What is Business Model?
A business model describes how a company creates, delivers, and captures value. It covers customers, value proposition, channels, revenue streams, key resources, activities, partners, and cost structure.
How It Works
- Define the target customer segments and value proposition.
- Map revenue streams, channels, and customer relationships.
- Identify cost drivers, key resources, and strategic partners.
Saudi Context
Saudi startups under MISA licenses and SME programs (Monsha’at, Kafalah) use canvas-style business models to access financing. ZATCA’s Fatoora platform reshaped retail business models by mandating real-time e-invoicing.
Example
A Saudi SaaS startup serves SMEs via monthly subscriptions, sells through a Riyadh-based partner network, and earns a 15% margin after AWS hosting and support costs.