Business Model Basics
What's a Business Model
A business model distills a business concept down to the most essential details:
Value: What is the product and what makes it valuable to customers?
Marketing: Who are the company's customers? How will they connect with the product? How will you keep them coming back?
Infrastructure: How does the business plan to design, produce, and deliver the product?
Finances: How much sales or other revenue can the company generate? How much will it cost to operate the company?
Business models are often a preliminary to writing a formal business plan, which covers the same questions but in more detail. They should be written simply and without technical jargon or nonessential details.
The Business Model Canvas
The standard template is the Business Model Canvas (BMC), a framework that organizes around nine essential business questions.
While the BMC is a great tool for organizing your ideas about your business, it also provides a necessary common language for discussing essential business ideas with prospective recruits, mentors, advisors, and investors.
More information about getting started with a business model is available at the annual business model workshop.
