What Exactly Is A Business Model
CONTENTS:1. A reader asks...2. Evolution of a definition...3. My definition of a business model.4. Are you stuck with "tribal knowledge?"5. Help with a franchise manual.==================================================1. A reader asks...Dear Sirs,What exactly is a business model? I could not find a definition in common literature. I am a student of business economy in Berlin, Germany. I would be very happy if you could give me an answer. Thanks and have a nice day.Kind regards,A. R., Berlin, Germany2. Evolution of a Definition...This question gives me a chance to review our basic premises again.I have heard people use the term "business model" many ways. Often, people refer to a specific business process as a business model.For example, I've heard people call their sal'es process a business model. Similarly, you could program a simulation model for your manufacturing process and call it a business model.So, let's examine what the American Heritage Dictionary of the English Language says (excerpts).Business:1. a. The occupation, work, or trade in which a person is engaged [...] b. A specific occupation or pursuit [...]2. Commercial, industrial, or professional dealings [...]3. A commercial enterprise or establishment [...]4. [...]Model:1. A small object, usually built to scale, that represents in detail another, often lar'ger object. [Bad news: A "Barbie Doll" model is NOT built to scale!]2. A preliminary work or construction that serves as a plan from which a final product is to be made[...]3. A schematic description of a system, theory, or phenomenon [...]4. A style or design of an item [...]5. [...]Woops! If you combine these two words, you still don't have a specific definition. So, I