Business Models
A company's core strategy for profitably doing business, defining how it creates, delivers, and captures value for customers.
What Is It
A business model explains how a company creates, delivers, and captures value. It covers who the customer is, what problem is solved, how revenue is earned, and what costs are required.
Why It’s Important
Even great products fail with weak business models. A strong model aligns incentives, scales efficiently, and withstands competition. Understanding the model helps leaders make smarter growth decisions.
Best Practices
Be clear on value creation
Understand unit economics
Test assumptions early
Adapt as markets change
Avoid complexity for its own sake
Key Insights
Revenue is a consequence of value
Simplicity scales better
Business models evolve, not freeze
Researchers at the University of St. Gallen found 55 core business model patterns (like Add-On, Subscription) that underpin 90% of successful ventures. The ones that work (or could work) for your business and you can execute on is all that matters.