What is a "business model"?

What is a "business model"?

William A. Cohen (Author & Founder, Institute of Leader Arts) gives expert video advice on: How do I decide on the best business model for my company? and more...

Well a business model is just an explanation of how you're going to conduct your business. That is: From start to finish, I'm going to manufacture this product, I'm going to hire a salesman to sell it, and they're going to sell it. How exactly you are going to do this is where the business model comes in. If for example, it's an online school. First, you've got to get the customers; maybe you advertise through the internet in some way to persuade people to call in. You'll have representatives talk with them and you'll send them some material and maybe talk with them again; convincing them to sign up. They pay their money, they take the course, and they finish up their program and they graduate. So a business model is just a model of what you're going to do from start to finish; from your start until you collect the money, and how you're going to operate.