A business model defines how a business idea can be operated in a way that is profitable. All businesses are unique in some way or another, with many taking an influence from competitors using proven business models that have delivered success. Knowing what makes a business model, and how to adapt them to match the environment you operate in, can maximize your chances of being successful.
The mistake made by a lot of software developers who decide to go into business is placing too much emphasis on the technical side of software development. This mistake stems from software development's culture as a whole, which generally tends to advocate sharing of code, information, and ideas, as demonstrated by the open source movement. Although this ideology can prove effective for learning and building a reputation in software development, it shouldn't be confused as being a business model—one of many reasons why software developers find themselves underpaid or failing to make their business a commercial success.
Your business model should look at the method you intend to use for developing and distributing your software in order to define how a business can be built on your skills in software development. Some models make use of software development as the primary business, whereas other models use of software development as a component supporting other business activities. The following are the main business model categories that commercial software development fall under: