determining cost structure & revenue streams
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Determining cost structure & revenue streamsTRANSCRIPT
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Cost Structure & Revenue Stream
Startup Dhaka
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Revenue Streams > Cost Structure
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Business Model Canvas
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Customer SegmentsWho Are Our Most Important Customers?
For Whom Are We Creating Value?
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Value Propositions• Value to Customers?• Problems Solved?
• What Bundle of Products & Services to Customers?
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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?
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Customer Relationships• What Type of
Relationship Do Customers Expect?
• How Expensive Are They to Maintain?
• Integration With Rest of Business Model?
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Revenue Streams• For What Value Are
Customers Willing to Pay?
• How Much Willing to Pay?
• How Do They Want to Pay?
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Key ResourcesWhat Key Resources Are Required to Deliver Value Proposition? Distribution Channels? Customer Relationships? Revenue Streams?
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Key ActivitiesWhat Key Activities Do Value Propositions Require? Distributions Channels? Customer Relationships? Revenue Streams?
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Key PartnersWho Are Key Partners? Key Suppliers?
Which Key Resources Are Partners Providing? Key Activities?
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Cost StructureMost Important Costs?
Which Key Resources and Activities are Most Expensive?
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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?
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User ≠ Decision Maker/Payer
• Advertising• Medical Devices
Multi-Sided Markets
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Pricing and Quantity
• Cost Plus• Competitive Pricing• Value Based
• Volume Pricing• Economies of
Scale• Offset Fixed
Costs
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MammOpticsPricing 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
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MammOpticsPricing 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
Approved by
customers and
investors
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Payment Flow Diagram
Distributor
Monomer manufacturer
Surfactant formulator
Surfactant user
Consumer facingcompany
Consumer Market Pull(Sustainability
agenda)
Biomass supplier Biomass 15 c/lb
Biomass Range 5-20c/lb
Monomer 80 c/lbDetergent alcohols
80c/lb
Formulation 90 c/lbFormulated
Surfactant 90c/lb
Surfactant 100 c/lb
Formulated Detergent 100c/lb
Detergent 200 c/lb
10% Surfactant in Detergent
Product
Decision Makers
Disposal WasteRegulations
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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
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Beginnin
g 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