'Business Model defines how a Company provide value to customer and transfer payments to profits'. Elucidate the above statement by highlighting the key components of a business model.

A business model embodies nothing less than the organizational and financial 'architecture' of a business. It is not a spread sheet or computer model, although a business model might well become embedded in a business plan and in income statements and cash flow projections. But, clearly, the notion refers in the first instance to a conceptual, rather than a financial model of a business. It makes implicit assumptions about customers, the behaviour of revenues and costs, the changing nature of user needs, and likely competitor responses. It outlines the business logic required to earn a profit (if one is available to be earned) and, once adopted, defines the way the enterprise 'goes to market'. But it is not quite the same as a strategy. The following key components must be considered while developing a business model: High-level vision: The Vision describes the business model in brief. Key objectives: The top goals and the plan to measure them. Customer targets and challenges: The types of customers along with their exact pain points. Targeting a wide audience won't allow business to hone in on customers who truly need and want product or service. Instead, when creating business model, narrow audience down to two or three detailed buyer personas. Outline each persona's demographics, common challenges and the solutions the business model will offer. Solution: The primary way that the business model solves customer's problems. Solution could be a product, service, technology etc. Value: The core elements of the solution that make it unique and differentiated is value being offered to the customers. How will your company stand out among the competitors? Do you provide an innovative service, revolutionary product or a new twist on an old favourite? Establishing exactly what your business offers and why it's better than competitors is the beginning of a strong value proposition. Once you've got a few value propositions defined, link each one to a service or product delivery system to determine how you will remain valuable to customers over time. Pricing: How you will package your solution and what it will cost. Messaging: A clear and compelling message that explains why your solution is worth buying. Go-to-Market: The channels that use to market and sell to customers. No business can function properly (let alone reach established goals) without key partners that contribute to the business's ability to serve customers. When creating a business model, select key partners, like suppliers, strategic alliances or advertising partners. Unless you're taking a radical approach to launching your company, you'll need a strategy that builds interest in your business, generates leads and is designed to close sales. How will customers find you? More importantly, what should they do once they become aware of your brand? Developing a demand generation strategy creates a blueprint of the customer's journey while documenting the key motivators for taking action. Investment required: The costs required to make the solution a success. Growth opportunity: The ways that you will growth the business, including key partnerships if you need them. It is important to leave room for future innovations. Review initial plan often and implement changes as needed.