What is a business model?

A business model basically explains how you plan to make money in your startup.  For example, if your startup markets and sells, oh, a new kind of pistachios, you could have two types of business models:

  • One time payment - also called one and done. Your customer goes to the store and buys the pistachios and pays for it on the spot.  This is what you do at a grocery store, or indeed at any retail outlet.
  • Subscription - Your customer signs up to get periodic refills of the candy.  This is what you do if you go on Amazon.com and try to buy some pistachios.  Oftentimes you will be offered two choices: You can either do the one time payment, or you can save money by subscribing. 


Was this article helpful?
0 out of 0 found this helpful

      This website and all posts and content are intended for educational purposes only and for no other purposes. This website does not and is not intended to provide legal, financial or tax related advice. Although we take great care to make sure that all of our information is accurate and useful for it intended educational purposes, if you have a specific issue for which you need actionable advice, please come to the Martin Trust Center in person to speak to one of our Entrepreneurs in Residence (EIR) or consult a licensed attorney or other professional. Despite the backgrounds and qualifications of our staff, mentors, lecturers, authors, EIRs and speakers no attorney-client, advisor, or other confidential/privileged relationship exists or will be formed between you and the Martin Trust Center or the Massachusetts Institute of Technology. Under no circumstances should any content be relied upon in making any decisions that could have any financial or legal impact(s).
Have more questions? Submit a request


Powered by Zendesk