Ultimately, customers are the only relevant judges of your business model. However, even before you test your model in the market, you can assess its design with 7 questions that go well beyond the conventional focus on products and market segments.
1. How much do switching costs prevent your customers from churning?
2. How scalable is your business model?
3. Does your business model produce recurring revenues?
4. Do you earn before you spend?
5. How much do you get others to do the work?
6. Does your business model provide built-in protection from competition?
7. Is your business model based on a game changing cost structure?
Via Peter Hoeve