Assignment 4: Business Model
February 9, 2017
Create a 12-month business model for your product concept using this business model template. Be sure to do the following:
- Think through the various expenses and revenues associated with operating the product.
- Put monthly costs and expenses for each into the spreadsheet. Take note of the bottom line, which gets automatically calculated in the spreadsheet.
- Show how the business can utilize your $10,000 in imaginary investment early on for startup costs, and emerge at the end of the year with either neutral or positive cashflow. Remember: showing that you can spend all $10,000 without making any of it back is not the point!
- On the second tab, list the assumptions for the numbers you put into the revenues and expenses in the assumptions tab of the spreadsheet. Cite sources for your examples where possible. (For example, if the Cost per Thousand Impressions in advertising is $3, where do you get that from? Relevant data from Keywordspy on how much advertisers spend for keywords related to your product concept may be one source.)
Add a blog post and attach your business model to it. In the post, describe in plain English how your product will make money and/or sustain itself, how you will spend your imaginary funds, and how you will break even.