Business models are developed by visualizing all of the "working parts" that make up a business. A traditional business plan, on the other hand, is most often a formal, written document that provides details about how an entrepreneur intends the business to operate. Learning to develop a sound business model helps ensure that everything that is critical to the success of the business is in place and working in harmony. Developing the business model depends fundamentally on engaging real customers very early in the creation of the business so we have a better chance of offering what the market really wants. One of the biggest benefits I have seen from using business modeling over writing a traditional business plan is that it allows for adaptation. We use what we learn from the very beginning of the start-up to make changes in our business model as we uncover who our customers really are, what they really want, and how best to put everything in place to ensure that we deliver what we promise to them. This process is known as "pivoting" the business model.
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