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In: Finance

What does Business Model: Key Revenue Streams mean when writing a business plan?

  • What does
    • Business Model: Key Revenue Streams

mean when writing a business plan?

Solutions

Expert Solution

Business Model

  • How does your business make money?
  • What do you actually do?
  • Which gap are you trying to fill?
  • How do you generate revenue?
    • What are your revenue drivers?
    • What are those variable whose addition / subtraction / multiplication / division gives the revenue?
  • What are your cost drivers?
  • Is your business asset heavy or asset light?
  • Is it capital intensive or capital light?
  • Is it scalable? Can it be easily replicated?
  • Entry barriers: How easy is it to copy your business?
  • Uniqueness, USPs

Key Revenue Streams:

  • Revenue drivers: what drivers revenues? What leads to generation of revenues?
  • Geographical segments
  • Business segments
  • Operating segments
  • Sources of revenues
  • For example: A company like Accenture have following different revenue streams:
    • Management consulting
    • Technology consulting
    • System Integration
    • Outsourcing
  • Further the revenue streams can be arranged geographically say:
    • North America
    • Asia & pacific regions
    • Latin America and so on...

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