A business model is how a company creates value for itself while
delivering products or services to it's customers. It's not an org
chart, it's about 9 key pieces:
- The Value Proposition: What pain are you
solving? What gain are you creating? Who are you solving it
for?
- Customer Segments: Who are they? Why do they
need you? What are their demographics? What's their persona?
- Distribution channels: How does your product
get to your customers?
- Customer Relationships: How do I get customers
(acquire)? How do I keep them (activate them)? And how do I grow
them (retain and up-sell)?
- Revenue Streams: How do I actually make money
from my customers? What value do is the customer paying for? What's
the strategy for capturing that value? What's the revenue
model?
- Key Resources: What assets/key resources are
important to your business model?
- Key Partners & Suppliers: What exactly are
you acquiring from your partners and when are they going to preform
those actions?
- Key Activities: What are the most important
activities you must complete to make the business model
succeed?
- Costs: What are the costs and expenses to
operate the business model?