Business model
A structured description of how a company creates, delivers and captures value: customer segments, value proposition, channels, revenue streams, key resources and cost structure.
In practice
The Business Model Canvas (Osterwalder, 2010) remains the standard one-page tool for formalising a business model. A well-documented model aligns internal teams and facilitates investor discussions. The central question is not how to make money, but why customers pay you rather than a competitor — the answer is the value proposition, the foundation on which the model rests.