Business Models: A Critical Element to Entrepreneurial Achievement
But what exactly is a “business model’, anyway? No one ever defined the term
precisely – it seemed to mean either ‘what we do’ or ‘how we hope to make money someday.
– Harvard Business Review 2001
By Debbi D. Brock, Anderson University
Ask any executive or nonprofit leader what a business model is, and you will have a
variety of answers. No matter what your industry, healthcare, education, etc. –
understanding and being able to articulate your business model is important to an
entrepreneur’s success. According to Osterwalder, Pigneur and Smith, the
business model “describes the rationale of how an organization creates, delivers, and
captures value.” A word of advice before you start down the path of creating a viable
business model. According to Guy Kawasaki, author and founder of Garage
Technology Ventures said the only reason to go into business is to “make meaning”. If
you remember this and nothing else, to make meaning and to “make the world a
better place,” you will feel good about pursuing the business idea.