What is a Business Model?
A business model defines how a company creates, delivers, and captures value, outlining its revenue streams, cost structure, and customer segments.
Table of Contents
Full Definition
The business model is a strategic framework that explains how a company operates and makes money.
It includes the identification of key partners, resources, customer relationships, channels, and financial flows.
Understanding and refining your business model is crucial for sustainable growth and competitive advantage.
Examples
Defines value proposition
Clarifies revenue streams
Identifies customer segments
Benefits
Provides strategic clarity
Enables scalability planning
Facilitates investor communication
Common Mistakes
May require frequent iteration
Can be complex for multifaceted businesses
Conclusion
A solid business model is foundational for successful entrepreneurship and long-term viability.