Business Model

The plan implemented by a company to generate revenue and make a profit from operations. The model includes the components and functions of the business, as well as the revenues it generates and the expenses it incurs.

Business model is a buzzword that everybody used (or overused) during the dotcom boom. In fact, poorly thought out business models were the downfall of many dotcoms.

However, the business model dates back to the earliest days of business; it merely describes the way in which a company makes money. A business model can be simple or very complex. A restaurant's business model is to make money by cooking and serving food to hungry customers. A website's business model might not be so clear, as there are many ways in which these types of companies can generate revenue. For example, some make money (or try to) by providing a free service and then selling advertising to other companies, while others might sell a product or service directly to online customers.


Investment dictionary. . 2012.

Look at other dictionaries:

  • business model — UK US noun [C] ► COMMERCE, FINANCE a description of the different parts of a business or organization showing how they will work together successfully to make money: »He believes he has developed a successful business model for selling music… …   Financial and business terms

  • business model — n. An amorphous term having to do with identifying the specific ways in which a business creates value, or simply put, how it sells stuff for more than it costs. I ll show you my business plan if you show me yours …   Business English jargon and slang

  • Business model — A business model is a term used for a broad range of informal and formal descriptions that are used by enterprises to represent various aspects of its business, including its purpose, offerings, strategies, infrastructure, organizational… …   Wikipedia

  • Business model — Pour les articles homonymes, voir modèle économique. Le «Business model», est une représentation synthétique censée décrire à un haut niveau de consolidation les aspects majeurs de l activité entreprise par une organisation, tant au niveau de ses …   Wikipédia en Français

  • Business Model — Modèle d entreprise Pour les articles homonymes, voir modèle économique. Un modèle d entreprise (ou modèle d activité, concept d activité en français) est un cadre de travail destiné à la création économique, sociale et/ou d autres formes de… …   Wikipédia en Français

  • business model — noun The particular way in which a business organization ensures that it generates income, one that includes the choice of offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies …   Wiktionary

  • business model — /ˈbɪznəs mɒdl/ (say biznuhs modl) noun an outline of the structure and operations of a business, formulating the means by which it aims to generate revenue …   Australian English dictionary

  • business model — …   Useful english dictionary

  • Business model design — refers to the activity of designing a company s business model. It is part of the business development and business strategy process and involves design methods. Business model design includes the modeling and description of a company s: * value… …   Wikipedia

  • Business model durable — Modèle d entreprise Pour les articles homonymes, voir modèle économique. Un modèle d entreprise (ou modèle d activité, concept d activité en français) est un cadre de travail destiné à la création économique, sociale et/ou d autres formes de… …   Wikipédia en Français

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