1. The Traditional Approach to a Business Model

Most startups fail because entrepreneurs put all their faith in a product or service the organization created. In their loyalty to this product or service, they fail to give in deep consideration about the business model their organization will follow. Usually the business model is either a one-size-fits-all model, common in the industry, or it is a random amalgamation of systems and processes, created at the spur of the moment to further the main goal which is to sell the product or service.

Successful new ventures do not go to market with their first idea. Instead, the product or service has usually gone through several iterations before arriving at the final version. Similarly, organizations are more sustainable if they have considered several business models before deciding on the best one.