Business models

A business model describes the rationale of how an organization creates, delivers, and captures value.

Types of business models:

1. Sell a product: well defined, easy to scope and price, produce inventory with hope for sales
2. Sell a service: low startup costs, flexible to customer needs, tough to price
3. Sell a subscription: customer pay regularly, recurring fees and may receive regular product upgrades
4. License a technology: involve lower risk and lower reward
5. Advertising: works best when volume of users/viewers is large
6. Hybrids: sell products & offer services together

This blog post is based on my learnings from the course on ‘entrepreneurship’ offered by Maryland Technology Enterprise Institute, University of Maryland through Coursera (2014).