Examples of Traditional Business Models While the specifics of a business model vary from one company to another, most can be categorized into one of several types.

A startup's business model slide needs to paint a picture that shows where the business is now and how it can grow over time.

An example of the product pyramid business model at work can be seen in paper towels. The same parent company may offer three paper towel brands, ranging from $1 to $3 per roll.

However, there is an example of this business model being exercised right now that is so fundamental to our way of life we barely realize it is happening.

The model works because the value is created around the open-source core by creating an ecosystem of users. The goal is an unfiltered relationship with the developers using it.

In reality, business model innovation is always what creates the big new waves of growth. And you see these things happening all over, Sarah. Just a few examples.

An example of a business model to avoid comes from my book, Great CEOs Are Lazy, in which I wrote about a low-margin steel distribution business that was forced to carry $100 million in inventory ...

The razor-razorblade model is a pricing tactic in which a dependent good is sold at a loss (or at cost) and a paired consumable good generates the profits.