Behind Every Building Is a Business Model
By the end of this lesson, you can look at any business and name its four parts: who it serves, what it sells, how the money comes in and what it costs to run.
The four parts of every business
Every shop, studio and tower you pass is answering one question: how do we keep the lights on? The answer is called a business model. It sounds fancy, but every business model has just four parts.
- The customer. Who is this for? A business can't serve everybody. A nail salon serves people who want their nails done. A music label serves artists and fans.
- The offer. What are they selling? A thing you hold (a T-shirt), a service someone does for you (a manicure), an experience (a jet ski ride) or attention (a spot on a billboard).
- How the money comes in. This is the part most people never think about. See the five ways below.
- The costs. What does it take to run? Materials, rent, gas, equipment, people's time, the website. Money in minus costs is what's left over. That leftover is profit.
The five main ways money comes in:
Here's the twist: two businesses can sell almost the same thing with totally different models. One person sells T-shirts one at a time. Another prints them for a whole team on one order. Same shirt, different customer, different money.
5 stops, 5 business models
Tap "Go there" to fly straight to each stop in BERLO City. Answer the question before you move on.
1. Custom Merch 813
🛍️ One-time sale- Offer
- Custom shirts, hoodies and merch, also sold on eBay
- Customer
- People and brands who want custom gear
2. Flex Up Records
🎵 More than one money stream- Offer
- A dancehall and shatta music label
- Customer
- Artists who want to be heard, and fans who listen
3. JetRush SLU at the pier
⏱️ Rental- Offer
- Jet ski rides
- Customer
- Visitors and tourists looking for fun
4. Polished By Zoe
📅 Booking or service- Offer
- Nails, booked on WhatsApp
- Customer
- People in her town who want their nails done
5. The billboards and sponsor towers
📣 Advertising and sponsorship- Offer
- A spot where people will see your name
- Customer
- Businesses that want attention
Stop 5 is the point of the whole walk. The city you just explored for free is a business too. Sponsors pay to be seen by visitors like you. Once you spot that, you'll see it everywhere: free apps, free TV, free websites.
3 quick questions
Map a real business
Pick one place you spend money this week: a gas station, a barbershop, a food spot, an app on your phone. Fill in these lines. You can guess. The point is to start asking the questions.
| Business name | |
| Who is the customer? | |
| What are they selling? | |
| How does the money come in? | |
| Their two biggest costs |
Bonus: find one thing you use for free. Who do you think is paying for it? Post your answer and tag @berlocity.
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