Entrepreneur Edge

MODULE 4 — Business Models Are Strategic Choices

Lesson 4.1: Revenue Is Not the Business Model

Revenue answers:

Who pays
How much
How often

A business model answers:

Who benefits
Who decides
Who pays
Who bears risk

Confusing the two leads to misalignment.

Lesson 4.2: Common Business Model Patterns

Examples:

Direct subscription
Usage-based
Services + product
Marketplace
Enterprise licensing

Each model implies:

Sales motion
Growth speed
Capital needs
Founder workload

Choose intentionally.

Lesson 4.3: Accidental Business Models

Many startups fall into models by default:

Consulting because it pays early
Freemium because it feels friendly
Enterprise because “big contracts”

Default choices shape future constraints.

Ask:

“Is this the business we want—or the one we drifted into?”