When putting together a subscription model business plan, there are certain risks to consider. It’s an industry with rapid growth, but high volatility. Although companies like Blue Apron found initial success, they started to flounder after their IPO as they faced increased competition. This places pressure on subscription box business ideas to be increasingly creative.
Other subscription business examples highlight the risks in this type of business. For every Dollar Shave Club, there are ten more companies struggling to scale. It’s important to look at recent trends and to understand what niches are already saturated. Focus on quality over quantity, personalization, and stellar customer service.