business model

Company profit plan

A business model is the way a company makes money—specifically, how it creates value and captures revenue.

Their business model depends on advertising rather than subscriptions.

The term became ubiquitous during the dot-com era, when startups needed to explain how they'd eventually turn a profit.

Different industries have characteristic models: subscription, freemium, franchise, marketplace.

We need to rethink our business model.

enterprise

corporation

Legally separate business entity

subsidiary · venture · partnership · B2B · B2C · nonprofit · unicorn · brick-and-mortar · e-commerce · scale-up

revenue

monetization

Converting something into revenue

licensing · commission · marketplace · pay-per-use · affiliate · usage-based · recurring · one-time · premium · ad-supported

framework

blueprint

Detailed technical drawing

schema · methodology · paradigm · design · typology · matrix · outline · roadmap · approach · canvas

strategy

differentiation

Recognizing meaningful differences

pivot · scaling · expansion · acquisition · blue-ocean · disruption · first-mover · platform · ecosystem · synergy

sustainability

circular

Forming a closed curve

  • ethicalConforming to moral principles
  • stakeholderParty with an interest
  • ESGCorporate responsibility framework

carbon-neutral · regenerative · inclusive · mission-driven · green · zero-waste · cradle-to-cradle

Categories
Opposites
organizational purpose

business modelcharitable mission

Organized endeavor to help

philanthropy · public service · volunteer organization · gift economy · charitable organization

strategic formalization

business modelimprovisation

Spontaneous, unplanned creation

winging it · flying by the seat of your pants · chaos · disorganization · hobby

economic viability

business modelPonzi scheme

Fraudulent returns from newcomers

pyramid scheme · money pit · cash burn · bankruptcy · insolvency

Family

model, business, businessman, businesslike, businesses, businesswoman, businessperson, busyness, businessmen

Familiarity
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