Business Model

"A business model is a framework by which you extract from your customer some portion of the value your product creates for them. It is the idea that the amount of money your venture gets paid is based on how much value the customer gets from your product, and not some arbitrary markup based on your costs." - Disciplined Entrepreneurship by Bill Aulet

The best companies in the last 2 decades have succeeded largely due to business model innovation. Here are a few examples. πŸ₯‡

  • Search engines -> Google (Targeted ads model) πŸ”
  • Taxis -> Uber (Experience disruption by unlocking existing driver capacity) πŸš—
  • Blockbuster -> Netflix (Subscription service and now content creation) 🎬
  • Hotels -> AirBnB (Enabled strangers to trust one another) πŸ›οΈ
  • Gillette -> Dollar Shave Club (Affordable subscription service)
  • Apple Music -> Spotify (Free with ads and premium subscription service) 🎧

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What is your business model?
Suraj Kripalani
Suraj Kripalani, Co-Founder at BonBillo, discusses what is a business model and uses Google’s example to highlight the importance of selecting the right business model.
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What are the pros and cons of common business models?
Suraj Kripalani
Suraj Kripalani, Co-Founder at BonBillo, discusses the following business model choices and the pros and cons associated with each.
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How to select your business model?
Suraj Kripalani
Suraj Kripalani, Co-Founder at BonBillo, discusses the following key considerations to help select your business model.
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What is the Lifetime Value (LTV) of your Customer?
Suraj Kripalani
Suraj Kripalani, Co-Founder at BonBillo, discusses how to compute the Lifetime Value (LTV) of a customer and the key factors driving LTV.
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What is your Cost of Customer Acquisition (COCA)? How can you reduce it?
Suraj Kripalani
Suraj Kripalani, Co-Founder at BonBillo, discusses how to compute the Cost of Customer Acquisition (COCA) and strategies to reduce it.
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VerroBot is our entrepreneurship guide that shares relevant content, videos and blogs to help design your business model to maximize value creation. πŸ’Έ