This is what Wikipedia tells us about business model: “A business model describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts. The process of business model construction and modification is also called business model innovation and forms a part of business strategy.
In theory and practice, the term business model is used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, business process, target customers, offerings, strategies, infrastructure, organizational structures, sourcing, trading practices, and operational processes and policies including culture.”
Does this leave you staring at the screen? Yes, me too!
When I think Business Model, I think how the business is going to make money… Selling low-cost product first and then upselling? Selling to a niche market highly specialized products or services? Selling bread-and-butter to a mass market? Having recurring sales and keep finding new customers? To the core is really what, to whom and how will you sell what you have to sell?
You may think this is not crucial and it may not be while you are building your product, but the sooner you think about it, the sooner you’ll know which features may matter in your MVP. Makes sense? Discover more while we discuss the ins and outs of business models.