Lean Launch Padprep for Week 6 :Revenue Streams

Tues 3/3 & Wed 3/4/15

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LLP Week 2

Adapted from Steve Blank’s Lean LaunchPad Coursehttp://steveblank.com/2011/03/08/a_new_way_to_teach_entrepreneurship

LLP Week 3

LLP Week 4

& LLP

Week 5

LLP Week 1 – Overview of the whole canvas

LLP Week 6

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Revenue Streams – Key Concepts

Revenue Model = the strategy the company uses to generate cash from each Customer Segment (e.g., direct sales, licensing, subscription)

Within the revenue model, how do I price the product?Pricing is a tactic Revenue Model is the

Strategy

Every customer segment needs a revenue model

• What are your hypotheses about revenue model strategy & pricing tactics?• What experiments will you design/carry out to verify these hypotheses?

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Preparing for Week 2: Value Proposition

Watch Course video lesson 6: Revenue Streamshttps://www.udacity.com/course/viewer#!/c-ep245/l-48730232/m-48714323

SOM pp. 180-188: Revenue & Pricing Hypothesis SOM pp. 260 – 269: Verify Business Model SOM pp. 438 – 456: Metrics that Matter SOM pp. 528: Validate Financial Model

Note: Steve Blank uses terms Revenue Stream and Revenue Model Strategy interchangeably.

Leave campus: go talk to at least 10 potential customers (target 15) to test your revenue & pricing model.

Hypothesis Testing

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Week 5: Revenue Streams

• Teams present their updated business model to the class: • Slide 1: Title Slide. Tally # Interviews so far. • Slide 2: Business Model Canvas, with changes highlighted in red.• Slide 3: What were your hypotheses about Revenue Model Strategy &

Pricing Tactics?• Slide 4: What experiments did you run to test your Revenue Model

Strategy & Pricing Tactics?• Slide 5: Diagram of payment flows• Slide 6: What are the metrics that matter for your business model?• Slide 7: Rough 3-year income statement to show you have a real business

with your revenue model, channel, acquisition costs, other significant costs (marketing, engineering, etc..) and hypothetical bottom line potential.

• Slide 8: What did you learn about your Revenue Model Strategy and Pricing Tactics?