Intro to Business Model

Question 1

What is a business model

Answer 1

A business model is a plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products and details of financing.

Question 2

Uses for business models

Answer 2

Starting a new business
Innovation and Product Design
Creating Revenue Stream
Competitive analysis

Question 3

What does the business model define

Answer 3

Who -who is our customer and what does he value.

What - what value do we actually deliver a.k.a which business are we in?

How - How to create deliver and capture parts of that value

Question 4

List the types of business model

Answer 4

Direct sales model
Franchise Model
Freemium Model
Subscription model
Business model canvas

Question 5

Describe the direct sales model

Answer 5

Sales of product/service generate revenue through a network of sales people who sell directly to customers.

No fixed retail location.
Business owners earn a portion of the direct sales while product company retain the rest.

Question 6

Describe the franchise model

Answer 6

Business owner purchases anther organizations’ business strategy.

Question 7

Describe freemium model

Answer 7

Usually used by business that offer services personal via the internet.

Offers basic- level service for free at first and has advanced services as add-ons.