When setting up in business the first thing that most people ask is “What’s your business model”  Well let’s go back to basics for a moment.

A business model is the architecture of a business or project. It has four elements:

1. What compelling reason exists for people to give you money? (or votes or donations). 2. How do you acquire what you’re selling for less than it costs to sell it?

3. What structural insulation do you have from relentless commoditization and a price war? 4. How will strangers find out about the business and decide to become customers?

For more on insight into business models you can read the original article by Seth Godin . You can also see an example of a business model component.