• The primary component of the business model is the value proposition. A value proposition is a description of the goods or services a company offers and why they are desirable to customers or clients.
• A new enterprise's business model also covers projected startup costs, financing sources, the target customer base, marketing strategy, a review of the competition, and projections of income and expenses.
• When evaluating a company as a possible investment, the investor should find out exactly how it makes money by looking through the company's business model.

There are many types of business models for every kind of business.

• Traditional business models include direct sales, franchising, advertising-based, and brick-and-mortar stores.
• Hybrid models include businesses that combine internet retail ...