What's a startup? First Principles

Success consists of going from failure to failure without loss of enthusiasm, Wiston Churchil

Everyone knows what a startup is for - don't they?

In this post, we're going to offer a new definition of why startups exist: a startup is an organization formed to search for a repeatable and scalable business model.

A business model 

a business model describes how your company creates, delivers and captures value. Or in English, a business model describes how the company makes money (depending on the metrics for success, it can be to get users, to grow traffic, etc.)

Let's think of a business model as a drawing showing all the flows between the different parts of the firm. A business model diagram also shows how the product gets distributed to the customers and how money flows back to the firm. Also, it shows the firm's cost structures, how each department interacts with the others and where the firm fits with other firms or partners to implement the business.

Drawing a business model 

Many people have been working on how to diagram and draw a business. 

original source: 

https://steveblank.com/2010/01/25/whats-a-startup-first-principles/