Business model is the way in which a business serves its customers that is both useful for the customer as well as the business itself
. Recognition of business through the different models hasnt been an old age phenomenon. Until few decades back, there werent any business models recognition. Instead businesses operated without regard to these models. There are now many famous business models. Each creates value for the customer in a very different way. Why the different businesses have been categorized into these different business models? They have been categorized into these business models because of the fact that it wasnt earlier easy for the ordinary people to recognize the philosophy behind the working of the different businesses and how were they earning profits from the customers. With the explanation of the models, many ordinary people as well as businessmen are able to locate the reasons for which their business became successful. There are many things that are defined in a business model to clear the resources and the workflow that exists in materializing the goals as well as the objectives of an organization. The basic things to work out before determining the success of any business model include infrastructure, value created, customers, and financial resources. In infrastructure the business tries to ascertain what type of activities it would like itself to engage in. It also determines the requirements for that particular business venture in terms of the human as well as the non human resources to achieve the things that it plans to. In value creation the focus is on the importance of the role that the organization is about to play in achieving a particular objective. It is very difficult to go ahead in any proposed business model with clearing in the first place what value the business is suppose to create and how will that be taken by the customers as something beneficial for them as well. Once the value creation part is determined, then the organization is focus on the way in which it would determine the segment which it aims to server. Customer segmentation guides the business the type of market it wants to serve and also on what can it do to serve that particular organization? Once a road map till the selection of customer is determined, financial constraints are taken to task. Cost allocation is made to ensure that priority is given to most important tasks and fiscal control is good enough to sustain the business for a longer time with minimum external debt or equity fed to it