I've helped businesses create and scale online marketplaces to a 6 and 7 figure valuations. I have seen many marketplaces with right sop's SCALE while others working without a set process to FAIL...
It helps you determine the kinds of user who will be transacting on your marketplace. Will it be buyers, sellers, vendors, sub-users etc. You can plan roles according to each user type.
When you know the kind of users transacting on your platform, you can look out for relevant revenue streams from them too. It helps you in taking a decision at that point.
It allows you to take decisions on important aspects of your business. Will you be monetizing on commissions or will you work on procurement model.
As you decide on the right business model it allows you to decide on the questions related to your company structure and tax compliances needed.
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