What is a business model?
A business model describes the rationale of how an organisation creates, delivers, and captures value. Business Model Canvas is a common tool for presenting the business model. See introduction below:
Business models matter because whatever you do, you cannot escape having one. Any business – successful or not – has a business model. The challenge is to create a business model that helps you:
- being more effective by focusing on the right customers
- to offer what the customers need (or want)?
- being more efficient by using the right resources and activities and working with the right partners;
- being more likely to grow by finding a replicable, scalable recipe for your business rather than scratching your head every day trying to answer the “what should I do next” -question.
How will I formulate my business model?
A popular tool to work with business models is the business model canvas, which proposes 9 components to the way every business works. Before you begin, you must understand business models a little better and understand the tools.
*Recommended further reading: * Ostervalder Alexander; Pigneur, Yves; et al – Business Model Generation, Wiley (first 70 pages available as a free sample athttp://www.businessmodelgeneration.com/book
Visualize your business model in 15 min – tutorial
Business model tools and templates:
Business model – graphical samples:
Goal of the business model are:
- You understand what business models are.
- You have a business model canvas for your company idea.
- You have prioritised the most important tasks