Startups usually run at a deficit while designing and building the product. But companies are designed to make money, and over time, as unit economics and customer acquisition costs improve, you’ll probably tip into the blue. Maybe. Hopefully. At the very least, that’s what your investors will be betting on. So that means your business model slide needs to paint a picture that shows where you’re at now and how the business can grow over time. This was the example business model slide I used for my book “Pitch Perfect.” You can see the full template here. Image Credits: Haje Kamps In theory, your “business model” could include every aspect of the business; the Business Model Canvas is one way to explore that, and you could easily spend an hour just talking about the whole end-to-end business model. For the purposes of a funding pitch, however, it’s likely you only need a few crucial elements: COGS, or cost of goods sold, is the incremental cost for each unit you deliver. For software, this typically rounds to zero, but for hardware products or more service-driven businesses, the unit cost can be substantial. CAC, or customer acquisition cost, is the cost […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
