Determining cost structure & revenue streams

1. Startup Dhaka

2. Revenue Streams >
Cost Structure

3. Business Model Canvas

4. Customer Segments
Who Are Our Most Important
Customers?
For Whom Are We Creating
Value?
DiagramfromAlexOsterwalder,BusinessModelGeneration

5. Value Propositions
• Value to Customers?
• Problems Solved?
• What Bundle of Products &
Services to Customers?
DiagramfromAlexOsterwalder,BusinessModelGeneration

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. Customer Relationships
• What Type of Relationship
Do Customers Expect?
• How Expensive Are They to
Maintain?
• Integration With Rest of
Business Model?
DiagramfromAlexOsterwalder,BusinessModelGeneration

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. Key Resources
What Key Resources Are Required to Deliver
Value Proposition? Distribution Channels?
Customer Relationships? Revenue Streams?
DiagramfromAlexOsterwalder,BusinessModelGeneration

10. Key Activities
What Key Activities Do Value Propositions Require?
Distributions Channels? Customer Relationships?
Revenue Streams?
DiagramfromAlexOsterwalder,BusinessModelGeneration

11. Key Partners
Who Are Key Partners? Key
Suppliers?
Which Key Resources Are
Partners Providing? Key
Activities?
DiagramfromAlexOsterwalder,BusinessModelGeneration

12. Cost Structure
Most Important Costs?
Which Key Resources and Activities are Most Expensive?
DiagramfromAlexOsterwalder,BusinessModelGeneration

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. User ≠ Decision Maker/Payer
• Advertising
• Medical Devices
Multi-Sided Markets

15. Pricing and Quantity
• Cost Plus
• Competitive Pricing
• Value Based
• Volume Pricing
• Economies of
Scale
• Offset Fixed
Costs

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. 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. 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. 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. 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