Very Simple Ideas for Running a Business: 1) Business Model

[This is the first of a series of occasional posts which examine very simple, but also very frequently mentioned ideas in business. These posts will be short and to the point, and so hopefully also easy to recall and apply.]

"Business Model" describes how a business organisation achieves its key objectives. It therefore is potentially a very wide-ranging idea that could take a long time to explain fully. Indeed, whole books are written about it.

One way to summarise effectively what a business model means is to ask three simple questions: Who (are our most important targets/users of our services)?, What (do we provide to them)?, How (do we do this?). Providing clear and accurate answers should give us a reasonable understanding of the activities of a business organisation. Remember also that our definition of a business is any organisation that's managed along business lines (our post 2 March 2018).


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