Business & revenue models · Core
Business model
Also called: commercial model
ELI5
How a business works and makes value sustainable.
Used in conversation
“The business model needs to explain both customer value and economics.”
Definition
The system by which an organisation creates, delivers and captures value.
Here “Business model” means: The system by which an organisation creates, delivers and captures value.
Pitch context
You will see “Business model” in strategy decks, market analyses, business plans and planning workshops when the discussion reaches business & revenue models.
Why it matters: It helps a reader interpret business & revenue models without confusing the measure, decision, role or evidence being discussed.
Connected terms
- Revenue modelA business model explains the whole system of creating and capturing value; a revenue model explains how money is earned.
Sources & evidence · 5
Supporting source families. This entry is an editorial synthesis rather than a quotation from one canonical glossary.
- Strategyzer — Business Model Canvas resourcesSupporting source family · practitioner · checked 2026-08-16
- Strategyzer — Value Proposition Canvas resourcesSupporting source family · practitioner · checked 2026-08-16
- LEANSTACK — Lean CanvasSupporting source family · practitioner · checked 2026-08-16
- U.S. Department of Justice Antitrust Division — Herfindahl-Hirschman IndexSupporting source family · primary · checked 2026-08-16
- U.S. Census Bureau — Business and economy dataSupporting source family · primary · checked 2026-08-16