Business models have become the primary tools for the financial analysis of nearly all
major business decisions. However, the structure and design of most models have evolved
without reference to an effective business-modelling methodology. In writing this book we
hope to provide the terms of reference for best-practice business modelling.
The structure and content of the book have been derived from our years of experience of
working with business models and training others in the art of business modelling. We set
out to describe the essential principles that underpin the building of any business model,
the scope of what you want a model to do, the elements that need to be included in it, the
most useful spreadsheet functions to incorporate, and how you go about testing a model to
ensure that it works, is reliable and is easy to use. In short, we have tried to produce a
concise, accessible and relevant guide that touches on every aspect of business modelling.
We also hope that we have succeeded in conveying our passion for building effective
decision support tools and that this guide will help others to enjoy creating a “virtual
world” where they can explore and evaluate their business ideas.
A book with so many formulae, like a business model, must be accurate if it is to be useful.
This book has been through several detailed checking stages, so we want it to be accurate
and useful. If you spot any errors that have slipped through the net please inform us, or
the publisher, so that we can correct them in the next edition. Furthermore, in such a fastdeveloping
field, we would welcome feedback from readers of any kind that will help us
improve the book and make it even more useful in future. You can contact us at the e-mail
addresses below.