and attention. But what if these functions didn’t? What if all you had to worry about was listening to your customers and continually improving your product, and every other function could be efficiently pieced together and paid for as the growth of the business warranted? That’s the idea. Of course, it helps to have an experienced consulting agency to help curate, integrate and launch this subscription blueprint. That’s the powerful opportunity to scale strategically within the subscription economy.

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