Business Model 101 – What it is, why it is important, and how to get started

When you’re starting a new business, it is useful to have clarity on your business model. Don’t know what that is? No problem, we’ve got you covered 🙂

Read on to find out more about Business models.

What is a business model?

Let’s cover the definition first:

A business model describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts. (Source – Wikipedia)

Basically, a business model defines how your business works, and more importantly, makes money. Cash is your business’s lifeblood, after all, so it is a bit important won’t you say.

Why business models matter?

Why is it important to have a business model? Find out in this video.

https://www.youtube.com/watch?v=o8tO_ieJTSM

How to develop your business model

This, we have a feeling, is the section you are most interested in. So without further ado, find out how you can develop a business model for your business.

Five Examples of Business models

These examples will help you get further clarity on business models. More importantly, they’ll help you realise that when it comes to developing a successful business (and business model) there is no “one size fit all” method.

These are the five businesses whose business models are featured below:

  1. WhatsApp
  2. Quora
  3. TOMS Shoes
  4. Amazon
  5. Twitter

1. WhatsApp’s Business Model

2. Quora’s Business Model

3. TOMS Shoes’ Business Model

4. Amazon’s Business Model (E-commerce business model)

5. Twitter’s Business Model

Last words

We hope this article has given you enough information and ideas to develop your own business model.

Let us know how it goes, we at BLC are always thrilled to hear from our readers 🙂

 

Further reading
https://hbr.org/2015/01/what-is-a-business-model
https://hbr.org/2002/05/why-business-models-matter

 

This article is about:
Business models 101
What is a business model
Business model definition
Why business models matter
How to develop your business model
Business model examples
WhatsApp’s Business Model – How WhatsApp makes money
Quora’s Business Model – How Quora makes money
TOMS Shoes Business Model – How TOMS Shoes makes money
Amazon’s Business Model – How Amazon makes money
Twitter’s Business Model – How Twitter makes money

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