Step 5: Revenue Streams:
In the Business Model Canvas, the Revenue Streams component encompasses the money that the company generates with each previously defined Customer Segment. But that does not mean the “profit” earned, but the revenue flow involved. This represents the cash that a company gets from each customer Keep in mind that costs must be subtracted from revenues to create earnings. If the customers make up the heart of the business, the revenue streams are the arteries of the business.
Questions to be asked:
- From where will we get that money? (Shares, bank loan, Family loan, have you saved up for it?) Remember that when you have shareholders you give up some of your powers to them.
- How and by when will we pay that money?
- How much profits will we be making?
- When will we start making profit?
- How much are customers willing to pay?
- How will the customers pay?
- Will there be one-time transactions, ongoing payments or both?
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