business model

A business model is like a recipe - it describes how a business makes money. It tells you what type of products or services a business will offer, who they will sell them to, and how they will stay profitable. For example, if a company makes and sells ice cream, their business model would say who they will sell their ice cream to (perhaps grocery stores and ice cream shops), how much it will cost, where the ingredients will come from, and what their profit margin is.