what is a business model?
- Coleen WLv 41 decade agoFavorite Answer
A business model is different from a business plan. A business plan is a detailed document, typically 50 to 100 pages, with a lot of financial projections. A business model is much less detailed. A business model describes the specific way the business expects to make money.
Six functions of a business model:
1. to articulate the value proposition
2. to identify a market segment
3. to define the structure of the firm’s value chain
4. to specify the revenue generation mechanisms
5. to describe the position of the firm within the value network
6. to formulate the competitive strategy.Source(s): http://www.audiencedialogue.org/busmod.html http://www.howarddowding.com/modelx.htm http://www.1000ventures.com/business_guide/busines...
- 1 decade ago
A business model is similar to a plan , you consider process, finance , sales product development and you set a model (ideal) for the business going forward.
Models can always be changed or adjusted and merely identify the key drivers of the business and are measurable signposts that we place before commencing change
- 6 years ago
Here is a video explaining what is a business model:
And here is the difference of business model vs. a revenue model:
And here is an example of a business model which is called the Freemium business model. This is very popular online.
I hope that explains things :)
- 1 decade ago
It is a plan: How you are going to start your business, What you expect to happen during your first few years, etc. People often look to the future so that they plan ahead for problems that their business might face, IE not big enough location, to few customers, etc.
In essence it is what Entrepreneurs use to successfully start a business.
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- Mr. RightLv 41 decade ago
OH! I know! Is it one of those hot blonde chicks that wears a suit, high heels, and glasses!!??? Yeah I like that!