It is about how suppliers grow their business through it. In short, when those pieces come together, that is when you can say to have a business model.
While the Internet worked as a catalyzer for business model innovation, the term itself was born way before that.
Companies like Amazon, Google and Ebay built, tweaked, and consolidated their business playbook during that era.
A common misunderstanding is to think of business modeling as a one-page business plan.
A business model is a critical element for any startup success as it is what unlocks value in the long-term.
In a way, developing a business model isn’t only about monetization strategies. To develop a business model companies need to create value for several stakeholders.
Thus, a business model it is about what makes users go back to your app, service or product.
It is about how businesses can get value from your solution.
Thus, a successful business model is usually the fruit of this process.
That implies that often an entrepreneur has to design multiple variations of the same business model and test those in the marketplace.