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In considering a startup, it's crucial to understand its organization through a business model. A business model illustrates how a company creates value for itself while delivering products or services to its customers. Traditionally, companies were structured around functional departments like sales and engineering, depicted via an organizational chart. However, a modern approach involves a different framework—illustrating the nine essential components that define any business, regardless of its size, from large corporations to small startups. This framework aids in efficiently conceptualizing all aspects of a business.
