I know it seems complex so, I’ll like to take a break and work on the, "Keep It Simple Stupid", Principle after taking the help from my guru – Seth Godin.
Whatever happens while we dictate value to a market playing the financial model, we need to remember that there exists a very simple definition of a Business model and no one else could have put it better than Seth himself. So I take this opportunity to quote him from his blog –
"Thinking about business models
A business model is the architecture of a business or project. It has four elements:
- What compelling reason exists for people to give you money? (or votes or donations)
- How do you acquire what you’re selling for less than it costs to sell it?
- What structural insulation do you have from relentless commoditization and a price war?
- How will strangers find out about the business and decide to become customers? "
He also goes on to separate the Web 1.0 world and says what carries even more meaning today –
" This business model revolution is just getting started. It’s’ not too late to invent a better one"
Posted By Digvijay "VJ" Singh Rathore