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A business model is a story of how an enterprise works. Like all good stories, a business model relies on basics of character, motivation and a plot. For a business the plot revolves around how it will make money. For a social enterprise, the plot is how it will change the world. In both cases, the character must be delineated, their motivations must be plausible, and the plot must turn on an insight about value.

The business model is simply a working description that includes the general details about the operations of a business. The components that are contained within a business model will address all functions of a business, including such factors as the expenses, revenues, operating strategies, corporate structure, and sales and marketing procedures. Generally speaking, anything that has to do with the day to day functionality of the corporation can be said to be part of the business model.

A business model describes the rationale of how an organization creates, delivers, and captures value - economic, social, or other forms of value. The process of business model design is part of business strategy.

In theory and practice the term business model is used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies.

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The business model is simply a working description that includes the general details about the operations of a business. The components that are contained within a business model will address all functions of a business, including such factors as the expenses, revenues, operating strategies, corporate structure, and sales and marketing procedures. Generally speaking, anything that has to do with the day to day functionality of the corporation can be said to be part of the business model.External factors also are part of a comprehensive business model. Chief among these elements is defining the target consumer audience for the goods and services produced by the corporation. This one single element of identifying the target audience will influence the form and function of both the marketing and sales efforts of the company, which in turn will impact the overall cost to produce each unit of a product. The business model will take this information into consideration and set retail pricing that will allow the company to operate at a profit, assuming a certain level of sales is realized consistently.

As part of the business model, there is a need to address internal factors that relate to the ongoing operation of the company. This will involve defining the departments and divisions within the company, along with the procedures that govern the creation of positions and job responsibilities within each department. Management of all the departments is also an important component of the business model, as is the definitions of the responsibilities of the executives within the organization. Business operations such as manufacturing facilities, defining the production process, and allowing for the labor needs to produce the products are also part of the business model.

External factors also are part of a comprehensive business model. Chief among these elements is defining the target consumer audience for the goods and services produced by the corporation. This one single element of identifying the target audience will influence the form and function of both the marketing and sales efforts of the company, which in turn will impact the overall cost to produce each unit of a product. The business model will take this information into consideration and set retail pricing that will allow the company to operate at a profit, assuming a certain level of sales is realized consistently.