Business modeling is about designing how a business creates, delivers, and captures value. In simple terms, it answers one big question:
How does the business work and make money?
It’s like a blueprint of the business—showing what you sell, who you sell to, how you operate, and how you earn profit.
Key parts of a business model
Most business models explain things like: Value proposition – What problem you solve or what value you offer
Target customers – Who you serve Revenue streams – How you make money (sales, subscriptions, ads, licensing, etc.) Cost structure – Major costs involved in running the business Key activities – What you must do to deliver the value Key resources – People, technology, assets, or partnerships you need Channels – How you reach customers (online, retail, distributors) Customer relationships – How you attract and retain customers