Revenue Model (Monetization –Sector 1) Margins [How much of your own money are you contributing towards the business? How much money will you need up-front? Where will you obtain these funds? What portion will you be seeking from other sources? What do your gross margins look like? Are your margins high or low? How much capital did you invest in the business? Where will you obtain funding? Are you profitable? What portion will you be seeking from loans, investors, business partners, friends or relatives, venture capital or government funding? Do you sell on credit? If so, do you really need to? Is it customary in your industry and expected by your clientele? Do you carefully monitor your payables (what you owe to vendors) to take advantage of discounts and to keep your credit rating good? What are your payment and customer credit policies? Briefly outline how much profit you intend on making in a particular timeframe.] Cost Advantage [You could also list your main financial management goals such as cost reduction targets. Do you have superior purchasing power ability? Who are your vendors and suppliers? What are your distribution channels? Are supply costs steady or fluctuating? If fluctuating, how do you deal with changing costs? Should you be searching out new sources of supply, or are you satisfied with present suppliers? How important is price as a competitive factor?] Financials [How fast is the business expected to grow? What are you financial projections? What’s your growth rate? What are your financial objectives?] List your key financial objectives. These can be in the form of profit targets or sales targets (can be placed under the sales model). Prepare you balance sheet and financials (Appendix) Use a forecast spreadsheet to prepare a month-by-month projection (Appendix) Prepare your Break-Even Analysis (Appendix)
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