Show Me the Money. QUICK START REVENUE MODEL. WORKSHOP INCLUDES: Overview of Revenue Model Ways to Validate Revenue Model Profit & Loss Template Example. REVENUE MODEL. An understanding of your costs & opportunity for revenue is VERY important for your business model.
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Overview of Revenue Model
Ways to Validate Revenue Model
Profit & Loss Template Example
An understanding of your costs & opportunity for revenue is VERY important for your business model.
This understanding will allow you to financial projection and have an accurate understanding of your CAPITAL NEEDS.
What is your hypothesis regarding how much you will charge for your product?
- This is the starting point for considering your opportunities for revenue.
Please keep in mind -- until your revenue model is VALIDATED- it’s a hypothesis.
You can use a simple tool to help you validate your price point with your customers…
A matrix that identifies:
Would you buy this product for yourself or someone else? How much would you pay for it?
Likelihood to Buy
$0 $10 $20 $30 (Use appropriate scale)
How Much? (Cost of Product)
HOWEVER – You must understand how much it COSTS to create your product.
This can include:
You don’t want to lose money. This happens when it COSTS more to create/disseminate you product than what you are CHARGING.
Keep in mind that there are other kinds of costs to running a business. These costs can include:
Let’s take a few minutes to consider:
QUESTION: What do you need to change (pivot) about your concept to be profitable?