Business Model Fit

/ˈbɪz.nɪs ˈmɑː.dəl fɪt/

The inflection a startup reaches when it has gathered enough evidence to demonstrate that it is able to deliver its value proposition with an optimal profit, based on a scalable business model.

In this transition phase the startup team looks for ways to embed its solution into a business model that is viable and feasible. This means finding a cost-efficient backend operating model as well as iterating towards a revenue and pricing model that maximizes earnings. This is also the critical phase where a shift of focus from value creation for customers towards value capture for the company takes place.