This week you are going to get to the bottom of your business model.
Prepare
- Continue to run daily standups and weekly goal setting and wall-of-wins celebration sessions with your team.
- Do you know entrepreneurs who are developing comparable businesses in non-competitive spaces? If so, make contact and compare notes to see how they have thought about building a business model, working on their unit economics, and also coming up with a strawman financial plan to look at their venture’s overall economics.
Learn
- Read this Masterclass about pricing from Professor Catherine Tucker, then watch this excellent Y Combinator Startup School workshop about the same topic
- Watch this Y Combinator Startup School workshop about business models and metrics
- If you are working on a SaaS business: Also watch David Skok’s talk about SaaS business models
- Read this Masterclass on Sales by Jose Ramos
- Read the Masterclass on Basics of Finance by Prof. Bill Aulet
Build
- Use this worksheet to work on pricing for your product.
- Use this worksheet to work on your sales channels and lifetime value (LTV)
- Use this worksheet to work on your cost of customer acquisition (COCA, also known as customer acquisition cost, or CAC)
Trivia question of the week:
- Why is value-plus pricing a rookie move?