Determining cost structure & revenue streams

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Determining cost structure & revenue streams

Determining cost structure & revenue streams

  1. 1. Startup Dhaka
  2. 2. Revenue Streams > Cost Structure
  3. 3. Business Model Canvas
  4. 4. Customer Segments Who Are Our Most Important Customers? For Whom Are We Creating Value? DiagramfromAlexOsterwalder,BusinessModelGeneration
  5. 5. Value Propositions • Value to Customers? • Problems Solved? • What Bundle of Products & Services to Customers? DiagramfromAlexOsterwalder,BusinessModelGeneration
  6. 6. Channels • How to Reach Customers? • Which Channels Work Best? • Which are Most Cost-Efficient? • How are Channels Integrated with Each Other and With Customer Routines? DiagramfromAlexOsterwalder,BusinessModelGeneration
  7. 7. Customer Relationships • What Type of Relationship Do Customers Expect? • How Expensive Are They to Maintain? • Integration With Rest of Business Model? DiagramfromAlexOsterwalder,BusinessModelGeneration
  8. 8. Revenue Streams • For What Value Are Customers Willing to Pay? • How Much Willing to Pay? • How Do They Want to Pay? DiagramfromAlexOsterwalder,BusinessModelGeneration
  9. 9. Key Resources What Key Resources Are Required to Deliver Value Proposition? Distribution Channels? Customer Relationships? Revenue Streams? DiagramfromAlexOsterwalder,BusinessModelGeneration
  10. 10. Key Activities What Key Activities Do Value Propositions Require? Distributions Channels? Customer Relationships? Revenue Streams? DiagramfromAlexOsterwalder,BusinessModelGeneration
  11. 11. Key Partners Who Are Key Partners? Key Suppliers? Which Key Resources Are Partners Providing? Key Activities? DiagramfromAlexOsterwalder,BusinessModelGeneration
  12. 12. Cost Structure Most Important Costs? Which Key Resources and Activities are Most Expensive? DiagramfromAlexOsterwalder,BusinessModelGeneration
  13. 13. Revenue Models • Straight Sales • Subscription • Time and Materials • Consumables: Razor Blades, Printer Ink • Leasing/Renting • Service Contracts • Freemium • Pay per Use • License • Advertising Sales • Intermediation Fee How you generate cash from customer segments – How do customers want to buy from you?
  14. 14. User ≠ Decision Maker/Payer • Advertising • Medical Devices Multi-Sided Markets
  15. 15. Pricing and Quantity • Cost Plus • Competitive Pricing • Value Based • Volume Pricing • Economies of Scale • Offset Fixed Costs
  16. 16. MammOptics Pricing Strategy Equipment Lease model Per-use model Consumable Cost of the device Service per year Per-use fee Consumable $50,000 $3,000 0 0 $5,000 $10,000 0 0 $5,000 0 $50 0 $25,000 0 0 $20
  17. 17. MammOptics Pricing Strategy Equipment Lease model Per-use model Consumable Cost of the device Service per year Per-use fee Consumable $50,000 $3,000 0 0 $5,000 $10,000 0 0 $5,000 0 $50 0 $25,000 0 0 $20
  18. 18. Payment Flow Diagram Distributor Monomer manufacturer Surfactant formulator Surfactant user Consumer facing company Consumer Market Pull (Sustainability agenda) Biomass supplier Biomass 15 c/lb Biomass Range 5-20c/lb Monomer 80 c/lb Detergent alcohols 80c/lb Formulation 90 c/lb Formulated Surfactant 90c/lb Surfactant 100 c/lb Formulated Detergent 100c/lb Detergent 200 c/lb 10% Surfactant in Detergent Product Decision Makers Disposal WasteRegulations
  19. 19. Cost Metrics That Matter • Customer Relationships • Customer Acquisition Costs • Conversion Rates • Lifetime Value • Channel • Margins • Promotion • Partners • Partner Margins • Key Activities • Key Resources • Income Statement v Cash Flow • Burn Rate
  20. 20. Beginning Period 1 Period 2 Period 3 Period 4 Period 5 ETC. Price $ - $ - $ - $ - $ - Units Sold $ - $ - $ - $ - $ - Sales Forecast $ - $ - $ - $ - $ - Income Statement Sales Revenue $ - $ - $ - $ - $ - less: Cost of Goods Sold $ - $ - $ - $ - $ - GROSS PROFIT $ - $ - $ - $ - $ - less: Selling Expenses $ - $ - $ - $ - $ - General and Administrative Expenses $ - $ - $ - $ - $ - Depreciation Expense (assumption: straight line 5 years) $ - $ - $ - $ - $ - R&D Expenses $ - $ - $ - $ - $ - Total Operating Expenses $ - $ - $ - $ - $ - OPERATING PROFIT $ - $ - $ - $ - $ - less: Interest and Other Expenses $ - $ - $ - $ - $ - plus: Interest and Other Revenues $ - $ - $ - $ - $ - PRE-TAX INCOME $ - $ - $ - $ - $ - Income Tax (assumption: 35%, non-adjusted) $ - $ - $ - $ - $ - NET INCOME $ - $ - $ - $ - $ - Integrated Financial Statement

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