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Business Model: Contributed by Rajeev Roy, Professor of Entrepreneurship, Ximb

The document discusses key aspects of defining a business model including revenue sources and models, costs, cost structures, investment needs, and critical success factors. It provides examples of different revenue streams and models like subscription, volume-based, and advertising. It also categorizes cost drivers as fixed, semi-variable, or variable and lists common cost centers like payroll, inventory, and advertising.

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Ankit Jain
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46 views11 pages

Business Model: Contributed by Rajeev Roy, Professor of Entrepreneurship, Ximb

The document discusses key aspects of defining a business model including revenue sources and models, costs, cost structures, investment needs, and critical success factors. It provides examples of different revenue streams and models like subscription, volume-based, and advertising. It also categorizes cost drivers as fixed, semi-variable, or variable and lists common cost centers like payroll, inventory, and advertising.

Uploaded by

Ankit Jain
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Business Model

Contributed by
Rajeev Roy,
Professor of Entrepreneurship,
XIMB
Business Model
• What is a business model?
• What is a revenue model?
• How to incorporate costs?
• How to define your business model?
Revenue Sources
• Single stream
• Multiple stream
• Interdependent
• Loss leader
Revenue Models
• Subscription or membership
• Volume or unit based
• Advertising
• Licensing and syndication
• Transaction fee
Questions
• Is there a possibility of multiple streams?
• How are losses from a loss leader being
covered?
• Is it a single or a hybrid revenue model?
• How quickly are the revenues growing?
• How long does it take to collect cash,
following a sale?
Cost Drivers
• Fixed
• Semi-variable
• Variable
• Non-recurring
Cost Structures
• Payroll centered (Direct)
• Payroll centered (contract)
• Inventory
• Space / rent
• Advertising
• Start up expenses
Questions
• Are the cost drivers likely to change over
time?
• What is the relative size of each cost
centre?
• How much volume can be supported by
the current fixed cost?
• Do any of the cost centers deliver a
strategic cost advantage?
Investment
• Maximum financing needs
• Positive cash flow
• Cash break-even
Critical Success Factors
• Select parameters perceived to have the
greatest impact on cash flows
• Select a reasonable range for each
parameter
• Measure the impact of changing the
parameter
• Repeat process
Other Flags
• Biggest risks
• Fatal Flaw

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