GOAL: Revenue model designed & business model completed
A revenue model describes how you make money. Hereby, a strong revenue model is particularly important for early stage startups as their potential investors are usually very conscious about monetization. They want to estimate the business potential, i.e. cash flow, frequency of purchases, and recurring revenue through a customer’s life cycle (CLC).
Business model fit takes place when a value proposition is embedded in a profitable and scalable business. Some business models are better than others by design and produce better financial results. They are more difficult to copy and more likely to support growth