As ubiquitous computing technology is proliferating, a wider range of u-services applying ubiquitous computing technology has been implemented and some of the u-services have been actively considered for commercialization. Accordingly, establishing corresponding business models based on u-services also have been increased. However, structured methodologies to build u-service business models are still in its very early age. Moreover, since most of the legacy business model formulation and analysis methodologies have stressed on conventional or digital services, not u-services. Hence, the purpose of this paper is to propose a structured methodology of formulating and analyzing business models for u-services. An illustrative example is described to show the feasibility of the proposed methodology. To do so, Business Model Diagram (BMD), which adopts model components for u-services, is newly developed.