A business model is a story that explains how a company works. In the case of a startup, it explains how the venture will make money. A business model first defines who the prospect is and what they value. It then describes how the startup intends to deliver this value to customers.

Think of it like a structure built by the inter-dependent factors that support a business’s viability, such as goals, target market, competition, sources of revenues, financing methods, pricing, etc.

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