Chapter 3: Vision and the Business Model

Entrepreneurs must understand what they are trying to accomplish with their new venture and how they intend to execute on these goals. They must have a clear vision for long-term development that can be distilled down to a mission statement capturing the entrepreneur’s intent and objectives. Understanding the intended customers, their needs, and how these needs will be met by the venture is vital to developing the business model. A business model describes the relationship between a venture’s customers, value proposition, differentiating features, scope, organization design, and profit model.