Business model

A business model is the essence of how an organization creates, delivers and captures value. It forms the blueprint of a business and determines how money is made. This concept is important for both startups and established businesses because it lays the foundation for profitability and growth. In fact, it acts as the navigation map for business success.

What is a Business Model?

A business model describes the way a company generates and markets value. It includes the products or services offered, the target market, pricing strategy, distribution channels and revenue streams. However, it goes beyond financial aspects. A business model must also consider operational processes, partnerships and the organization's long-term vision.

There are different types of business models, ranging from e-commerce and subscriptions to franchising and licensing. Choosing the right business model is crucial because it determines a company's viability and competitive position. It allows entrepreneurs to better understand the market and make strategic decisions to thrive in a rapidly changing business environment. So you can think of a business model as the cornerstone of any successful business.