Business model refers to the way a company is making a profit.
The choice of the business model usually is based on the products or services a business is going to sell as well as its target market.
There are two main business models:
- Business to consumer (B2C) is a model where businesses sell their products or services directly to their end-users (consumers).
- Business to business (B2B) is a model where a business sells its products or services to another business rather than an individual consumer.