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Business model

How the business creates, delivers and captures value. The whole shape in one page.

Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.

What it means

A business model describes who the customer is, what value they get, how it is delivered, and how the business earns from it.

Why it matters

Two businesses selling the same thing with different models — one-off sale versus subscription, direct versus channel — have completely different economics and are worth different multiples.

What it looks like in practice

The Business Model Canvas is a useful one-page framework: segments, value proposition, channels, relationships, revenue, resources, activities, partners and costs.\n\nThe revenue model is the part most worth examining: one-off, recurring, usage-based, licensing, or a mix.

What to watch out for

Confusing the model with the product. Changing how you charge is often a bigger change than changing what you sell.

Where to get proper advice

Your own unit economics, which is where a model is proved or disproved.

Where to read more

Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28

Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.

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