"A business model is a framework by which you extract from your customer some portion of the value your product creates for them. It is the idea that the amount of money your venture gets paid is based on how much value the customer gets from your product, and not some arbitrary markup based on your costs." - Disciplined Entrepreneurship by Bill Aulet
The best companies in the last 2 decades have succeeded largely due to business model innovation. Here are a few examples. 🥇
- Search engines -> Google (Targeted ads model) 🔍
- Taxis -> Uber (Experience disruption by unlocking existing driver capacity) 🚗
- Blockbuster -> Netflix (Subscription service and now content creation) 🎬
- Hotels -> AirBnB (Enabled strangers to trust one another) 🛏️
- Gillette -> Dollar Shave Club (Affordable subscription service)
- Apple Music -> Spotify (Free with ads and premium subscription service) 🎧
Take a Quiz
What is your business model?
What are the pros and cons of common business models?
How to select your business model?
What is the Lifetime Value (LTV) of your Customer?
What is your Cost of Customer Acquisition (COCA)? How can you reduce it?
Recommended Books & Blogs
Want help with your business model?
VerroBot is our entrepreneurship guide that shares relevant content, videos and blogs to help design your business model to maximize value creation. 💸