How to Choose a Business Model

The model decides the cash flow

One-off sales bring cash in early and stop. Subscriptions bring smaller amounts repeatedly and take longer to cover acquisition cost. Services convert your time into revenue directly and cap growth. Marketplaces need both sides before either side is useful.

Map the whole model, not just the price

A model is coherent when these pieces fit together.

• Customer segments and the problem you solve
• Value proposition and how you deliver it
• Channels for reaching and serving customers
• Revenue streams and pricing logic
• Cost structure, key resources, activities and partners