"A business model is how a company creates value for itself while delivering products or services for customers", Steve Blank [[Udacity - How to Build a Startup]], Lesson 3.2. A business model is a conceptual framework that outlines how an organization creates, delivers, and captures value. It serves as a blueprint for how a company operates and makes money. It is frequently represented in a [[Business Model Canvas (BMC)]]. A well-defined business model helps companies identify their strengths and weaknesses and can guide strategic decision-making processes to improve efficiency and profitability. It also provides clarity about how different elements of a business work together to support overall growth objectives. A business model differs from a [[business plan]], which is a detailed strategy document for setting up or expanding a business. A business plan includes sections like market analysis and financial projections, serving as an operational guide and communication tool for stakeholders such as investors. While the business model focuses on high-level operations and monetization strategies, the business plan outlines practical steps for achieving specific goals.