A business model is a company's plan for how it will create, deliver, and capture value. It describes what the company offers, who it serves, how it makes money, and what costs it incurs. It is the logic behind how a business operates and sustains itself.

Common business models include subscription, freemium, e-commerce, marketplace, advertising, and franchise. The Business Model Canvas is a popular tool for mapping key partners, activities, resources, value propositions, customer relationships, channels, customer segments, cost structure, and revenue streams.

Key points

• Plan for creating and capturing value
• Describes revenue and costs
• Includes subscription, freemium, and marketplace
• Mapped with the Business Model Canvas