What Is A Business Model And Which One Is The Right One For A Business ?
When people use the term business model , they often mean “how the business earns money”. To understand the implications of this question deeper, however, it’s important to make the distinction between business model and revenue model : A revenue model is a narrow answer to that question. The revenue model is the combination of all your revenue streams. It’s concerned narrowly with the area of your business that involves clients transferring money to your organization. The business model is a more broad term. It involves the revenue model, but it’s also concerned with other aspects of the business like e.g. the cost structure. For example, while the revenue model of a traditional retailer is concerned only with customer transactions, the business model is concerned with suppliers, locations, marketing, employees, etc. Because of this, simply choosing a business model for a business is somewhat unrealistic. The innovative nature of the venture means that...