Traditional Business model is largely referring to business that you start from scratch yourself - this category also includes a business that your family members have started and passed onto you.
For example, starting up your own shoes/hand bags business, opening up your own restaurant, having your own accounting firm or law practice.
In this business model, you get to call all the shots and have control over most aspects of your business. You develop the products or services, control the sourcing, fulfillment process, branding, marketing, IT, human resources, book keeping, accounting and customer service of the business. Many traditional businesses involve having a retail store front. Although, it is getting more and more common to also have an online presence for traditional businesses.