A majority of the business model literature focus on definitions and typologies, while only a handful of the studies address performance issues (Malone et al 2006, Zott and Amit 2004, Chesbrough and Rosenbloom 2002). Their conclusions, however, offer limited help, individually or together, in making a broad set of guidelines for business model design and performance assessment, especially by those that are in greater need, the entrepreneurial firms. We develop a functional framework to describe a business model, and use the framework to introduce a set of risks associated with a single business model as well as with multiple, coexisting business models.