The term business model has gained incredible popularity in the last decade as one of the most important ways of approaching business innovation and business strategy. If youre like most people, you probably define business model as a companys plan for making money.
The business model for Microsoft, for instance, was to sell software for 120 bucks a pop that cost fifty cents to manufacture The business model of most Internet companies was to attract huge crowds of people to a Web site, and then sell others the chance to advertise products to the crowds.
A successful business model just needs to collect more money from customers than it costs to make the product. This is your profitsimple as that. New business models can refine and improve any of the three components mentioned above. Maybe you can lower costs during design and manufacturing. Business model the soul of businessBusiness model the soul of businessBusiness Model ThesisFree Business Model Thesis SampleHow to Write a Business Model – Course HeroThe Business Model CanvasA business model is a model of how a business operates. A business model describes the business in its entirety, including the following:What a business sells. The products, services and information it provides. How it sells them. What it charges for them. What the business does to make money. When it makes money. Where it makes most money.