Business Model

How will you make money?  In many businesses, there are multiple points in the value chain where one might generate revenue. Which point (or points) in the value chain you have in mind (and exactly how you plan to "tax" the customer) might not be obvious, so you need to make it very, very clear.

  • Exactly who will buy your product or service?
  • What kind of company or consumer?
  • If a company, who in the company will buy it?
  • How will you charge for it? (Annual subscription? Up-front licensing fee? Royalty based on amount of use? One-time purchase? Some other approach?)
  • What will you charge? (License fee? Royalty? Purchase price? Annual subscription? ...)

You need to describe not only the structure of how you will charge, but what exactly is the pricing?

 

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