This study shows how the repertory grid methodology can be used to understand entrepreneurs' cognitive construction of business models and evidence of entrepreneurs' differential cognition of high‐profit and low‐profit business models. We show that entrepreneurs are more cognitively complex and more nuanced in constructing high‐profit business models than low‐profit business models. Furthermore, although they are perceived as meaningful, low‐profit business models are characterized by relatively less clear cognitive constructions. This study suggests that the repertory grid technique may be useful for future research and entrepreneurship practice to understand the entrepreneurial cognition of business models.