What Is a Business Model? Business Models Explained

Up and Running

Airbnb is a well-known example of the marketplace business model. Understanding the problem you are solving for your customers is undoubtedly the biggest challenge you’ll face when you’re starting a business. This is where your business model comes into play.

The Business Model Canvas Can Get Your Startup Funded

Startup Professionals Musings

An effective tool I see used more and more, as a prelude to a more detailed business plan, is the Business Model Canvas , first introduced by Alexander Osterwalder back in 2008. A business without well-defined customers is never fundable.

Subscription Business Models Are Startup Favorites

Startup Professionals Musings

Every new business quickly realizes that revenue coming in every period on a committed basis is the Holy Grail to survival and growth. Thus the subscription model (low fixed monthly payments), is rapidly becoming the norm for new products and services. All-you-can-eat content model.

The Business Model Canvas Gets Even Better – Value Proposition Design

Steve Blank

—— The Lean Startup process builds new ventures more efficiently. It has three parts: a business model canvas to frame hypotheses, customer development to get out of the building to test those hypotheses and agile engineering to build minimum viable products.

6 Ways Startups Are Fooled By Prior Business Models

Startup Professionals Musings

As an entrepreneur mentor and startup investor, I see with sadness the 50 to 90 percent that fail. Many are just not facing the reality that their passion had a critical business flaw. Physically or emotionally moving yourself above the business.

Digging Deeper into Lean Business Model Canvases

Instigator Blog

I was also very impressed with Steve Blank’s new initiative Lean Launch Lab , which combines a canvas business model tool and a blogging tool for startups to use and share information regularly with investors. Lean Startup and Customer Development aren’t easy.

The 47th (-46) International Business Model Competition

Steve Blank

The most visible step was the first International Business Model Competition , hosted by the BYU Rollins Center for Entrepreneurship and Technology. What’s A Startup? Business Model Versus Business Plan.

A business model for every startup

Start Up Blog

Here’s a simple business model which should be built into every startup. The startup may invent the technical possibility, or leverage an emerging possibility for the community they are building. entrepreneurship business business model future startups technology

A Valid Business Model Requires Real Customer Sales

Gust

This rather crude expression weighs heavily on the mind of all good startup founders, no matter how confident they appear. The real milestone, proving the business model, is that first product sold for full price to a total stranger, leaving him happy. Image via Pets.Answers.com.

Startup Business Model Considerations

SoCal CTO

Fantastic post by Christian Gammill - Startup Delta Force… From a competitive perspective (e.g. Business - how are you actually going to make money? all the other folks out there that will try to enter the same market) the barriers have been dropping over the last few years.

Solving the "marketplace" business model

A Smart Bear: Startups and Marketing for Geeks

A sizable percentage of Capital Factory startup submissions take the form of the "marketplace." In fact, 3 of the 10 selected companies from the past two years has followed this business model. What are other advantages or pitfalls of marketplace-style businesses?

Entrepreneurs Need Focus on Their Business Model

Startup Professionals Musings

Many entrepreneurs work hard on the proof of concept (technical), but skip any proof of the business model (revenue flow). Proving the business model requires a different approach than proving the technical concept. So how do you go about proving the business model?

Fermi estimation for startup business models

A Smart Bear: Startups and Marketing for Geeks

Often your best estimate of any metric or market behavior or business model component is at best accurate within a power of ten, for example “expected conversion rate between 0.5% Let’s run an example, taken from real numbers from a startup I recently spoke with.

Technical Product Elegance is Not a Business Model

Startup Professionals Musings

Many entrepreneurs work hard on the proof of concept (technical), but skip any proof of the business model (revenue flow). Proving the business model requires a different approach than proving the technical concept. So how do you go about proving the business model?

Who Dares Wins – The 2nd Annual International Business Model Competition

Steve Blank

Alexander Osterwalder and I spent last week in Salt Lake City, Utah as judges at the 2 nd Annual International Business Model Competition , hosted by Professor Nathan Furr , and his team at the BYU Center for Entrepreneurship. The Business Plan ?-

A Valid Business Model Requires Real Customer Sales

Startup Professionals Musings

This rather crude expression weighs heavily on the mind of all good startup founders, no matter how confident they appear. The real milestone, proving the business model, is that first product sold for full price to a total stranger, leaving him happy.

Combine Creative Products with a New Business Model

Startup Professionals Musings

Within the startup realm, there is a big difference between having an innovative product versus an innovative business. Some startups have a new technology, but stick to a tried-and-true business model. entrepreneur Josh Linkner startup business model

How To Run a Business Model Hackathon

Instigator Blog

At Year One Labs we’ve also found hackathons to be fairly instructive in terms of finding quality entrepreneurs: the hackathon is a microcosm of what it takes to build a startup. In my recent post on lessons learned launching a lean startup accelerator I made reference to another kind of hackathon — the Business Model Hackathon — as a tool we’ve used to vet entrepreneurs, find interesting people and learn.

Why Startups are Agile and Opportunistic – Pivoting the Business Model

Steve Blank

Startups are the search to find order in chaos. At a board meeting last week I watched as the young startup CEO delivered bad news. The Search for the Business Model. A startup is an organization formed to search for a repeatable and scalable business model.

Agile 200

The unprofitable SaaS business model trap

A Smart Bear: Startups and Marketing for Geeks

So no, this upside-down business model isn’t what a SaaS business should construct. I wish the modern startup community would understand the mindset that gets a company to this point, and resist it.

Creating Startup Success – Customer Development + Business Model Design

Steve Blank

In previous posts I’ve talked about what the combination of Business Model Design, Customer Development and Agile Methodologies mean to startups and intrapreneurs in large companies; it’s the beginning of entrepreneurship as a science with its own rules and methodologies. My public talk at Columbia University was part of their Science, Technology, Engineering and Math Startup lecture series. Filed under: Business Model versus Business Plan , Customer Development.

Is ?Data? a Business Model? ? AGILEVC

Agile VC

AGILEVC My idle thoughts on tech startups. Is “Data” a Business Model? Several years ago I wrote a post about the three business models of the consumer web : commerce, advertising, and user-paid premium services. How to Evaluate Firms for a Seed VC.

Test Your Business Model Against These 10 Elements

Startup Professionals Musings

You can’t succeed in business without an operational model that delivers value to customers at a reasonable price, with an underlying cost that allows you to make a profit. Revenue model. Investors will want to understand your business model very well and very early.

Facebook’s business model

Chris Dixon

Startups usually succeed because of a single major product or business innovation. Google is unusual in that they succeeded because of two major innovations: their core search product, and their keyword advertising business model. Back in 2000, when Google was wildly popular but generating no revenue, the conventional wisdom was that their business model was uncertain. Then Overture invented keyword advertising and Google adopted the same model.

Some Startups Forget to Validate a Business Model

Startup Professionals Musings

Many entrepreneurs work hard on the proof of concept (technical), but skip any proof of the business model (revenue flow). Proving the business model requires a different approach than proving the technical concept. So how do you go about proving the business model?

E-Commerce Business Modeling vs Trailblazing

The Startup Magazine

Problem: The problem is the success rate is so low, that the scrap heap of business owners on that pile may be higher than any other. This is where good and qualified potential business owners usually meet their doom. Solution: Reverse engineer a successful business first.

Investors Reject Plans With No Clear Business Model

Startup Professionals Musings

For survival, the objective of every business should be to bring in revenues which exceed their costs. Yet I continue to see business plans, or even talk to founders, and can’t find the specifics of the business model anywhere. eCommerce model. Shopkeeper model.

The LeanLaunch Pad at Stanford – Class 2: Business Model Hypotheses

Steve Blank

Our new Stanford Lean LaunchPad class was an experiment in a new model of teaching startup entrepreneurship. Come up with ways to test each of the 9 business model canvas hypotheses. Consider if their business worth pursuing? Their business was a robot lawn mower.

Open Source Business Model

SoCal CTO

skip to main | skip to sidebar SoCal CTO Monday, March 5, 2007 Open Source Business Model A recent spate of posts on the challenges of running an open source business is interesting ( Tosh , Siemens , Downes , Tosh 2 ) and quite heated as one of the founders of elgg - a social networking platform aimed at the educational space - Dave Tosh laments - Elgg is the most popular white label social networking platform in the world powering over 2000 networks.

Entrepreneurship as a Science – The Business Model/Customer Development Stack

Steve Blank

It’s the combination of Business Model Design and Customer Development. Business Model Design. Today every business organization from startup to large company uses the words “business model.” Business Model Canvas.

Ten Questions to Ensure a Viable Business Model

Startup Professionals Musings

You can’t succeed in business without an operational model that delivers value to customers at a reasonable price, with an underlying cost that allows you to make a profit. Revenue model. Investors will want to understand your business model very well and very early.

It Takes a Customer Sale to Prove a Business Model

Startup Professionals Musings

This rather crude expression weighs heavily on the mind of all good startup founders, no matter how confident they appear. The real milestone, proving the business model, is that first product sold for full price to a total stranger, leaving him happy.

Seven Tips for Proving Your Business Model

Startup Professionals Musings

Many entrepreneurs work hard on the proof of concept (technical), but skip any proof of the business model (revenue flow). Proving the business model requires a different approach than proving the technical concept. So how do you go about proving the business model?

Adopt a Clear Business Model to Survive

Startup Professionals Musings

For survival, the objective of every business should be to garner revenues which exceed their costs. Yet I continue to see business plans, or even talk to founders, and can’t find a clear business model. eCommerce model. Shopkeeper model.

Find the Business Model for Your Aspiration

Startup Professionals Musings

What are the alternatives that will give you the independence you crave, and challenge your business acumen? If you want to nurture a product into full bloom, a traditional startup is your best bet. New startups build from scratch, and go for broke.

Business Modeling for Bootstrappers

The Entrepreneurial Mind

One of the limitations of Osterwalder's canvas for business modeling is that is can get a bit clumsy for lean start-ups that are bootstrapped. Ash Maurya is a web-app entrepreneur who offers some helpful insights on how to adapt the Osterwalder model for lean start-ups at his blog : I do find some of Osterwalder's blocks a bit too general for a lean startup. and specifically my type of business - web apps. partners or a customer relationship model.

10 Most Common Business Models to Make a Profit

Inc Startups

One of the most critical elements of any sustainable business is achieving a positive cash-flow. StartupWithout that, even the best intentions will fail.

The Art of the Business Model

How to Change the World

A good business model forces you to answer two simple questions: “Who has your money in their pockets?” You’ll tweak your business model constantly–in fact, it’s scary if you don’t change your model or do some major tweaking along the way. If you can’t describe your business model in ten words or less, you don’t have a business model. Business language does not make a business model.

Business Modeling is Process, not an Event

The Entrepreneurial Mind

Developing a sound business model is key to the successful launch of a business. But you should never assume the business modeling is finished once the business begins to grow. Keeping a business model current is critical for long-term success. A business model helps to ensure that all of the "moving parts" of the company are working together. When we expanded our health-care business from Raleigh into Charlotte, N.C.,

10 Top Business Models for New Ventures Today

Startup Professionals Musings

One of the toughest decisions for a startup is how to price their product or service. The implications of the decision you make are huge, defining your brand image, your funding requirements, and your long-term business viability. Freemium” model. Cost-based model.