Business Plan Preparation Revenue Model Frank Moyes Leeds College of Business University of Colorado Boulder, Colorado Revenue Model

Tonight Marketing Strategy Revenue Model In the Fire – Industry Analysis & Model Company Hand-in 10 Call Reports Competitive matrix Model company description Marketing Strategy

Next Week Operations Plan Development Plan Supply chain Walk an order One Button Business Plan Interim Peer Evaluations Review status of plans Marketing Strategy

Two Approaches Top down – market penetration & timing Bottom up – pipeline, revenue by customer Revenue Model

Revenue Drivers Depends on market Examples Market penetration Market size & growth Price & discount Capacity utilization rate Sales cycle Lead time Response rate Churn rate How measure? Revenue Model

Revenue Model (Bottom-up) Identify specific customers Identify decision maker Determine Annual purchases today & future Who purchase from & level of satisfaction What do you need to do to get an order? If you meet the criteria, how much business can you expect? Revenue Model

What is a Revenue Model? Market potential - number of customers, transactions or units, purchases Size & growth Market share - penetration rate Product/Services offered Roll-out strategy Range & mix New Products/Services Obsolescence Frequency of purchase – per day/week/month Capacity Utilization – per time period, event Prices Price per customer, transaction or unit Average revenue per customer or transaction Channel strategy - discount Revenue Model

Revenue Model

Revenue Model

Revenue Model

Revenue Model

Revenue Model

Revenue Model

Revenue Model

Revenue Model