A Business Model outlines how a company creates, delivers, and captures value. It encompasses various components, including target customers, revenue streams, and cost structures, providing a framework for understanding how a business operates and thrives in its market. Different types of business models exist, such as Subscription, Freemium, and E-commerce. Each model has its unique approach to generating revenue and engaging customers, making it essential for entrepreneurs to choose the right model that aligns with their goals and market demands.