What is "Business Model" meaning?

Business Model is a business term that describes the structure through which a company generates income. It includes the company's value proposition, target market, and cost structure.

Example

"Our startup's business model is based on a subscription service that offers premium content to users on a monthly basis."

How is "Business Model" used in business?

In business, business model helps companies define their revenue sources, customer base, and overall approach to operations. Understanding it is crucial for shaping strategy, attracting investment, and achieving profitability.

Pro Tip

When refining your business model, focus on scalability and adaptability to market changes. Ensure it aligns with customer needs and competitive advantages.