Lesson 1: Introduction

Defining a business model is essential for any business, regardless of whether you’re starting a rock band or an airline. Unfortunately, as more businesses enter the marketplace, we need to develop new, or adjust existing, business models that are innovative and add value to the bottom line. When investors ask, “what’s your business model”, what they’re really asking is, “how do you make money?” 

As an entrepreneur, you need a well-thought-out business model that clearly articulates how you are going to do business, and to document this in a way that allows you to revisit it frequently. You also need to try to find innovative ways to adapt your business model, so you can stay ahead of the game.  As Alexander Osterwalder, the father of the Business Model Canvas, says: “In today’s climate, it’s best to assume that most business models, even successful ones, will have a short lifespan”.

By the end of this module, you will be able to:

• Define a business model
• Use the Business Model Canvas
• Implement business model innovations
• Understand the Lean Startup Approach
• Select an appropriate exit strategy
• Construct a business plan.