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Business model: How to write a business model?

If you want to set up a company or introduce a new product/ service into the market, and you are not ready yet (or you do not want) to write a business plan, you may use a tool called a business model. It allows to describe an idea in a simple and quick manner. This idea may be later e.g. presented to potential investors.

Business model

The article makes use of The Business Model Canvas, made available on the license of Creative Commons Attribution-Share Alike 3.0 Unported License. Both on the Internet and in the literature there are several variants of this model that can be encountered.

Definition

A business model is a draft of a strategy, which is to be implemented in an organization, and thanks to which this organization provides itself with financial existence. It is composed of 9 elements describing the process of a company making money: (1) a segment of customers, (2) a value offer, (3) channels, (4) relationships with customers, (5) streams of income, (6) key resources, (7) key actions, (8) key partners, (9) a structure of costs.

A business model refers to companies by definition. Although, it may be applied in case of designing and developing one’s own professional career. In these both cases, it undergoes constant changes in time, and it needs to be updated, so it keeps to be effective.

A ready model should fit on one A4 piece of paper, posing an understandable and clear manner of description of an undertaking. What is more, little space require to stay focused only on the most significant elements.

Outline

A business model has a form of a single A4 page. It may be printed out, and particular fields may be marked down, drawn on a board or one of the free Internet applications may be used.

Business model (PDF)

Business model

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