Create more value than you can capture
A business model is a story about how you can create, deliver and capture value. In a lot of cases, in the social sector, this translates to value = change for the target group you are focussed on creating change for. The thing that can not sit with most people is the idea of ‘capturing value’. You can say, “I do not want to capture all the value. I am not here just for profits”. And you are right. However, do you have to capture all the value for yourself?
Tim O’Reilly who is the founder of O’Reilly publishing in the US talks here about how every business should focus on creating more value than they can capture.