So what exactly is a business model?

A business model is the method/mechanism (which could be proprietary) YOU will use to generate profits and acquire, retain and service customers.

Here are some examples of the more popular business models currently being used:

Your business model will typically be the strongest at the inception of the business.

However, over time you need to have the flexibility to morph your business model to keep up with current changes in the marketplace.

Example: think about all of the businesses that have been disrupted by the growth of the Internet. At one time Blockbuster video rental had an 80% market share and dominated the video rental market.

Until, Netflix came along and blockbuster unfortunately failed to change their business model with the changes in the marketplace.

Blockbuster is now bankrupt while Netflix is worth $65 billion.

"Everybody's Got a Plan Until They Get Punched In The Face"

Business plans generally are a waste of time because you don't want to spend time justifying the way you're doing business because of some damn business plan.

Your business WILL get punched in the face at some point. You don't need a business plan to execute on a great business model!

Bankers and finance people usually want to see a business plan…

To which I soooooo enjoy saying, my bank account IS my business plan!