IoT is the ever growing concept of connecting physical objects through internet. Internet of Things has the capability to connect everything, everyone and everywhere. It is important to accept the reality that the resources are limited and an optimum utilization of these resource have to be done for sustainability. The wastage is usually highest in the fields of water and electricity consumption. The biggest challenge for businesses is that the processes today are competitive and have to meet the customer demands without slowing down. IoT solutions such as smart irrigation system, automatic street light system and voice controlled home automation are one of the key solutions to the raising challenges. In this study prototypes of the above mentioned solutions have been built and tested to understand the potential of IoT. India predicts about 5 billion IoT connections by 2022, and an economy of $1 trillion by 2025. And the reality is that, it's already 2019 and IoT's growth is slower than predicted because of some of the barriers to implementation. Some of the barrier to the growth of IoT is unawareness of consumers and cost concerns. So it is necessary for businesses to adapt business models which are efficient and suitable for IoT businesses to reach the target segment with a proper channel and a competitive value proposition. In this study a business model framework has been suggested for the prototypes built. As cost is another barrier to the IoT adoption, the cost effectiveness of IoT solutions such as smart lighting system and smart irrigation system has been compared with respect to the traditional solutions.