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The Science of Start
Session 5: Revenue streams




                             paulshawsmith
                                scientific business strategy
What do you need to
learn this week?




                paulshawsmith
                   scientific business strategy
What revenues streams
will the business use to
generate cash?




                      paulshawsmith
                         scientific business strategy
What is the optimum
pricing point for each
revenue stream?




                     paulshawsmith
                        scientific business strategy
What are the different ways to make money?
1
    Asset sale




                 paulshawsmith
                    scientific business strategy
Things
Vehicles
Buildings
2
    Usage fee




                paulshawsmith
                   scientific business strategy
Telephone bill
Room rental
3
    Subscription fees




                   paulshawsmith
                      scientific business strategy
Experienced Employees
Medical aid fees
4
    Lending/
    Renting/
    Leasing




               paulshawsmith
                  scientific business strategy
Property rental
Car rental
5
    Licensing




                paulshawsmith
                   scientific business strategy
Cartoon licensing
Brand licensing
Process licensing
Patent licensing
6
    Brokerage fees




                     paulshawsmith
                        scientific business strategy
Real estate agents
The barter baron & Rusting Mazda’s
7
    Advertising




                  paulshawsmith
                     scientific business strategy
Advertising revenue
Advertising fees
8
    Service fee




                  paulshawsmith
                     scientific business strategy
Once off fee
Coaches
9
    Interest & investments




                   paulshawsmith
                      scientific business strategy
Banks
Pick n’ Pay
 Asset sale
  Usage fee
  Subscription fee
  Lending/leasing/renting
  Licensing
  Brokerage fees
  Advertising
  Service fees
  Interest and investment

Different types of revenue streams
Questions




            paulshawsmith
               scientific business strategy
In groups of 3 – 4 brainstorm times:


  *   You are a consulting team


  *   The CEO of Coke Enterprises has asked you to:


  *   Come up with as many ways as possible to generate a
      revenue from the coca cola brand

  *   Use the categories of revenue types to guide your
      thinking


  *   Choose the best revenue stream idea to pitch to the
      class

  *   Time: 10 minutes

How many different channels can you think of?
 Asset sale
  Usage fee
  Subscription fee
  Lending/leasing/renting
  Licensing
  Brokerage fees
  Advertising
  Service fees
  Interest and investment

Consulting job for Coke
   What revenue streams are the most profitable?

   Is predictability of the revenue stream important?

   How important is repeated revenue streams?

   Diversified vs. Single revenue stream?

   How important is timing of the revenue stream payment ?

   What are our customers really willing to pay for?

   What revenue streams capture the customers full
    willingness to pay?



How many different channels can you think of?
In groups of 3 – 4 brainstorm times:



  *   For each group members business:


  *   Come up with as many ways as possible to generate a
      revenue

  *   Rate each revenue type in terms of customer
      preference and your preference


  *   Let the class know if you are planning on testing a
      new revenue stream

  *   Time: 20 minutes


How many different channels can you think of?

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01. types of revenue streams

  • 1. The Science of Start Session 5: Revenue streams paulshawsmith scientific business strategy
  • 2.
  • 3. What do you need to learn this week? paulshawsmith scientific business strategy
  • 4. What revenues streams will the business use to generate cash? paulshawsmith scientific business strategy
  • 5. What is the optimum pricing point for each revenue stream? paulshawsmith scientific business strategy
  • 6. What are the different ways to make money?
  • 7. 1 Asset sale paulshawsmith scientific business strategy
  • 11. 2 Usage fee paulshawsmith scientific business strategy
  • 14. 3 Subscription fees paulshawsmith scientific business strategy
  • 17. 4 Lending/ Renting/ Leasing paulshawsmith scientific business strategy
  • 20. 5 Licensing paulshawsmith scientific business strategy
  • 25. 6 Brokerage fees paulshawsmith scientific business strategy
  • 27. The barter baron & Rusting Mazda’s
  • 28. 7 Advertising paulshawsmith scientific business strategy
  • 31. 8 Service fee paulshawsmith scientific business strategy
  • 34. 9 Interest & investments paulshawsmith scientific business strategy
  • 35. Banks
  • 37.  Asset sale  Usage fee  Subscription fee  Lending/leasing/renting  Licensing  Brokerage fees  Advertising  Service fees  Interest and investment Different types of revenue streams
  • 38. Questions paulshawsmith scientific business strategy
  • 39. In groups of 3 – 4 brainstorm times: * You are a consulting team * The CEO of Coke Enterprises has asked you to: * Come up with as many ways as possible to generate a revenue from the coca cola brand * Use the categories of revenue types to guide your thinking * Choose the best revenue stream idea to pitch to the class * Time: 10 minutes How many different channels can you think of?
  • 40.  Asset sale  Usage fee  Subscription fee  Lending/leasing/renting  Licensing  Brokerage fees  Advertising  Service fees  Interest and investment Consulting job for Coke
  • 41. What revenue streams are the most profitable?  Is predictability of the revenue stream important?  How important is repeated revenue streams?  Diversified vs. Single revenue stream?  How important is timing of the revenue stream payment ?  What are our customers really willing to pay for?  What revenue streams capture the customers full willingness to pay? How many different channels can you think of?
  • 42. In groups of 3 – 4 brainstorm times: * For each group members business: * Come up with as many ways as possible to generate a revenue * Rate each revenue type in terms of customer preference and your preference * Let the class know if you are planning on testing a new revenue stream * Time: 20 minutes How many different channels can you think of?

Editor's Notes

  1. So, the first thing that R100 million plus entrepreneurs do is they have ambition. Oceans and oceans of ambition.
  2. Take for example a study done at the on over 5,000 firms that looked at whether firms sought advice from an their accountant. Firm which did seek advice had a 70% higher odds of surviving then firms which did not seek advice.