Slides from first Business Model Session

1. Business Model Canvas
Workshop
Loughborough University
Graham Gardiner

3. Developing the Idea

13. Thinking about money
• Variable costs - What it costs to make a sale
• Fixed costs - What you will have to pay out
on a regular basis
• Profit
– Gross (Sales Total minus Total variable costs)
– Net (Sales Total minus Total variable costs minus Fixed costs)
• Cash Flow (Ensure you have cash in the bank to pay
bills)

15. Sales Targets
How do you set your prices?
• How do you want to be perceived?
• What do your competitors charge?
• Ask your friends…how much would they pay?
• What does it cost to produce?

16. Sales Targets
• I analyze the client.
• I assess the importance of the situation.
• I assess the urgency of the situation.
• I pay attention to what my competitors charge.
• I consider the relative values of the different possible outcomes.
• I figure out how hard it would be for the client to get better service elsewhere.
• I determine how important my firm's expertise is to the likelihood of a successful outcome
(in other words, is this going to be easier because of our particular skills, or could any
trained monkey use google to find the answers?)
• I consider what we've charged other clients in the past for similar work
• I consider whether those charges were heavy or light in retrospect
• I consider the likelihood of getting more work from this client
• I assess how much work we've done for this client already
• I wonder how important getting this particular job is to our firm (if it isn't, I might raise the
price)
• I decide whether to do a single price for the whole gig, or whether (and how) to break up
the job into minigigs with separate prices
• and then I say, "This is our price."

20. Start up costs
• What will you need to start your new business ?
• From your list, think about
– I have already
– I need to buy (£)
– I might buy later
20
Personal Survival Budget

26. graham@aspiren.org