FINANCIAL MODEL
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Creating a Financial Model forces an entrepreneur to plan very specifically how their business will work, how users and customers find and use their products, and how those processes create revenues and costs. In addition, having a solid financial model is also a pre-requisite for raising your first round of startup funding
TASK 1: It could be interesting to reuse the examples sheets that were used in the previous session as they deal with cases in which the following were redefined:
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the product, according to a client segment (Wii)
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the service, according to a particular channel (Kiala)
All the members of the teams briefly share the information gathered during the fieldwork. Comparing and contrasting as a team the users' suggestions with the possible changes in their business model. Discussing the importance of talking and validating all the proposals with users. You have to become aware of the numerous options available when designing a business model.
TASK 2: Using both the business model puzzle, the business model templates again and all the information gathered, you will have to redesign or refine the business model defined in the previous session.
On this occasion, you will have to take into account all the issues linked to the financial viability of the proposal, not so much from the quantitative point of view as from the qualitative. To carry out the analysis, it will be necessary to assess, within each of the four business model components, who pays and who charges (costs/income). The questions that may be asked are of the following kinds:
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Can we do away with a part that costs money?
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Can we make money from something that is currently free?
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Who could pay for it?
It is important for you to work first on the business model and then on its financial component.
TASK 3. this task will help you to prepare your team identifying all the information from the business model that may help to decide on what the solution should be like and, therefore, the prototype.
Each team will use the template “Critical elements of the business model” to identify the critical elements that may have a bearing when designing and building the prototype. This template must be kept to be used in the next session.
In addition, as it is the final session of a module, as before, the summary material will be completed using the usual process (template “Module outcome sheet: the business model”).