What Is a Business Model and Why Does It Matter?
In This Chapter
Examining advanced business planning, also known as business models
Speeding time to profit with a better business model
Discovering why governments, families, churches, and businesses all have a model
Predicting the future of business models
So what is a business model anyway? Is it the way you make money? Yes, in part. Is it competitive advantage? Yes, in part. Is it your business plan? Not really. Simply put, a business model is your profit formula. It’s the method you use to acquire customers, service them, and make money doing so. I like to break down a business model into three primary areas: Offering, monetization, and sustainability. What is your offering? How will you monetize the offering? How will you sustain it?
Your business model creates not only the formula by which you make money, but also the strategic context of the organization.
Simply put, a business model is the framework of rules and “moral” imperatives within which the business operates. It provides the strategic context for both the ...