Cost Structure & Revenue Stream

Startup Dhaka

Revenue Streams > Cost Structure

Business Model Canvas

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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Genera

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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?

User ≠ Decision Maker/Payer

• Advertising• Medical Devices

Multi-Sided Markets

Pricing and Quantity

• Cost Plus• Competitive Pricing• Value Based

• Volume Pricing• Economies of

Scale• Offset Fixed

Costs

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

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

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

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

 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