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In this video I explain what is a business model. Some people use a very popular concept of the business model canvas, but for businesses that are just starting out, I don't think you need that level of complexity. The term business model is a very widely used term. And often, the term business model is used incorrectly. In fact, even when the term business model is used correctly, it is done by smart people who tend to give an overly complex explanation of what is a business model.
Some people like to explain what is a business model in terms of the business model canvas. But I think it is too complicated of an example in most cases. The simple way I like to explain what is a business model is to just give the analogy of an architecture blueprint. The architecture blueprint is the model for how a building should be built. So a business model is the blueprint for the business.
And a business has three components which are the most important components. Usually, if these components work well together, the other details of a business plan can be made to mesh well together. The three important parts of a business and a business model are 1) your product or service 2) how you will market and sell that product or service, and 3) the financial picture of items one and two.
Here is the Android business plan app:
https://play.google.com/store/apps/details?id=business.premiumiOS business plan app:
https://itunes.apple.com/us/app/business-plan-and-coach/id554845193And here is our 4-app business starting course on the Kindle:
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http://www.problemio.com/business/barnes_and_noble_nook_tablet_business_apps.phpThis tutorial explains what is a business model in a business plan and provides a few examples. It might seem like something that is self-explanatory, but many people cannot correctly explain what is a business model when asked to define this term. Many people confuse the term business model with revenue model.
Some people explain what is a business model with a nine step building block system to help organize and structure your thinking. For most businesses, not all steps apply. So in this tutorial, I explain what is a business model in simple and clear terms, and provide a few examples.
For more explanations and examples of what is a business model, take a look at the Wikipedia explanation of what is a business model. This particular business model tutorial on Wikipedia uses the business model canvas to explain this concept, but as we have seen, you can keep things much simpler and still accomplish what you need as long as you understand the components of your business that are important for your unique company.
http://en.wikipedia.org/wiki/Business_modelPlease check out my business books. Here is my book on starting a business which covers topics like what is a business model and how to write a business plan:
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https://www.youtube.com/watch?v=wczuIohbG7kWas Marc Cuban wrong about business loans:
https://www.youtube.com/watch?v=yM2nOza7lVkWhat is a business plan
https://www.youtube.com/watch?v=T63QsuNIwZAHow to make money with ads:
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https://www.youtube.com/watch?v=LEPLs1dOBZgHow to identify your target market:
https://www.youtube.com/watch?v=loHvzCFnAvgWhat is KPI and how to use it in your business:
https://www.youtube.com/watch?v=fx1x33DKmGcBook on how to start a business:
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